Ex-wife renting FMH

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    Ex-wife renting FMH

    A bit of a strange request of advice......

    I've recently found out my ex-wife is renting our former matrimonial home and has not had permission from the mortgage company.

    As part of the divorce settlement she was given the house however I am still named on the mortgage. She initially contacted the mortgage company who agree to the mortgage being changed to a BTL however there was a few criteria she couldn't meet. (not having a job was one of them).

    I spoke with the mortgage company and explained we are divorced and the house has nothing to do with me, but understand I am still responsible for the mortgage. I asked the "hypothetical" question to the adviser 'what would happen if she rented the property out without your permission' and it seems I would be the one to face the consequences!!!!

    She has rented the house out about 3 months ago without any sort of AST, BTL insurance etc and I'm very worried this is going to come back and bit me.

    Any help or advice welcomed...

    #2
    The "worst" consequence would be the mortgage would be called in.
    Which presumably would mean the sale of the property to pay off the mortgage.

    Which doesn't sound like the end of the world for you...

    You'd have difficulty getting a mortgage in future, but I imagine that's true now.
    Last edited by jpkeates; 13-12-2016, 20:24 PM. Reason: afterthought
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      I would be getting legal advice as to regaining your right to the property.

      I am assuming she was allowed to keep the house as part of your divorce in order to ensure any children weren't made homeless. I doubt it was ever the judges intention that she could make an income from its rental.

      Comment


        #4
        IMO OP has no legal Right to Property, the Divorce Court has divided matrimonial assets, so wife alone is resp for paying mortgage and subject to all future mort conditions from date of divorce settlement.
        Did OP get advice from Lender's Legal Dept?
        I would suggest Lender has not given permission for the property to be rented on current Mort. by anyone.

        Comment


          #5
          Thanks for the replies. I agreed to her keeping the house as part of our divorce however there was no mention of her renting the house. Having spoken with the mortgage lender I was told she could not rent the house 'as is' and if she did I would be responsible.

          I have no problems getting mortgages but my fear if I told the mortgage company what she was doing would cause repercussions for me in the future with BTL mortgages.

          It's a really difficult situation for me. I was hoping someone may have been down this route before and could advise on the best route to take?

          Comment


            #6
            Is she living in the property with the 'tenant'?

            Comment


              #7
              No, she is living with her new partner.

              Comment


                #8
                Thought I'd give an update....

                Spoken to the mortgage company and told them exactly what was going on. After being on hold for 5 mins so the call taker could speak with her manager, they informed me that as the mortgage was being paid on time and there were no issues it would be easier for them to turn a blind eye than to start trying to evict tenants.

                Makes you wonder??? Food for thought!

                Comment


                  #9
                  My god, that's terrible!.

                  What if you now want to remove your name from the mortgage as you want or have no part of it?

                  What was agreed in the divorce?

                  Comment


                    #10
                    The divorce agreement was the wife to retain the home and once sold she would retain all the equity. At no part was it agreed she would rent the property.

                    I have no issue with her renting the property provided it is all done correctly and above board.

                    I couldn't believe it when the mortgage company said they wouldn't pursue anything provided the mortgage continues to be paid. Makes a mockery of the whole BTL system!

                    Comment


                      #11
                      A lender is a business and as such makes business decisions. If the mortgage is paid and the situation does not change the risk of that changing then it is not unreasonable for them to do nothing.

                      If you are liable for the mortgage you may want them to put that in writing, though.

                      Comment

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