Is this complicated or simple?

izools

Scenario:

Mother is the sole proprietor of her home. The land registry records her as the sole person named on the freehold title deed.

The land registry also records her mortgage provider, HBOS T/A Birming Midshires, as having a charge against the property.

There are no names of any 3rd parties anywhere on the land registry except in the sale of the house to her in 1988.

However, her mortgage account with Birmingham Midshires lists her name and her ex husband's name.

Should this cause a problem remortgaging?

She is the sole proprietor of the property and the only applicant.

However upon speaking with Nationwide, the (alleged "senior") mortgage advisor kept going on about mother not being able to apply as there would be a "transfer of equity" involved.

No there wouldn't. She is already the sole proprietor.

The advisor refused to take this on board and just kept repeating "we can't offer you a mortgage because a transfer of equity is involved" over and over like a deaf retard, with the smarmy, sarcastic "Ok?" over and over. Urgh.

Any advice?

Thrugelmir

I assume your mother was given title to the property when she divorced. So there would have documentation drawn up at that time detailing the financial settlement.

Can you mother afford to remortgage in her own right?

kingstreet

How has the proprietorship register at the Land Reg been amended to remove the husband if he's still party to the mortgage? Was the property not conveyed in joint names when they bought it?

She can certainly apply for a remortgage in her sole name and receive a mortgage offer. At the point the solicitors do the Land Reg search and obtain a redemption figure from BMS, the solicitor may notice the account is in joint names and start asking questions which delay completion until the matter can be resolved to the new lender's satisfaction.

izools

Oh yeah absolutely,

38% LTV, the Nationwide affordability checker calculated she could borrow £101,000 but she only needs £60,000. She can afford to repay over 15 years, probably 10 if she knuckled down.

Hes she was given title to the property when she divorced. Sole proprietor. Documentation all in place. What would that be required for? The new lener or getting her ex's name off the account with the old lender? He was left there intentionally I think so that he had liability to pay what she couldn't afford, whilst raising my brother and I as a single mother in the 90's (i.e. as a liability but not an asset to her ex) if that makes sense...

But certainly 100% the land registry shows my mother as sole and absolute proprietor of the property since the court order in 1995. It doesn't actually mention her name or my father's name in the original purchase of 1988 for some reason. Meh.


From the sounds of things it would still be best to send BM a certified copy of the 1995 court order and the land registry entries and say "Oi! Anstey, Sergent and Propert told you to do this 16 years ago. So bloody do it already" - then apply for the mortgage

kingstreet

I'd give it a try. Go for a fee-free deal (which will probably be better for her on a low mortgage amount anyway) and see what happens.

The solicitor is only going to pay off BMS with the remortgage proceeds, so it might not even be noticed. If she's worried, she could give the solicitor the heads-up on why the account is still showing joint names to avoid any completion delays.

izools

So the lady at Nationwide was talking out of her proverbial, then?

izools

If anyone is able to confirm whether or not the lady at Nationwide was talking rubbish I'd really appreciate that -

Need to make sure everything is as it should be before applying anywhere

It's a bit of a rock and a hard place situation really because every month we wait mother stands less chance of approval due to her age but rushing things will likely lead to a decline anyway because of not making sure everything is as it should be first.

*sigh*...

holly_hobby

Shes not talking out of her hat, as she is basing her statement on what the current mge arrangements are on.

I know you have told her the deeds are in 1 name - but without evidence of that - she is really unable to change her stance. She is viewing that the mge is registered in joint names - whereby (in any other circumstance) so will the deeds be. Meaning, if there is now only 1 of the parties applying for the mge, then there will only be 1 name on the deeds, hence a transfer of equity.

I wouldn't be too hard on her, or waste too much energy on venting at her comments - just get the evidence together that supports your arguement, and either yourself/broker or Solicitor present the same to NW for them to do a DIP on the basis of the mge being in your mothers sole name.

Hope this helps

Holly

silvercar

Sounds to me like the home was in joint names, then the divorce settlement gave the property soley to your mother. Hence the deeds being in your mothers name alone. At the same time the lender would have been asked to transfer the mortgage into her name alone but is entitled to refuse, just because having two people liable for a loan is less risk than one.

So you end up with an odd situation where the deeds no longer match the mortgage. Its a bit of an oddity because, with no financial interest in the property, your father could have had no interest in maintaining the mortgage and all the lender could do would be to put a black mark by his name if the ended up repossessing.

So all the previous posts are right.

The mortgage can be redeemed just by paying it off.
The new mortgage can be in your mothers sole name.
There is no transfer of equity, but there is a transfer of liability.

You cannot force the existing lender to remove one persons name if they don't want to; you can redeem the mortgage.

izools

Can a new lender use the fact that my father is named on the existing mortgage as a sole reason for not completing / declining?

Thanks for everyone's advice so far, by the way Really appreciate it.

izools

Yay!

"We are pleased to confirm that we can provide you with the mortgage requested. Your lending certificate appears below".

Awesome. let's hope they just pay off the charge from BOS without delving too deep