Nationwide - Remortgage / Removal of ex

Austinhead · 21 September 2017 at 1:00PM

Hi,

I am after some advice. I recently separated from my partner, we have a joint mortgage. I had the house valued and have given him half of the equity so I can take over the house.
The mortgage is currently with Nationwide as interest only and I have no way of repaying the capital (no comments needed on this thanks). I am on a BMR rate. I had been considering moving to a capital and repayment mortgage, probably fixed for 3 years, but have recently read that I might be better remaining on the BMR.

I need to remove my ex from the mortgage. Does anyone know the cost associated with this if I don't remortgage ?

Is it worth moving to a repayment mortgage, or should I stick with my interest only one but make over payments to the value of a repayment mortgage ?

I have recently repaid a chunk of debt, and my credit file isn't great - no CCJ's but defaults. I have another year before all of these drop off my file completely. Current debts now are only the student loan and a car loan.

Any advice gratefully received, this is new territory for me but i'm desperate to get this moving.

kingstreet · 21 September 2017 at 1:11PM

If you plan to remain with Nationwide and do a transfer of equity, you'll need to ask them their costs and establish what a solicitor will cost for the legal work involved.

Nationwide may require a move to capital & interest repayment in return for permitting the TOE.

You need to speak to them before you do anything else.

Austinhead · 21 September 2017 at 1:14PM

Something I didn't mention, but will probably be relevant, is that I received a letter from land registry last week informing me that a debtor of my ex's has applied for a charging order on the property - I will obviously be objecting to this (posted on separate thread for advice).

Will this need to be cleared before I can progress ?

kingstreet · 21 September 2017 at 1:20PM

If the property is jointly owned and the debt is solely in his name, it's a restriction, not a charging order. More here;-

http://forums.moneysavingexpert.com/showthread.php?t=1839539

However, it may be an issue if you are attempting to alter the ownership of the property which a transfer of equity does.

This is heading in the direction of a requirement for legal advice, rather than just about mortgages.

Austinhead · 21 September 2017 at 2:02PM

The debt is solely in his name. The documentation I had through mentioned a charging order though ?

Land_Registry · 21 September 2017 at 2:14PM

Austinhead wrote: »

The debt is solely in his name. The documentation I had through mentioned a charging order though ?

If they have obtptained a charging order against your partner then they are looking to protect that interest through noting it against the property. Invariably that is as a form K restriction as kingstreet posts

The notice from us explains what has been applied for and options available to you re the registration process. As kingstreet also posts its legal advice you need now as you need to clarify if you have grounds to object. And advice in what happens next re transfer of equity/remortgage and how the CO now impacts.

For example having given him say half the equity but as yet not transferred the legal ownership is very unlikely to be grounds for an objection. The creditor is dealing with what's registered rather than any intent on the part of either owner here.

Austinhead · 21 September 2017 at 2:22PM

Land_Registry wrote: »

For example having given him say half the equity but as yet not transferred the legal ownership is very unlikely to be grounds for an objection. The creditor is dealing with what's registered rather than any intent on the part of either owner here.

This is deeply concerning for me. This implies that his debtor would still be entitled to half the equity despite me already giving the money to him !!

This kind of situation is difficult because until i give him his half of the money, he could refuse to sign anything that transfers the house ownership over to me.

kingstreet · 21 September 2017 at 2:40PM

Perhaps you can have a solicitor supervise the repayment of the debt and removal of the charge from his share before he is paid the remainder?

Land_Registry · 21 September 2017 at 3:29PM

Austinhead wrote: »

This is deeply concerning for me. This implies that his debtor would still be entitled to half the equity despite me already giving the money to him !!

This kind of situation is difficult because until i give him his half of the money, he could refuse to sign anything that transfers the house ownership over to me.

So you need legal advice on whether you have legal grounds to object to the current application. And you need legal advice in how the CO impacts on your efforts to buy him out/transfer the ownership

The link kingstreet gave you is a very useful kind as to how COs play out with debtors/creditors and the impact on property ownership.

Nationwide - Remortgage / Removal of ex

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