Transferring a mortgage.. Help desperately needed.

[r_randall]

I am trying really, really hard to get my ex-partner off of my mortgage.. something that I have only just been able to srape the money together to do. Out of the blue I get a letter from her solicitor demanding half the equity if I transfer it into my name. As she moved out in 1997, I know that she knows that the house is worth quite a bit more than what we paid for it. I dont want to sell the house, as I now have a family and we will have nowhere to live obviously.. I am really, really upset about this as she has never paid a single penny towards the house. I have written to her today to find out where she expects me to find half the equity money from.. I just wonder what rights she has.. and am I stuffed as all my friends keep telling me.. ? And, if possible, can anyone tell me how much this is likely to cost her to force me to do anything ?

[Maud]

So that I can understand your problem more clearly, could you please post here an exact copy of the letter that you have received from the solicitor (leaving out names, addresses and any identifying things, of course !!). I will deal with your questions and cost estimates after I have read the letter.

[r_randall]

this is the latest letter: "Thank you for your letter dated 13th October enclosing a copy of a letter bearing the same date, addressed to our client. May we first of all request that all future correspondence is sent to our firm as our clinet does not wish to have any direct contact with you. We have taken her instructions on the contents of your letters and you appear to be under a misapprehension as to the position. If you read our letter dated 28th June once again, we pointed out on behalf of our client that she had been attempting to agree with you, since Mach 1997, either a transfer of the property at ********** to you, a transfer to her, or a sale. We do not propose to go into details about the nature of the negotiations between you; suffice it to say our client does not agree with the history as set out in your letter of 13th October. Since March 1997, the value of the property will have increased considerably and you have sole use of the property to the exclusion of our clinet. You have indicated in your letter that you propose to apply to the Halifax foe their consent to transfer the mortgage to you but, with respect, this does not make any provision for payment to our client of her interest in the property. We have advised her hat she is entitled to be paid a lump sum representing fifty per cent of the equity. The way in which this is calculated is to take the value of the property, deduct the amount of the outstanding mortgage and divide the balance. Our client thinks the house will be worth in the region of �60-�70,000 and the outstanding mortgage is in the region of �30,000. This would give our client a lump sum payment of �15,000 to �17,500 and that is without taking into consideration the fact that our client's father provided a deposit of �1,600 when the property was purchased and which our client would like to repay him and for you to contribute fifty per cent towards....

[r_randall]

.....We would be obliged if you could let us know if you are prepared to obtain a valuation of the property in order that we may advise our client as to the amount of an appropriate lump sum payment. She is obtaining details from the Halifax of the current amount outstanding in respect of the mortgage. She is also obtaining a surrender value of the endowment policy which, again, should be divided equally between you with you being reimbursed half the payments you have made in respect of the premiums since separation. May we please hear from you in response within the seven days as our clinet is extremely frustrated at the delays to date. Yours faithfully"

[Maud]

Thank you. In view of the figures and your own wish to conserve your cash as much as possible I will commence with the ball-park costs should you be unable to stop this matter going to Court (the solicitor is obviously preparing). If it goes to Court for an Order against you and you do not defend, whichever route your ex's legal team take will require 2 hearings @ �1500 each + Court costs and preparation, so, as it will be for you to pay the costs, you will be Ordered to pay �4000 - �5000 costs. If you defend, it will go for trial which will be in 6-12 months time and involve minimum costs on each side of �15000. As it goes along the Judge may Order you to pay the costs of some of the hearings within 10 days (�1500 each time), and may Order you to deposit in Court a sum to cover your opponents costs should you lose (at the very least �15000). However, �15000 each side is the very minimum, and I know of several where the costs were �70000 each side. The loser has to pay both sides costs, so if it was you you would be looking at a minimum bill of �30000 but likely to be much more. Returning to the undefended Order, if you do not pay the Order + the �4000 -�5000 costs within time, you will be made bankrupt and the house sold from under you.

