Separation and House
Submitted by Legs11 on Mon, 22/03/2010 - 13:06
My husband and I separated a year ago. He moved out to live with a new partner and I stayed in the family home with my son. We have a joint mortgage to which he has contributed nothing for the last year, and the house is currently on the market. He is desperate for the money from the sale of the house and it is obviously taking longer to sell than he anticipated. He informed me yesterday that he is considering taking out a loan against his share of the equity in the house. If we have a joint mortgage, is he able to do this?
It is extremely unlikely that
It is extremely unlikely that your husband could raise money in this way.
Generally a lender would require security against the whole of the property. By that I mean the lender would expect to be paid out of the gross proceeds before the division between the parties.
For that to happen, because the house is owned jointly, you would have to sign the loan and charge agreement. I would advise you not to sign.
Thank you for the advice, it
Thank you for the advice, it has put my mind at rest!