Division of Equity in marital home

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  • jackieblack
    jackieblack Posts: 10,316 Forumite
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    gingercordial wrote: »
    But it is effectively a remortgage with the same lender. They still need to assess the affordability of the single person (especially these days) though if that person passes it may not look like much has changed on the surface, particularly if there's no change to the amount borrowed ie not borrowing extra to pay off the other party. If the sole applicant can't pass affordability checks on their own there will be a problem.
    Yes, quite.
    But once they'd ascertained that I could afford the mortgage on my own, and the solicitor had got the necessary documents signed and completed the appropriate paperwork, the other name was literally simply removed from the account.
    (I worked for the lender on the first occasion I did this and watched my colleague key in the amendment, which involved literally highlighting and deleting the other party's name.)
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  • silvercar
    silvercar Posts: 46,962 Ambassador
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    jackieblack wrote: »
    :huh:
    This is exactly what I've done - twice! (Two different lenders, 25 years apart)

    Affordability criteria are much harder now. Lenders are obliged to satisfy themselves you can afford the mortgage payments on your own if interest rates rise.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Finst
    Finst Posts: 146 Forumite
    edited 5 July 2017 at 9:04PM
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    For Guest101 and GingerCordial, I can't point to any cases, this was simply the advice I received from my solicitor during my divorce (which didn't involve domestic abuse in any way, it was a theoretical discussion about what could and couldn't be allowed for).

    For tania19, you mention speaking to a barrister - it would be a solicitor actually, but I think that's the absolutely right thing to do.
  • tania19
    tania19 Posts: 6 Forumite
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    silvercar wrote: »
    Affordability criteria are much harder now. Lenders are obliged to satisfy themselves you can afford the mortgage payments on your own if interest rates rise.

    Thank you....my mortgage has been interest only since 2005 and currently £190.00 a month, however since Jan 2016 I have been making overpayments of £500 each month and now it is down to £97,000. I have made all the mortgage payments, plus £398.00 secured loan payments each month from my account.

    My earnings are approx £1800 take home. If I was to remortgage then I would not have to remortgage for the whole amount would I? I mean minus my share of equity if we say for arguments sake it would be a 50/50 split....

    Maybe I am wrong in my calculations......1st mortgage 97k ....secured loan 52k...total 149k....house value 300k minus 149k....leaves 151k....divide by 2 is 75.5k....

    So if I do not include my share of equity I would need to remortgage for approx 224.5k.....family could help me out with approx £80k.......that would leave approx £144k for remortgage...

    With my earnings and I could get my brother to join me in the remortgage I may get a mortgage for the 144k....also my mother has offered to be a guarantor for me, she has a mortgage free house worth approx 420k.

    I don't know ...just some figures that are running riot through my exhausted mind at the moment.

    Would be more simple to do a transfer a sale where as I could just pay my husband a lump sum and we could leave the mortgage and loan to me.......as he is not even talking to me and I have tried too many times in trying to reason with him I am not getting anywhere. He is enjoying tormenting me....so I am not speaking to him about this now........neither does my health allow it. I have responded to the divorce petition today....so will wait and see what steps he takes next.
  • tania19
    tania19 Posts: 6 Forumite
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    Just to say thank you to all who are posting on my thread....it really is helping...
  • Keep_pedalling
    Keep_pedalling Posts: 16,633 Forumite
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    edited 5 July 2017 at 9:59PM
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    You sound like the major bread winner, and if he is not earning then I would also assume the only one with any decent pension provision. If that is the case I would be somewhat worried about him getting his hands on some of that as well.

    Edit - If you have not already done so, get a new will drawn up without delay.
  • tania19
    tania19 Posts: 6 Forumite
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    Keep_pedalling wrote: »
    You sound like the major bread winner, and if he is not earning then I would also assume the only one with any decent pension provision. If that is the case I would be somewhat worried about him getting his hands on some of that as well.

    Edit - If you have not already done so, get a new will drawn up without delay.

    Thanks, but he is also working as a taxi driver self employed....always earned more than he declared if you know what I mean. I was thinking about getting a will and thank you for that. Maybe I should look into seeing what my remortgage options are.....and wait for what he says.

    He is not very educated and applied for divorce without solicitors....getting advice from his family and whoever else he can just to save money....and he thinks that everything will be over quickly....hes already told me as there are no children and its a long marriage we get 50 50.
    Good to know he has done his homework......I haven't got a pension so no worries there.
  • silvercar
    silvercar Posts: 46,962 Ambassador
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    Would be more simple to do a transfer a sale where as I could just pay my husband a lump sum and we could leave the mortgage and loan to me.......

    If you did a transfer of equity and paid him a lump sum, you would still need to remove his name from the mortgage. So the lender would still need to agree.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • jackieblack
    jackieblack Posts: 10,316 Forumite
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    silvercar wrote: »
    Affordability criteria are much harder now. Lenders are obliged to satisfy themselves you can afford the mortgage payments on your own if interest rates rise.

    Yes, I know. The second time I did this was 9 months ago.
    But if you meet the affordability criteria it is a relatively simple matter of simply removing the other party. A whole new remortgage is not always needed.
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter, south facing (-5 deg), 30 degree pitch, no shading
    Everything will be alright in the end so, if it’s not yet alright, it means it’s not yet the end
    MFW #4 OPs (offset): 2018 £866.89, 2019 £1322.33, 2020 £1337.07,
    2021 £1250.00, 2022 £1500.00, 2023 £1500
    Target for 2024 (offset) = £1200, YTD £345
    Quidquid Latine dictum sit altum videtur
  • jackieblack
    jackieblack Posts: 10,316 Forumite
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    tania19 wrote: »
    Would be more simple to do a transfer a sale where as I could just pay my husband a lump sum and we could leave the mortgage and loan to me.......

    Yes, it would be simpler, but the lenders have to agree (which they will do provided you meet their affordability criteria)
    2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter, south facing (-5 deg), 30 degree pitch, no shading
    Everything will be alright in the end so, if it’s not yet alright, it means it’s not yet the end
    MFW #4 OPs (offset): 2018 £866.89, 2019 £1322.33, 2020 £1337.07,
    2021 £1250.00, 2022 £1500.00, 2023 £1500
    Target for 2024 (offset) = £1200, YTD £345
    Quidquid Latine dictum sit altum videtur
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