Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 20/08/2010
My wife and I separated 3 yrs ago and she has applied to the Land Registry under LRA 2002 to protect home rights under FLA 1996. First what does this mean and secondly, if I sell the house of which I am the sole name on the mortgage will she be due any of the profits?
Categories: Legal matters, Separation or Divorce
Posted on 12/07/2010
My husband has moved out of the property we jointly own and makes some payment towards the mortgage. We have two children together and are married. I just need to know if he should legally be paying maintenance for his children in addition to the payments he makes towards the joint mortgage?
Categories: Legal matters, Separation or Divorce
Posted on 04/06/2010
I just got a police caution for a breach of a byelaw and it is non recordable.
Would this be a problem with some lenders?
Categories: Legal matters, Special circumstances
Posted on 02/06/2010
I would like to buy my mother and father inlaw's house with my wife. What is the situtation if one or both required a care home or 24 hour care after the purchase, can the goverment demand that I sell the property to fund their care?
Categories: Legal matters, Mortgages in retirement, Special circumstances
Posted on 14/05/2010
I paid off the outstanding balance of my mother's mortgage about 20 years ago. Can I claim an interest in the property?
Categories: Legal matters
Posted on 27/04/2010
An estate agent has advised me to pay part of a property with cash so it does not affect the 10% difference in the sale price and the valuation (that counts as our deposit). Is this legal?
Categories: Legal matters, Special circumstances, Tax issues
Posted on 27/04/2010
Myself and my Ex partner have a morgage together. We seperated approx 1 year ago, but due to the downturn in the market at the time decided to keep the mortgage going until there was a better selling environment. Subsequently she has ceased paying her half to the current tune of £6000+. Although I am keeping up the payments money is now a real struggle.
Is there any way to either force her to pay her way or alternatively once the property is sold could I make a claim against her for withholding her share of the mortgage payments?
I fear that her blase attitude towards her future credit rating stops her paying and I don't want to plunge myself into debt with no way of recouping at the end.
Categories: Legal matters, Separation or Divorce
Posted on 19/04/2010
I have lived in the property for 12 yrs approx and bought it approx 7 yrs ago joint with common law wife...where do I stand on moving out, do I have to pay full mortgage or half?
Categories: Legal matters, Separation or Divorce
Posted on 18/04/2010
MY PARTNER IS TAKING OUT A MORTGAGE FOR OUR FIRST HOME. I CANNOT GET A JOINT MORTGAGE BECAUSE OF MY CREDIT RATING. IS THERE A LEGAL DOCUMENT WE CAN SIGN SO I OWN HALF THE HOUSE AS I WILL BE CONTRIBUTING?
Categories: Legal matters, Special circumstances
Posted on 30/03/2010
Can I get a mortgage when theres a section 106 on the house????
Categories: Legal matters, Special circumstances
Posted on 30/03/2010
Can my name be taken off the mortgage without me knowing? I have just found out that my ex has taken my name off the mortgage account (we still own the house jointly) and told our mortgage advisor that this house is a buy to let. I was not aware until now and is this legal?
Categories: Legal matters
Posted on 25/03/2010
I am first time buyer and i am in the process of buying a house in my name. I have a new girl and she will be moving in with me when i have completed the purchase. With it being a new relationship i am not getting a joint mortgage. My girlfriend will pay me money for the rent and we will be dividing the bills. In the event that things do not work out and we split, what is the legal stand point. Would my girlfriend be able to claim any money from me for the payments made?
Are they are forms or agreements i should get her to sign before she moves in to cover myself.
