The end of any relationship is a difficult experience, but being financially tied to your ex by a mortgage in negative equity can make the situation much more complicated at precisely the time you want to move on and start rebuilding your life.
With more than 40% of marriages now ending in divorce and growing numbers of people depending on their partners to get on the property ladder, divorcing or separating while dealing with property debt is a situation more and more people will find themselves confronting.
There’s a common misconception that if a property is sold the negative equity amount is then split between each of you, but unfortunately this is not the case.
A lender treats each borrower the same, meaning that 100% of the debt is your responsibility regardless of who lives in the property or who makes the payments.
Thankfully, at Negative Equity UK, we can help. We have successfully negotiated hundreds of cases for clients who needed to sell a property in negative equity and negotiated a settlement with their lender to write down the shortfall from the sale.
We recently helped two clients, Julie and John, who had a property with an outstanding mortgage of £150,000. After divorcing, they both wanted to sell the house, but were only able to get £100,000 for it. We were able to negotiate with their lender to write off £43,000 of the remaining debt, leaving them with only £7,000 to pay off between them.
At Negative Equity UK, we’re not only experts in dealing with property debt, we also have years of experience helping clients who are struggling with difficult personal situations. Our team not only provide an experienced, regulated debt mediation service, we are also understanding and sympathetic whatever your circumstances.
So, if you are struggling with a property in negative equity or you are going through a divorce with property debt, take a look at our reviews and get in touch with Negative Equity UK on 0161 631 2727.