Ex-partners and negative equity

A reader from Wiltshire wants to know whether her partner has to pay his ex money for a property they bought together a couple of years ago.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem.

Emma from Chippenham asks:

My partner is due to give his ex £3000 that she put into a flat they originally bought together roughly two years ago. We are now living in the property and have just had the flat valued. It is worth £10,000 less than they paid for it so it has just gone into negative equity. Does he still have to give the whole amount of £3000 to her as if we sold it she wouldn't get anything anyway. He has been paying the mortgage himself for the last two years but her name is still on the mortgage. We really need advice on this one, thanks.


Tony Davis,Mortgage Meadow Limited, says:

If the money your partner is due to pay back to his ex-partner is court ordered then yes he will have to pay it even if the property is in negative equity. As long as his ex-partner is on the deeds of the property and named on the mortgage, she is entitled to her share of the property but is also liable for the mortgage debt.

You may want to take legal advice, as a solicitor can advise you on how to remove the ex-partner from the property deeds by way of a transfer of equity.

I hope this helps.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority.