Hi, looking for some help on this, my partner is looking to sell her house, her ex who is still on the mortgage has been in a trust deed since March 2012 (made final payment)He officially moved out of property in July 2012 and since then she has maintained the mortgage payments etc. If she sells her property before he has received discharge and for example makes ยฃ10k from the sale does her ex's Trustee have legal right to half of the equity ?
At time of separation there was no equity in the property (more likely negative equity)
thanks in advance
Hi, thankyou for reply, is this still the case even if he hasnt lived at property and made no contribution to mortgage payments ? My understanding was that it would be same as a marital split, his (or trustee) potential share of equity would be based on value/mortgage balance at point of seperation ?
Hi burns40,
As TDA has advised if the property is sold prior to the discharge then the Trustee can look for 50% of the net free proceeds.
I don't know anything about divorce or the entitlement but in my experience a Trustee under these circumstances will look for the full net free proceeds. It may be possible to reach an agreement over a 60/40 split for example if your partner is doing a lot of the work for the sale etc. Always work asking.
Also, the Trustee would need to sign the disposition to do with the sale.
The best thing to do is chase up the ex partners discharge and once this is received then sell the Property. If they have made their final payment then discharge should be received shortly. As an example we aim to discharge someone between 4-6 weeks after their final payment.
David is not currently posting in the Trust-Deed.co.uk forum
Hi, David thanks for the reply, my partner is speaking to her solicitor today to try and get this sorted.many thanks for your help