I've made a big mistake with mortgage & title deeds

lovemotown

Hi All,

I have made a big mistake recently when moving house, with the mortgage and subsequent title deeds.

I took out a 30% LTV mortgage on a new build, and because my wife was/is not currently working, assumed, (rather badly), that she couldn't go onto the mortgage. Why, I don't know, (old age/confusion I guess).

I thought it was possible to get a mortgage in one name, but by completing the forms at the solicitors saying we wanted joint ownership, this would put her onto the title deeds - but alas, not so! By the time I found out we were at exchange and didn't want to have to start all over again.

I am now faced with my wife not "owning" any of our new house despite contributing to all our previous homes during our 32 years of marriage. As you can imagine, we are both upset about this error.

My solicitor advises that once my name has gone onto the title deeds at the LR, (takes about 4 weeks???), I am led to believe that a "Transfer of Equity" can put her onto the deeds, (my solicitor says £250+vat).

However, I have read that as I have a mortgage, if she isn't earning/working, the mortgage company won't allow her onto the mortgage as she would be unable to fund/pay the mortgage whilst unemployed?

Can the mortgage company call the shots and deny her this right, even though we own 2/3rds of the house?

Does anyone know if this is correct or have any suggestions?

Many thanks

Cannon_Fodder

Speak to your lender. As long as your wife doesn't have a horrendous credit history, that was "accidentally" undisclosed by the earlier ""confusion", I would not expect them to be too rigid.

They may insist on a credit check on her. But as I understand it, if you filled out the form as "married", they should have borne her in mind, anyway.

The marital home confers rights of residence, irrespective of who is on the deeds. Others on MSE have railed against the "unfairness" of having the wifes debts considered when doing a single application to benefit from a husbands good record. When in fact the lender is simply observing the marriage contract rights...

It doesn't seem right that lenders will try to have it both ways. Although, in the land of bureaucracy it might take a little effort...

Hippychick

I don't work unfortunately due to illness and managed to get a mortgage with my husband. As long as my husband could afford the payments and we were able to ensure we had insurances to cover him in the event of redundancy/illness etc it was fine.

Our lender was the abbey, hope that helps.

lovemotown

My solicitor told me that they checked with the LR and that they were advised that if the mortgage is in only one name, then only that person goes onto the title deeds?

Does anyone know if this is correct?

If so,(and what confuses me), is what purpose does the "Shared ownership" (or whatever they are called), forms I filled in at the solicitors serve, if they don't put your spouse onto the title deeds?

Cannon_Fodder

While there is a mortgage, the lender controls who is on Land Registry/deeds, yes.

They will want to ensure no other parties come between them and the house should repossession be necessary.

But your wife, having a marriage contract, would get in the way of that anyway...so they shouldn't mind too much, putting your wife on the mortgage.

"Shared ownership" sounds like partial purchase, partial loan/rent, on a 70%/30% arrangement...

happybroker

Cannon_Fodder wrote: »

But your wife, having a marriage contract, would get in the way of that anyway...so they shouldn't mind too much, putting your wife on the mortgage.
QUOTE]

I would imagine your wife will have signed a "Consent to Mortgage" which will mean that she wouldn't "get in the way" if the bank decided to reposess.

Speak to your bank they will ask for your wife to complete an application and no doubt charge for looking at this. The alternative is for your wife to register a caution or charge against the property under the matrimonial homes act so that nothing can be done with the ownership of the property without her involvement. The transfer of equity is the best way forward however.

lovemotown

Sorry all, but I may have clouded the issue slightly as I can't remember the proper name for the form I completed at the solicitors which I was referring to. It was a form that asks you if you want joint/equal "ownership" or part/%age or something like that. This is the form I have been referring to, which I thought put my wife onto the deeds.

We actually only required a mortgage for a third of the value as we had sold a house and had savings - we didn't buy a part share of the house.

QUOTE=Cannon Fodder;24317647]While there is a mortgage, the lender controls who is on Land Registry/deeds, yes.

They will want to ensure no other parties come between them and the house should repossession be necessary.

But your wife, having a marriage contract, would get in the way of that anyway...so they shouldn't mind too much, putting your wife on the mortgage.

"Shared ownership" sounds like partial purchase, partial loan/rent, on a 70%/30% arrangement...[/QUOTE]

Trollfever

Have you been dealing with a qualified solicitor and raised these issues with them?

lovemotown

Absolutely, (after sacking an online conveyancing solicitor who was useless).

This all came to light when we went to sign the exchange of contracts at the solicitors and were asked "is there any reason why your wife is not on the mortgage". I said that she was out of work and that I didn't think she could go onto the application if she didn't have a salary, (or something like that).

At this point we signed various forms including the one I can't remember the name of, (the form asks how the home ownership is to be split).

At this point the solicitor said that she had checked with the LR and advised us that even though we had completed "the form", my wife couldn't go onto the deeds without applying (and paying for) a Transfer of Equity. I am prepared to pay for this mistake but am worried that because I have a mortgage they may block it if my wife is currently out of work.

Trollfever wrote: »

Have you been dealing with a qualified solicitor and raised these issues with them?

Trollfever

You can use this form to check that you have been dealing with a qualified solicitor:

http://www.lawsociety.org.uk/choosingandusing/findasolicitor/view=solsearch.law

happybroker

I very much doubt your wife would be refused assuming she has a clear credit history and fits the other criteria....her not being in work shouldn't be an issue if the deal fits on your income alone.