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Indemnifying

  • Babybus
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16 Apr 20 #512147 by Babybus
Topic started by Babybus
I've had legal advice today to ask the mortgage company to indemnify my soon to be ex husband in the mortgage.

Does that mean that I would pay the mortgage and when it was sold he would have a stake? I was also told this would mean he wouldn't have legal rights over the house.

Could someone clarify that for me?

  • .Charles
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17 Apr 20 #512152 by .Charles
Reply from .Charles
I think you may have misunderstood the advice you have received - your first sentence doesn't make sense.

As part of a settlement the beneficial interest in a property can transfer from one party to another. However, this does not override the contract the borrowers have with mortgage lenders.

If the beneficial interest was transferred to you, the mortgage company is unlikely to transfer the mortgage into your sole name as this increases their risk.

In such circumstances, in order that your ex was to accept the transfer but remain on the mortgage, you would have to agree to indemnify him for his share of the mortgage payments and any loss suffered as a result of non-payment.

So, your ex can sign away his interest in the property, the mortgage company can still pursue him for non-payment of the mortgage (or more rightly, any loss as a result of sale after repossession), but your ex can look to you for any loss suffered in accordance with your indemnity.

Charles

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17 Apr 20 #512155 by Babybus
Reply from Babybus
Thank you, would selling when my youngest turned 18 come under that? (unless I had bought him out or sold before that)

In trying to understand it all at much as I can as its all new to me, so when I speak to the mortgage company I ask to indemnify him?

  • hadenoughnow
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25 Apr 20 #512219 by hadenoughnow
Reply from hadenoughnow
If you are both going to stay on the mortgage, I am not sure why you would need to speak to them. The indemnity clause would be part of a court order. This in enforceable by the individual.

It may even include a clause allowing for sale of the property if the mortgage is not paid for say three months.

So if you didn't pay as ordered, the mortgage company would chase him for the money. He is turn could get the court to force repayment and potentially sale of the property.

It is really important that you are clear about the advice you have been given. Is this one off advice from a solicitor or have you signed up to be represented?

If you need help with the process and haven't got the funds for a solicitor, give the helpline a call or contact it via the chat facility.

Hadenoughnow

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