When I first found out about the affair and my ex left, my house was the same price I bought it for. Result…no equity to split with her. However, she then took so very long to sign papers and finalise the divorce the house market has recovered. Recovered so much in fact my house has a value of £195,800. My mortgage is roughly £165,000 meaning an equity of thirty grand.
The excitable amongst you will now raise a beer and say “yay, you have cleared your debt”.
Not so my friends, and here is why. Firstly, my ex still hasn’t asked for her half of the equity so £15k would be hers. The reason this never happened is because the children still live in the family home 4 nights a week and was informed if she took the money I would be bankrupt and thus homeless. She doesn’t need the money either right now on account of being looked after financially it seems!
Secondly, to get equity from a property you need to remortgage. This is a no no as my credit history is now appalling. Oddly when I took out the mortgage 8 years ago my credit score was superb, so good in fact if I applied for anything credit related the people would bow as they said yes! I joke of course, but it was good.
So, I am actually worse off. If my ex did her own research she would realise there is more money in the home than she realised. Luckily she is pre-occupied but for home long?
But what if I declared bankrupcy? yes I would lose my home but the equity would completely clear the debt and I could start again. That is a very very attractive option and one I would welcome had I not had children. This is their home, I made sure I kept hold of it after sound advice from a child psychologist and the children themselves wanted to “stay in our family home”.
I suppose this isn’t totally bad news, at least if I do have to go down that route of putting my hands up, extending my middle finger to the Inland Revenue and going bankrupt, I know the debts will be paid off. But I am still fighting to avoid that as you know
What I would like, from the government, is some sort of law where if two people have a joint mortgage and the relationship goes sour, that the mortgage should not be affected when the other person is taking off the house ownership. I mean, why does the mortgage company care how many people live in the home if the mortgage is being paid? In my case I paid every single payment yet they won’t give me the mortgage in my name. Makes no sense at all.
Couples are the creditors favourite, but try to get the same approval as a singleton? No go I am afraid.
Time to shred that new valuation!