Categories: Legal matters
Posted on 11/09/2009
My ex wife and myself seperated 18 months ago and divorced a year ago. No children both working full time marriage only lasted 2 years. She is living in the jointly owned marital home I have still paid half the £1250 per month mortgage. We put the property on the market and she refused one offer the estate agent advises we have to drop the price to sell which I am happy to do. My ex will not drop the price so she is living in a detached house and I am paying over £7000 a year for her to do so. I am trying to move on and need to sell. I also put £55k of my own money from the sale of my previous house into the property she put nothing in but also wants to claim half of this £55k plus a half share of any equity. Mortgage is £245k property on market for £349k agent advises to drop to £325 - £330k she would not accept an offer of £335 made 3 months ago. She says that she cannot afford to buy me out. I am paying £600 a month for a property I do not live in plus money to rent doe myself and I do not have £180 an hour for a solicitor to take this to court. Please help Many thanks Jack
Jack,
This problem is not one a mortgage broker can solve for you as any dispute such as this requires expert legal advice, which I recognise is expensive. I would expect the divorce settlement to have specified how jointly owned property, such as the matrimonial home, should be dealt with.
If it did and it specified that the property should be sold but left some flexibility on the timing and you consider that your ex wife is unreasonably withholding her agreement to accept a fair offer I think your only option is to go back to your solicitor. This will cost your ex wife money as well as you because your solicitor will almost certainly insist on dealing with her solicitor. Therefore if the two of you can resolve this amicably without recourse the law it will save both of you money.
Categories: Legal matters, Separation or Divorce
Posted on 03/04/2009
I have equity of 130000 in a property valued at 150000. I want to buy a second property to retire to in 3 years when I will be 60. In the meantime I would like to rent out this second property.
I have an income of £48000 and will have a final salary pension of £20000 + 60000 lump sum when I retire.
Should I buy the second property on an interest only mortgage to keep repayments down and settle the balance when I sell my existing property or is there another way?
Thank you.
Barbara,
Your suggested way of structuring this is eminently sensible. The maximum you can currently borrow on a Buy to Let (BTL) mortgage is 75% of property value but you will get a much better rate if you but down a bigger deposit and you will then also have a much wider choice of lender.
Therefore, unless you have enough savings for the deposit it will probably make sense to borrow some of the funds required on your existing residential property, also on an interest only basis. You will also be able to borrow at a cheaper rate this way.
You will still be eligible for tax relief on the interest providing you can show that the additional borrowing on your residential property is used to buy the new property. The best way to do this is to make sure the funds stay with your solicitor, who can then use them as part of amount sent to the vendor’s solicitor.
If you would like more specific advice, including tailoring how much to borrow on each property, please call us on 0800 71 81 91.
Categories: Buy-to-let, Interest only vs repayment, Legal matters, Remortgaging, Tax issues
Posted on 11/02/2009
MY PARTNER HAS BEEN DIVORCED JUST OVER A YR BUT STILL HAS A JOINT MORTGAGE AND DEEDS TO A HOUSE HIS EX STILL LIVES IN. WE ARE SET TO MARRY SOON WILL THIS POTENTIALLY AFFECT ME OR WOULD I BE ENTITLED TO ANY OF THE HOUSE. IF WE HAD A CHILD WOULD HE/SHE BE ENTITLED
How the previous matrimonial home, and the mortgage thereon, is to be dealt with will have been part of your partner’s divorce settlement. I presume, as you are asking this question, you haven’t yet seen a copy of the financial arrangements. I suggest you ask your partner to show you copy of the divorce settlement so that you know what his financial commitments are in respect of his previous wife and any children, as well as the terms of his entitlement, if any, to any share of his previous property.
Whilst he remains on his previous mortgage your joint ability to obtain a mortgage will be inhibited as any new lender will require your joint income to be sufficient to cover both mortgages. If your partner is paying maintenance that will also be taken into account when a lender assesses how much they are prepared to lend.
In view of this if you want to buy a property and you have a good income you may be able to obtain a larger mortgage by buying in your sole name. There is no reason why your partner can’t contribute towards the mortgage, even though he will not be a party to it in these circumstances.
Categories: Legal matters, Separation or Divorce, Special circumstances
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.