Divorce settlement/mortgage

Hello..

Here’s an overview of my situation.

- Divorce settlement agreed via mediation
- ex wife is staying in family home
- mortgage in solely my name
- value of property £200k
- mortgage remaining £100k
- eqiuity therefore £100k

Taking into account pension and assets she has agreed in principal to buy me out and take in the mortgage of £100k for a clean break and I keep my pension etc..

However she is asking for the equity to be transferred into her name so she can afford a £100k mortgage which is right st the limit of what she can afford. This is where I am confused...if it were a joint mortgage then would the transfer of equity be the correct way to do it?

But seeing as the mortgage is in my name only then the whole but out process should be treated as if I am selling her the house for £100k to her and no need to transfer any equity?

I have a solicitor and he has advised me that I need to look at it as if we were strangers and I were selling the house to my ex and the whole process should go through simultaneously as a normal house sale etc.. but he is expensive which is why I am asking advice on here first before going back to my solicitor to clarify.

Thanks in advance.

Comments

  • TBagpuss
    TBagpuss Posts: 11,203 Forumite
    First Post First Anniversary Name Dropper
    Which part don't you understand?
    'transfer of equity' is the term that's usually used when a property is being transferred in this sort of situation.

    The key issue is to make sure that you are both clear about the practicalities - i.e. is your wife simply borrowing £100K, so she had the house with £100K equity and you keep your pensions but don't get a capital lump sum, or are you expecting a cash lump sum as well.

    Don't get hung up on how it is described, just make sure you're clear that the terms you agreed are reflected in the order and that your conveyancing solicitor knows the terms agreed.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
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