Posted on 16 February 2010 by Gemma Anderson
My partner and I are renting but want to buy but he still has a place with his soon to be ex wife, the divorce is just going through now and nothing to do with the house has been put in it, she has two children of the marriage living with her, can we get a valuation and sell up and split any profit or do we have to stay on mortgage until kids are adults?
I am surprised that nothing has been put in place with regards to the existing property and mortgage between you partner and his wife. In the normal course of events the property would either be sold or transferred into one parties name and the other partner released from their mortgage covenants. I suggest that you speak to your partner's solicitors to check this. It is possible that your partners wife does not earn enough to support the existing mortgage on her own, in which case the lender is perfectly entitled to refuse to release your partner from his obligations.
If you are looking at buying a new property together, Lenders will look at any outstanding mortgage and treat it either as a credit commitment, deducting the monthly payment from your incomes before calcualting affordability or they will add the total mortgage debt to the new mortgage debt and check your incomes are sufficient to cover both. They will also look at a maintenance agreement and take this into account when calculating the amount they will lend.
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 necessarily 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.