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How Leaving Finances To Her Husband Left Laura £1M In Debt And Cost Her Home And Her Marriage

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However, I was concerned enough to speak to a friend, who said the best way to deal with a debt was to take out a mortgage, so I decided to suggest this to Michael.

‘We’d bought our house in the mid-­Seventies for £48,000, and I believed we’d paid off the mortgage. I reasoned we would need only a modest new mortgage to pay off the overdraft.’

It wasn’t long, however, before it emerged how misplaced Laura’s new optimism was.

‘When I told Michael my plan, he told me we couldn’t remortgage because we were already mortgaged up to the hilt. I felt my stomach lurch.

‘I asked him how big the mortgage was, but he wouldn’t tell me. I had to know, though, so I asked again and again. Eventually, he looked straight at me and said: “£500,000.” At this, I ran up to our bedroom and sobbed.’

‘He sat down with Michael and me and he assured us: “I’m sure we’ll be able to save your house.”

‘But when he started adding up the figures, he said: “Actually, you have a mortgage of £850,000.”

‘Michael then admitted he had lied about the extent of his borrowing. He had managed to keep this awful secret for ten years, but his eyes were vacant, emotionless.

‘I couldn’t imagine why or how he had accumulated so much debt, but bit by bit the truth came out. For years, I learned, although I didn’t realise it, we had been living way beyond our means.

‘I couldn’t bear the thought of losing the house — I loved every corner of it and was determined to fight for it — but I had a dreadful sinking feeling. And my last vestige of hope crumbled when Michael was forced to admit he had also borrowed to the limit on no fewer than 30 credit cards.

‘Apparently, he’d been paying off the minimum on each one for years, and owed another £150,000. Every time a bill had arrived, he’d taken the paperwork to his office, so I had no clue about any of it.’

Meanwhile, a multitude of questions were flooding into Laura’s mind. Although the house was in Michael’s name, he was legally obliged to get Laura’s consent for a remortgage.

Read more: http://www.dailymail.co.uk/femail/article-1324064/Laura-Stradler-left-family-finances-husband-left-1m-debt.html#ixzz13ZA38iuY

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‘But I couldn’t hate him. Actually, I now think of him as a victim.’

and

They were blessed, too, with a grown-up son and daughter. Nicole, a hedge-fund manager, and Anthony, a film editor, had progressed seamlessly from private prep schools to good secondary schools and then through university.

Someone will have to pick up the tab for all of this theft.

I'd pack the hubby off to a debt-prison. (What do you mean, they don't exist anymore....???) B)

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Did she never think to ask where the money was coming from to fund their lifestyle?

Unless he lied about how much he was earning, of course.

Today, having lost everything, Michael is paying off his debts at £1 a week.

another one for deep pocketed Brits to pick up, i also noticed she spent her proceeds on a flat for the son, probably via a deed of Gift, she must have a good welfare /tax planner for an FA

Edited by Tamara De Lempicka

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I'd pack the hubby off to a debt-prison. (What do you mean, they don't exist anymore....???) B)

I'd pack the bank manager off to prison myself.

But what drove him to lie to his wife? Michael agrees to meet me to tell me his side of the story. He says that the trouble began when he took the new job in 1997.

‘I trusted my boss — and so-called friend — to pay me the bonuses and profit-share I thought were promised to me,’ he says. ‘Even when they failed to materialise in the first year, I believed I’d be paid eventually.

‘When they didn’t, I went to my bank manager and said: “I have a problem. I can’t maintain my lifestyle.” He said he’d help, and I got an initial remortgage of £100,000 to tide me over.

So the bank manager had a meeting with a customer who says he cannot maintain his lifestyle, and his response is to put him further into debt. Even if the husband is lying the manager should have done some basic checks which would have revealed the extent of the problem very quickly.

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So she rode a meal ticket for 30 years and when the free life of luxury ran out she divorced hubby and took half the sale proceeds?

Which bit is the stupid cow moaning about?

For richer for poorer

Edited by Frank Sidebottom

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Bought in the mid seventies - £48,000

Alleged value now £1.25m

Inflation calculator (http://www.thisismoney.co.uk/historic-inflation-calculator) says

£48k from 1975 is equivalent to (wait for it.....)

£367,680

from 1971 it is

£546,240

from 1979 it is

£203,040

Actually I now see in the article it sold for £800k. £1.25m is estimated peak price

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I'd pack the bank manager off to prison myself.

So the bank manager had a meeting with a customer who says he cannot maintain his lifestyle, and his response is to put him further into debt. Even if the husband is lying the manager should have done some basic checks which would have revealed the extent of the problem very quickly.

It was because of the loans that a) the bank manager got his bonuses B) spending in society took place c) the whole system revolved around liar loans.