[Maud]

Turning to the solicitor's letter, I must point out that you were asked to cease all further direct contact with your ex, but you have breached this. Have great care, because without warning the solicitor will go for a separate 2 year restraining Order (breach of which incurrs immediate jail) for harrassment against you which will cost you �1500 - �2000, and will also include a request that for any final Order to include a permanent restraining Order. From what you have said about it, you will find that your direct letter to your ex will be used against you as it will be construed as an admission that you owe the money.
It is important that the solicitor has considered all of your arguments and cannot see anything in any of them. The advice then given to your ex that she is entitled to 50% is very, very important to you, as it sets boundary back from which your opponent's legal team will now not move. In view of the very real danger of costs falling upon you as I have set out above, it simply is not worth the risk to you in further contending the matter. You should accept the settlement offered by the solicitor without further delay, as it is the very best deal that you are ever going to get from now on and if proceedings are commenced it will never be returned to. You should heed the time limit of 7 days and get in touch with the solicitor tomorrow to say that you are arranging the valuation he requests. At the same time, to avoid proceedings being served on you without further notice, it would be appropriate for you to tell the solicitor that you are contacting the Halifax to up the mortgage by �15000 - �17500 (which should be quite easy on the figures given) and to ask for  patience whilst you are doing this.

[r_randall]

Thank you so much for your help... Just a couple of questions will the fact that she has never contributed a single penny to the keep of the house during the mortgage (and I mean not a penny, she never even paid a bill), make any difference wahtsoever to the case? and do you think it may be wise to make her an offer of a smaller payment before I offer to give her 50% of the equity. Before writing the very first mail on here, I was thinking about offering her �5000, because the fact of the matter is the mortgage is �35000, and the house is probably worth �55-60000, so there will only be �20-25000 equity anyway, and after fees etc, she will only get around �8000 anyway I would imagine?!?! As she seems to be in such a rush to sort things out, I wondered where I stood on making this kind of offer as I can get her the money practically straight away if she accepts.. Any help would be great.

[r_randall]

I'm really sorry but I have two more uestions as well... I have several letters (from 2000-2002) from my ex which have no mention of a settlement, just that she wants her name off of the mortgage as quickly as possible. Is there any way that I can use these letters in my favour? And also does the fact that I have a child and what she could do could make my family homeless have any effect on what action her solicitor takes? The reason I ask is my close friend went through a similar problem a couple of years ago, and has urged me to go to court, because he lost his case (house) to her due to the fact that she had two children.

[Maud]

You are very welcome indeed to keep in touch with me regarding your problem for just as long as you think that any view from me will be of help. I am on your side, understand the matter completely, and am trying to chart a course that will avoid ruinous costs and the loss of your property. Everything that I have to say has been given a great deal of prior thought to ensure that it is not misleading. There is absolutely no legal way of getting you out of this without you paying about 50% of the equity. It is very important that you realise and concentrate upon the cold hard fact that the solicitor is expecting a cheque from you shortly of �15,000 to �17,500 plus �800. At the moment there is not a cat in hell's chance of getting the solicitor to accept �5,000. What you must do quickly (speed is of the essence) is (1) get a written valuation of the current value of the property. The valuation must be of what you can realistically expect to receive, not the asking price. Use a chartered surveyor if possible. Under no circumstances ask someone to undervalue the property - it leads to jail, and (2) get in touch with the Halifax and ascertain the exact amount of the remaining mortgage. Make sure that it is exactly the same figure as they have given to your ex. If you can do this tomorrow, Wednesday at the latest, with the firm figures in front of me I will then see if I can think of a tactic to get you through.

[Maud]

Replying to your specific questions,  but without going into detail as it would be too lengthy;

1. the lack of direct contribution to the mortgage or bills makes no difference. There is another compelling argument that takes the matter to 50/50.

2. certainly an offer may be appropriate, but not as the figures are at the momment as I have said above. When we have the firm figures in front of us I will guide you

3. the letters to which you refer will make not one jot of difference

4. forget about homelessness. We must try our hardest to get this settled, keep you out of Court and still happy in the same house.

[r_randall]

Ok.. Thanks for your help so far. I will get a valuation done ASAP and will ring the Halifax tomorrow. The only reason I suggested making an offer was due to a friend of mine in the finance industry. He stated that his mother took a payment in a very similar circumstance for �11,000 two years ago, when he states she could have held out for �35,000 (half the equity).

[r_randall]

Just one more question please, for now.. I dont mean to be dis-respectful in the slightest, because so far your help has been immeasurable, but can I just ask how much knowledge of these situations do you have?

[Maud]

It is perfectly acceptable for you to question my ability in your problem. However, I have no wish to push my views upon you and I now therefore withdraw.