Posted in Family Law
It is with more than a little interest that we have read recently that lenders are in talks to introduce an innovative divorce mortgage to deal with people being forced to sell their homes after they split in later life.
It may come as a surprise to some that government statists show that the over-50s now account for the largest increase in the divorce rate with 28% of divorcing couples having to sell their home, according to the lender, Nationwide.
According to The Telegraph, lenders are now considering introducing a mortgage that will allow individuals to stay in their home after a split, even if they don’t have the financial ability to do so.
This “divorce mortgage” also known as divorce loans would allow someone to borrow enough money to buy their partner out for a set period of time, so one of them can stay in the home.
This scheme would be particularly useful for couples with children who don’t want to disrupt the family home, but would also work where there is mutual agreement about one partner being more suited to the property, for instance for work or financial reasons.
As yet, this mortgage doesn’t exist, but brokers say it could be introduced by the end of the year. Under the proposed plan, the lender would give the divorcee a lump sum, which they could use to buy their estranged partner out of the home.
As property and family law experts in London who see the complexities of divorce at first hand, we welcome anything that can help. Divorce affects many people and is a hugely traumatic event for everyone involved.
Right from the moment a marriage break down couples need help from everyone including good divorce solicitor who can help them through this difficult process.
We hope this mortgage will soon be available as we applaud anything that can make life less tough at a very painful time.