Joint Mortage - Now Split up

Hi looking for advice for a family member.

Her and her ex boyfriend have a mortgage on a house.

They are now split up and she lives at the other side of the country.

He has continued to live in the house.

There are substantial arrears due on the mortage and it's in negative equity of 80,000

While they were together they had gone on interest only. Anytime She wasn't working he paid the mortgage. They have a child together. When she was working she paid the other household bills.

He is/was a strategic defaulter he wanted a write down on the mortgage. He is self employed and has always cooked the books. My family member used to prepare his accounts for revenue.

They have been split up for 2 years. She has no home of her own and only just recently secured employment.

He doesn't pay her maintenance for the child as he said he us paying the mortgage and the maintenance he should pay is her share of the payments.

She is living in another family members home in one bedroom with her 8 year old child. This can't continue long term.

The bank are offering a split mortgage in order to reduce the monthly payments.

She has always said the house should be rented out and that they would split the difference of the shortfall. And then sell once prices rise and the negative equity is at an affordable level.

But he wants to remain in the house.

What are her options. She feels it is very unfair that he gets to live in the house and she by default of no maintenance for the child is paying towards this.

She can't afford to rent a house without taking in lodgers.

I have advised her to seek legal advise. She can't apply for social housing. Will not be able to afford on her current income to rent alone.

What are her options?

She would love to just sign over the house to him BUT the bank wouldn't let him take on the mortgage as he has been presenting them with a much lower income than he really has.

Can she insist that the house is rented out? Can she insist on a sale and look for a write down on the equity? Would she have to declare herself bankrupt? Would they have to do that together? Or would the bank treat her as an individual who has a liability for half the negative equity?

Sorry for the long winded question. We as a family just want to help her to be able to move on.

thanks for your information[broken link removed]

I am not familiar with the area but I would contend that maintenance support for the child should not be offset against putative mortgage payments from her. This is an argument that she needs to have with him unfortunately.

She is not currently (nor does it ever sound like she has) paid the mortgage. It sounds like he has paid over the actual sum of money every month.

I think she needs to start with talking to MABS, her situation sounds convoluted and it would need careful teasing out. Her current situation is not tenable long term and she is tied into a very difficult and unworkable arrangement on a debt.

Her initial approach should be to a solicitor. The mortgage liability and child maintenance are 2 separate issues and need to be addressed separately. MABS are not going to resolve this issue for her as she needs to deal with the fact that she is jointly liable on the mortgage and will not be paying anything to the loan. Insolvency will have to be addressed if the bank take any action against her. ideally a solicitor might be available who would be prepared to deal with both issues. I am dealing with some solicitors who are acting for their clients in similar circumstances. Get a recommendation for a good solicitor who is well versed in family law!!

so-crates said:

I think she needs to start with talking to MABS, her situation sounds convoluted and it would need careful teasing out. Her current situation is not tenable long term and she is tied into a very difficult and unworkable arrangement on a debt.

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Just to state that my experience as a banker with MABs to date is very poor. I have not come across one case where they have added any value to a client's proposal. maybe I have just been unlucky!!!

44brendan, I'd agree they are separate issues and undoubtedly a solicitor is going to need to be involved. The reason I was saying MABS is that I think she needs to sit down and map out her financial situation. I don't think we can do it here effectively via a third party and I don't think a solicitor would be best placed to do it either. I am thinking that perhaps they will have the opportunity then to look at it holistically. It sounds as if they have been struggling on and trying to deal with it within the family and I wonder if they are missing out on some supports.