Few questions regarding joint mortgage after split with partner

ste.v

Hi I have recently split with my partner who i have a joint mortgage with, we were not married and dont have kids. The question has been asked about what is happening with the house, I now live here solely and she lives at her parents.
I have had the house valued by an estate agent, he valued it at 9k less than is owed. I plan to keep the house myself and have her removed from the mortgage. Is it possible to take her name off and for my to carry on payments without the need to remortgage, from what i remember the loan was made on my earnings as i am self employeed and had to go self certified but both names are on the mortgage, each payment was taken from my account without a missed payment, ex used to pay a few bills. the rate is fixed till May 2010 and will incure a 3.5k early payment charge.
Thanks for reading and any comments posted

cabbage

Hi

You will need your lender's approval to remove her name from the mortgage. Then you will need a solicitor to remove her name from the deeds. The same solicitor acts for the lender too. From memory the solicitors fees are almost the same as for a remortgage as s/he has to do the same amount of work.

The alternative is a remortgage into your sole name but you will need your girlfriends permission to do this and will also need to reach some sort of financial settlement even in a negative equity situation, this may be purely a release of her obligations under the mortgage ie to make payments. You will also have to pay the exit fees from your existing mortgage.

another more risky solution is to keep things as they are and get an agreement from her to pay towards the mortgage, possibly drawn up either with a solicitor or privately but witnessed. This has implications if she doesn't make her payment and also on who would inherit the house if either of you was to die. Hopefully that won't happen for years yet. She may also find it difficult to be re housed if needed as she legally has the right to occupy the jointly owned property.

All in all, the cheapest and easiest option is to get her and the lender to agree to take her name off the mortgage and the deeds.

ste.v

could you extimate the solisitors fees, just a rough number please. I dont think us sharing the mortgage in the future is an option and remortgaging seems expensive, in the situation of her signing the house over is it usual to give her a cash payment in order to helpl the process, the house in in negative equity and therefore has no cash gain to her if i was to sell, am i right that it would leave both parties with half the debt owing plus half the early remayment charge?

SuzieSue

ste.v wrote: »

could you extimate the solisitors fees, just a rough number please. I dont think us sharing the mortgage in the future is an option and remortgaging seems expensive, in the situation of her signing the house over is it usual to give her a cash payment in order to helpl the process, the house in in negative equity and therefore has no cash gain to her if i was to sell, am i right that it would leave both parties with half the debt owing plus half the early remayment charge?

This is the quote from the solicitors we used in the home counties when my partner was in a similar situation:

Further to our recent telephone conversation, please find below a quotation in connection with your Transfer of Equity:-

Our Fees: £250.00
VAT: £43.75
Official Copy Entries: £7.22
Land Registry Search Fees: £4.94
Bankruptcy Search Fe: £6.70
Land Registry Fees: £70.00

Total: £382.61

He also had to pay a couple of hundred pounds I believe to the lender for their legal costs.


HTH

SouthCoast

from what i remember the loan was made on my earnings as i am self employeed and had to go self certified

Previous posts on this Board suggest that these no longer exist. Have you now got accounts to supprt your earnings?

ste.v

Thanks, the fee's seem less than expected so thats good, i do have vey basic accounts for the last two years i am just a sub contractor, when you say they dont exsist do you meen void or just no longer available ?
Thanks