can i transfer name on deeds without changing joint mortgage

tommo06

please please help me..... i am in a middle of a breakup and my wife wants to put the mortgage into my name only and pay her off £20,000. problem is i am self cert with a brilliant accountant who saves me a huge amount of money from the tax man which shows my profiit at end year at only approx £10,000 when in reality i earn at least £30,000. i have explained to my mortgage company accord and they have said that i would need to show at least £25,000 to apply for a mortgage in my own name. now my accountant is brilliant but not that brilliant besides that i would have a massive tax bill which i know could well break me. reason is that i would need to make a finance commitment to wife each month to pay her off. the house is worth £145,000 and we have a ballance of £110,000 on mortgage. is at all possible for me to leave things as they are and i pay the mortgage but pay her off £10,000 lump sump and the other £10,000 in monthly payments without her making a claim on the house in the future. if i have say a legal document drawn up by a solicitor outlining our agreement and i would take full responsability for the mortgage e.c.t also would it possible to take her name off the deeds . please help all or some info woulkd be greatly apprieciated in my time of need. thanks tom.

itsgototstop

http://forums.moneysavingexpert.com/showthread.html?t=202234

this thread is similar, have a read

feisty1

Why do people think this is a site to assist with tax evasion?

shaven-monkey

tax avoidance is not a crime :P

tommo06

feisty1 wrote: »

Why do people think this is a site to assist with tax evasion?

what are you trying to accuse me of, which is so wrong of you to do without even asking me first if this was the case.
my accountant works for a globle body which does work for the gov including !!wait for it!!!! the tax office!!!!! he is a personal friend that helps me save a huge amount of money quite legal and above board in line with gov tax rules!!!! at least i dont claim for tvs and redecoration of this and that like some of our mp's and also not to forget there 500 pounds lunches. this is my first time on this site as i have only just joined and my question was my first one , so with people like you posting nasty unfounded quotes maybe this is not such a good site or maybe we good people should get together and complain to have you removed for saying things that are not true.

feisty1

Tommo06: shall I quote from yr first post "shows my profit at end year at only approx £10,000, when in reality i earn at least £30,000."
Quote: so with people like you posting nasty unfounded quotes maybe this is not such a good site or maybe we good people should get together and complain to have you removed for saying things that are not true.???? Who is involved in telling "untruths"
Quote: "besides that i would have a massive tax bill " ............Oh shame, if yr business is earning the money WHY shouldn't u pay yr taxes??
U r unbelievable, u have thanked the previous "tongue in cheek" remark (:P) "tax avoidance is not a crime
You don't want to pay yr taxes as " i would have a massive tax" (for yr info, 30k never resulted in a massive tax bill).........so u have originally self certified to obtain yr mortgage and now up want someone to "help" u to "find a way" (mortgage fraud) to release equity!!!!
By the way even with an income of 25k, the income multiples used by Accord would not allow you to obtain the figures you want ( income £25,000 x 3.25= £81250), ....also the figures you want to achieve, would take you to 90% LTV & Accord only lend up to 75% LTV....You will not obtain a 90% LTV Self Cert Product from any lender

getmore4less

IF you have a look at the other thread it covers the mortgage angle.

Even if you can get an agreement in place for the equity/mortgage with you paying the mortgage, while she is still on the mortgage that leaves her with a problem should she want to buy since getting another mortgage would be an issue for her. In many cases this can get a bit sticky when the OH moves on and another party gets involved and find baggage means they can't make independant decitions..

I think you realy need a solution where you have as clean a break as possible to avoid any future issues.

If your accounts only show a profit of £10k are you not entitled to tax credits? Have you checked that you are claiming all the benifits you can this could raise the income but probably still not enough to go it alone on the mortgage.

Another solution to look at is if you have any family members that can help with funding, allthough they would need to be very happy that your business is not going to get hit with this down turn.

Is there any way the business can borrow to cover some of the money needed, this will probably be more expensive but might be enough to allow you to mortgage the rest.

Another option is to sell up and move on, the reality could be that the house is not worth as much as you think and you end up giving the wife a lot less or even nothing.

silvercar

Self certificate mortgages were designed for your case exactly, where income is minimised on paper to minimise tax liabilities. Sady the system was abused and used by many for lie-to-buy, hence the lenders tightening up.

One approach may be to see if your bank will lend you the money as they see the ins and outs of your bank account. Even so I doubt anyone will lend that high a LTV or that high a multiple of your true earnings.

It is possible to transfer the house into your name but keep the mortgage in joint names. This solves half your problem, but leaves your wife jointly liable for the mortgage, which she may not want. A solicitor may be your best bet, to sort out a new framework for the property ownership. It is going to be difficult to remove your wife from the mortgage without adding a replacement onto the mortgage liability.

Tiddler_2

feisty1 wrote: »

Tommo06: shall I quote from yr first post "shows my profit at end year at only approx £10,000, when in reality i earn at least £30,000."
Quote: so with people like you posting nasty unfounded quotes maybe this is not such a good site or maybe we good people should get together and complain to have you removed for saying things that are not true.???? Who is involved in telling "untruths"
Quote: "besides that i would have a massive tax bill " ............Oh shame, if yr business is earning the money WHY shouldn't u pay yr taxes??
U r unbelievable, u have thanked the previous "tongue in cheek" remark (:P) "tax avoidance is not a crime
You don't want to pay yr taxes as " i would have a massive tax" (for yr info, 30k never resulted in a massive tax bill).........so u have originally self certified to obtain yr mortgage and now up want someone to "help" u to "find a way" (mortgage fraud) to release equity!!!!
By the way even with an income of 25k, the income multiples used by Accord would not allow you to obtain the figures you want ( income £25,000 x 3.25= £81250), ....also the figures you want to achieve, would take you to 90% LTV & Accord only lend up to 75% LTV....You will not obtain a 90% LTV Self Cert Product from any lender

Feisty1,

In a season of goodwill, you do come across as quite rude in a lot of your posts

I'm sure that I've seen on some of your posts in the past that you claim to be a mortgage adviser. Obviously you are not self-employed as you don't seem to understand the allowances/expenses that self-employed can legally offset against their income for tax purposes. This is not tax evasion.

With regards to Accord, their latest product guide confirms that they will lend up to 85% LTV for existing customers ( not self-cert admittedly, but in the original post it states my mortgage company Accord say I would have to show an income of £25000, by SHOW I'm taking they mean prove, which then is not self-cert, though I do agree that an income of £25k wouldn't be sufficient to get the mortgage amount needed.)

shaven-monkey

tax avoidance is not a crime, tax evasion is a crime.
Pretty much the only purpose an accountant serves is to deal with the byzantine tax legislation to prevent the government from stealing more of your earnings than they can force you to pay with threats of violence and incarceration.

The "fair" solution to the shared equity is to sell and split the proceeds (if any) with the ex. £20k buyout in this market seems a bit optimistic of her.

You'd probably be better off renting for 6 months or a year while building up a decent deposit and buy somewhere later on. Alternatively, have the house independantly valued, go through all the fun of transfer of ownership and rent the place out to cover the mortgage while renting somewhere cheaper.

Ilian2008

Hello, i agree with shaven-monkey and i would also add that financial settlement can only be reached by the courts and she could ask for more at a divorce hearing. Even if you get divorced, i hear that unless their is a financial settlement by court order the other party can come back and claim more. Its a bit like when someone wins the lottery and their ex wife comes back and claims some of it. You should see a divorce lawyer.

Hope it all works out