Strange Query: Mortgage, buying?

donnap83

Question Answered

kingstreet

The former partner will not be removed from the deeds or the mortgage if the lender does not approve the transfer of the mortgage and property into your friend's sole name.

Her credit worthiness and inability to afford the payments will be the deciding factor. This may be worse if she's borrowing more to pay him off.

You could take his place on the mortgage, but do you really want to do this? There are many, many pitfalls in getting involved in such a transaction, such as the problems you might have getting out of it later.

What your bank might do isn't relevant, unless you and your friend apply to them for a mortgage to repay the current one and the ex partner by remortgaging the property. Her credit situation may mean this is impossible.

donnap83

kingstreet wrote: »

The former partner will not be removed from the deeds or the mortgage if the lender does not approve the transfer of the mortgage and property into your friend's sole name.

Her credit worthiness and inability to afford the payments will be the deciding factor. This may be worse if she's borrowing more to pay him off.

You could take his place on the mortgage, but do you really want to do this? There are many, many pitfalls in getting involved in such a transaction, such as the problems you might have getting out of it later.

What your bank might do isn't relevant, unless you and your friend apply to them for a mortgage to repay the current one and the ex partner by remortgaging the property. Her credit situation may mean this is impossible.

She can play the mortgage, and has been for the last 2 years. But we've been living there, paying her rent that covers the mortgage payment. She can prove, if asked that the ex has had nothing to do with repayments for over 2 years.

I don't mind taking over the mortgage, like i said, it would be security for myself and partner. The way I see it, it will be like we're continuing to rent, but with a little added security. If/when she want to sell, well, thats fine. I will never get deposit money together to buy in my own right, and where I live the house prices are massively inflated. This way, we'll have somewhere to live for 5 or 6 years.

kingstreet

The point that she's been paying the mortgage unaided will make no difference. The lender will make a dispassionate decision on whether to remove the ex-partner based on the increased risk of not having two people to pursue in the event of default.

If you wish to investigate this further, I suggest your friend contacts the lender in question for further information. You should note there will be legal costs involved in the Transfer of Equity which will be needed and as mentioned, this may fall apart if the ex-partner is demanding a payment when your friend is unable to raise one.

donnap83

kingstreet wrote: »

The point that she's been paying the mortgage unaided will make no difference. The lender will make a dispassionate decision on whether to remove the ex-partner based on the increased risk of not having two people to pursue in the event of default.

If you wish to investigate this further, I suggest your friend contacts the lender in question for further information. You should note there will be legal costs involved in the Transfer of Equity which will be needed and as mentioned, this may fall apart if the ex-partner is demanding a payment when your friend is unable to raise one.

Are we talking thousands in legal fees? She already has the money to pay off the ex, she's just not got round to paying him as she only found out she was pregnant a week ago, and she wants to make enquiries about the mortgage first.

kingstreet

No. Hundreds, not thousands. They charge around £300 - £400 to remove someone, so perhaps £400 - £500 for one off, one on. It needs the lender's agreement first and whatever fee they feel like charging.

donnap83

kingstreet wrote: »

No. Hundreds, not thousands. They charge around £300 - £400 to remove someone, so perhaps £400 - £500 for one off, one on. It needs the lender's agreement first and whatever fee they feel like charging.

OK. Thanks for your advice! Been very helpful. At least it looks like there might be options.