transfer of equity

mumnotplusone

Hi all
Hoping for some advice on my situation. Husband and I are separating. House deeds and mortgage are in his name but he is happy for me to buy him out. I have arranged mortgage thru London & country and they'e suggested a transfer of equity prior to my mortgage or simultaneously so that my mortgage aan be classed as s remortgage. I have asked my solicitor to explain this to me but while I am waiting wondered if anyone here could enlighten me. Will his mortgage lender need to be involved, fees involved etc. The whole point of it would be to save fees on my new mortgage but I'm wondering if I might be better just paying the fees on a normal new purchase mortgage? Or is this quite straightforward?

Any advice appreciated.

Thank you

silvercar

Transfer of equity is easier, less paperwork so you save fees. May also mean no stamp duty.

You can transfer the existing mortgage with a transfer of equity, rather than take a new one. So no survey or valuation needed.

mumnotplusone

Thank you for your reply silvercar. I really don't want his mortgage as can get better desk and need to increase mortgage to pay husband his share.

Think I might be making it more complicated by doing this but is what I have been advised by broker.

Worried that when my mortgage comes into effect there will be some problem with the transfer of equity that means it all falls thru

bryansp

soory to go off topic here, i have searched the help section and i cant find how to start a new post! grr
any ideas? just joined.
thanks

mumnotplusone

Thank you for your reply silvercar. I really don't want his mortgage as can get better deal and need to increase mortgage to pay husband his share.

Think I might be making it more complicated by doing this but is what I have been advised by broker.

Worried that when my mortgage comes into effect there will be some problem with the transfer of equity that means it all falls thru.

Don't want to get stuck on this. Might phone broker back tomorrow.

Thanks again

mumnotplusone

Hi bryansp

At top left of threads is lozenge saying new thread - click that. To reply to an existing thread use reply, as you must've done here, doh!

Richard_Webster

The property is in his name and his mortgage is on it. Both his name on the title and his mortgage have to be changed/removed.

Financial adviser is not explaining well. You have to do the two simultaneously.

You can't do the transfer of equity first because that means you have to take over his mortgage! What happens is that you use your new mortgage and any cash you are putting in to pay him and his solicitor uses some of that money to pay off his mortgage. He can't transfer the title to you unless the mortgage is paid off and this can't happen unless he gets the money - in that way it is no different from an ordinary purchase.

Effectively you are buying the house in the normal way and might have to pay SDLT although you may be able to take advantage of the exemption for divorce related transfers.

silvercar

You can't do the transfer of equity first because that means you have to take over his mortgage!

I thought that with the lenders agreement, you could transfer the mortgage and at the same time transfer ownership on the deeds. This would give the OP the property and mortgage in her name. Then she could do a remortgage by taking a mortgage with the new lender, the proceeds of which would clear the old mortgage and pay the ex his share, presuming she took extra funds on the remortgage for the pay off.

Sounds a lot of legal work to achieve the same result, but does mean access to remortgages which can be cheaper and easier to come by than a new mortgage application.

Richard_Webster

I thought that with the lenders agreement, you could transfer the mortgage and at the same time transfer ownership on the deeds. This would give the OP the property and mortgage in her name.

Two sets of mortgage applications. OP has to apply to H's existing lender to take over his mortgage (and pay their admin fees for that) and then apply again to new lender for new mortgage. Two sets of legal work too. Can't see the point.