A 2nd charge on property

[after the storm]

After 4 years separation I have been to the bank to discuss taking out a personal mortagage for the remaining amount ...in my name and taking my husbands name off the deeds (I do pay the mortgage). He has suggested that take out the mortgage and get my husband to take a 2nd charge on the house for 50% of the equity when the house is eventually sold. Would this work if he was in agreement ??

[JustinN]

I think what you are suggesting is -

1 - You take over ownership of the property and responsibility for the existing mortgage debt

2 - Your husband has an (agreed) 50% share in the current equity that he is to receive when the house is sold

3 - His interest is to be protected by a second charge over the property

If so, yes, that would work. Aspects to consider are -

(a) An informal arrangement is not necessarily binding: it is only binding if it is the result of a court order on divorce or judicial separation

(b) You should seek full advice from a family/matrimonial lawyer to ensure all aspects are covered; eg: you may be content that your husband is entitled to half the net value of the house, but have you considered your entitlement in respect of his pension rights (if any)?

(c) Assuming you proceed as planned, you need to decide whether your husband will have 50% of the increased/reduced equity resulting from house price fluctuations between now and the sale of the house

I hope this helps. The main thing is to take full advice