The manager did his job and did not question the applications. Why should he? That, er, wasn't his job...

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Bought in the mid seventies - £48,000

Alleged value now £1.25m

Inflation calculator (http://www.thisismoney.co.uk/historic-inflation-calculator) says

£48k from 1975 is equivalent to (wait for it.....)

£367,680

from 1971 it is

£546,240

from 1979 it is

£203,040

48000 in 1975 = 300k in 2009 http://www.bankofengland.co.uk/education/inflation/calculator/flash/index.htm

what HPI?

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The upshot is that she/their kid seems to get half the value of the house when she/the kid got half the benefit (via their lifestyle) of her husband's reckless borrowing. Where's the fairness in that?

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Trying to figure out how she got any money from sale of the house.

Mortgage was 850, place sold for 800.

It looks like there was a remortgage, and she as an existing occupant didn't give her consent, which means she had an overriding interest. So the lender, having lost its case that she conspired in the dodgy borrowing, decided to buy her out of a lifetime right of residence.

Lenders get screwed on the overriding interest - they have to make inquiries about who's resident before providing the loan, but the courts practically demand perfect knowledge on their part. Granny in the attic, and all that. In this case looks like the lender didn't bother, or didn't care.

edit: lender instead of borrower.

Edited by okaycuckoo

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...his petite and glamorous wife, who drove a BMW, was an accomplished homemaker...

:blink:

Christ, if she is petite i'd hate to see fat and that 'BMW' is a 15 year old 3 series!

Just how did they buy a house for £48k and end up with a £850k mortgage, seriously greedy greedy boomers! I think this article sums up alot of stuff that is wrong in the UK

- Excessive greed

- Extreme MEWing

- Lazy wife who doesn't pull her weight and acts dumb

- Disloyal wife, sticks with him in the good times but as soon as the s*** hits the fan she runs off stealing what ever money was left

- Believing that property is the be all and end all

- Believing that material objects bring you happiness

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I'd pack the bank manager off to prison myself.

So the bank manager had a meeting with a customer who says he cannot maintain his lifestyle, and his response is to put him further into debt. Even if the husband is lying the manager should have done some basic checks which would have revealed the extent of the problem very quickly.

nonsense...we have no subprime in the UK.

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Christ, if she is petite i'd hate to see fat and that 'BMW' is a 15 year old 3 series!

Just how did they buy a house for £48k and end up with a £850k mortgage, seriously greedy greedy boomers!

I think this article sums up alot of stuff that is wrong in the UK

- Excessive greed

- Extreme MEWing

- Lazy wife who doesn't pull her weight and acts dumb

- Disloyal wife, sticks with him in the good times but as soon as the s*** hits the fan she runs off stealing what ever money was left

- Believing that property is the be all and end all

- Believing that material objects bring you happiness

Not all boomers, please.

It took us 10 years (any many sacrificies) to clear a 25 year mortgage!

I think this article sums up alot of stuff that is wrong in the UK I totally agree with that summary though.

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Actually I now see in the article it sold for £800k. £1.25m is estimated peak price

So it's risen from 20-25 * average household income to ... really not so far off at all!

Interesting.

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article-1324064-0BC8ABB6000005DC-772_468x331.jpg

We'll he didn't spend it on cars. That BMW is only worth £1000, if that.

Where's the Range Rover Vogue?

No, no, no.

That's the new owner's car.

The Vogue is sitting on a windy forecourt somewhere depreciating by £1 an hour.

If only Stradler was repaying his debts that fast.

BTW the Mail did publish my 'Only idiots think property will bail them out' comment. So credit where its due.

Maybe some Mail journos are looking to ride the next property wave? No! <slaps wrist> I must not be so cynical.

Something doesn't add up here though. Even in the better parts of London £800k is pushing it a bit for that house. It doesn't look that well maintained. The roof is a bit rough in places and the drive is a bit tatty. If it was in a Stockbroker avenue then surely it would be immaculate?

And they would keep the house they were MEWing like mad from in good order, wouldn't they?

Maybe its a library pic.

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You might be right. It's a HpC STR then who bought with cash, who drives a 15 year old car. Mines 8 years old BTW.

Theres probably baked beans stacked 5ft high in the garage!

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Michael, always immaculately dressed, worked in the clothing industry; his petite and glamorous wife, who drove a BMW, was an accomplished homemaker and hostess.The couple enjoyed annual trips to Royal Ascot, first-night theatre visits and regular holidays abroad to chic resorts such as St Moritz.

She has lost all the trappings of her prosperous middle-class life

I would earn a middle class wage, but the last time I checked, I don't own a £2 million gaff, drive a BMW, or don't holiday at St. Moritz.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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