The beginning of a new year marks a fresh start and chapter, but unfortunately for some, this can include divorce or the dissolvement of a civil partnership. One of the biggest financial dilemmas you’ll face is deciding what to do with your family home. Andrew Milnes, business principal and mortgage adviser at Mortgage Advice Bureau Bingley (who we recommend to our clients requiring a mortgage), answers some frequently asked questions on the subject of home ownership and separation/divorce. Separating from your partner is an incredibly stressful time, so it’s important not to become overrun by your emotions. Don’t bury your head in the sand, speak to an expert adviser who can guide you through your options during what can be an extremely challenging period of your life.
If one of the parties wants to stay in the property but can’t afford the mortgage on their own there are several options available in this scenario, however, the first port of call is to check what benefits you might be eligible for. Once you have a better overview of your finances, you’ll be able to understand how ‘short’ you will be each month, if at all and plan from there.
It might be that your ex-partner can continue to support you and your family by paying spousal maintenance however, if that is not an option, you may have to consider selling your property.
Alternatively, a number of lenders offer DIY mortgage innovations which you may qualify for, such as those within Generation Home where a ‘Deposit Booster’ allows friends and relatives to invest in a property upfront and interest free. It’s ‘Income-Booser’ feature supports affordability by making it possible to add immediate family members to a mortgage.
If you can’t agree on whether to sell the house or not and you and ex-partner are locking horns over whether to sell the family home and you don’t believe it may be possible to come to a mutually beneficial agreement, you may get a court order.
In this instance, a judge will make the decision for you based on the facts presented to them. This can be a costly process in terms of time and money and is often stressful for both parties. It is possible to appeal against the judge’s final decision, however, there is a very strict time frame for this and it is likely that you’ll be left with significant legal costs if you lose the appeal.
There is the option of getting a mortgage on your own. Regardless of whether you are looking to re-mortgage or buy your ex out to invest in a new place, the sooner you get your finances in order the better.
Your employment status will also have an impact too, and if you’re employed, you’ll need to present documents when speaking to a broker including your last three months’ worth of pay slips, your last three months of bank statements, your last P60 and if you are self employed there may be other statements required.
If there are children involved in the separation/divorce, then ultimately the courts will always be to make sure any children under the age of 18 have a secure home to live in.
If you require further information for any type of mortgage, then please just give Andrew Milnes a call at MAB Bingley on 01274 568832.- https://www.mortgageadvicebureau.com/mortgage-advisers/main-street-bingley/meet-our-team/andrew-milnes
If you are considering selling your home and would like a free market appraisal then call David Phillip FRICS on 01134 676 400 w: davidphillip.co.uk 86, Leeds Road, Bramhope, Leeds.
David Phillip Estate Agents:- Covering Leeds, Bramhope, Cookridge, Adel, Otley, Pool-in-Wharfedale.