transfer of equity

torty

could someone explain what transfer of equity, i have house valued at 115k mortgage 100k, 15 k equity to be split between us, she maybe able to buy me out, i also have 2 charging orders, but these are restrictions not charging orders so may get around that, help needed

Person_one

torty wrote: »

could someone explain what transfer of equity, i have house valued at 115k mortgage 100k, 15 k equity to be split between us, she maybe able to buy me out, i also have 2 charging orders, but these are restrictions not charging orders so may get around that, help needed

Can't help you with charging orders as I don't know what they are! But I'm going through the T of E route at the moment.

To buy you out, your ex will have to apply to the lender to take over the mortgage on her own, she will have to pass all the same affordability tests as at the start of the deal.

If she passes, the lender will require the title deeds to be changed to just the one name. This will need a solicitor and will cost a few hundred quid. The bank will then have you sign something to show that you give your permission to be removed from the mortgage.

Are you both agreed on a sum for her to buy you out? Bear in mind that if an estate agent values it that number is probably a little bit above what you would actually get for it on the market and also bear in mind that if you actually sold you would incur costs. Also, who paid the deposit and the mortgage? If it was always 50/50 that's simple, if not, you may have differing stakes in the property and need to decide between you an appropriate sum. For example there is about 50k of equity in our property but my ex is paying me quite a bit less than 25k for my half for several of the reasons above!