Help Questions on transfer of equity.

smithy67

Hi All
I would just like some advice after reading loads and loads of post i just cant seem to find the answer.

So hear we go Me and my ex have a mortgage. I was going to take the house on with my current partner after some talks i decided not to go ahead as there is neg equity in the house and to much of a risk for her to do having just bought a brand new house herself.
So now my ex partner wants the house and want to move back in which is no problem as i have moved out now anyway.

My question is should i let her move back in before the transfer of equity has been completed and can i stop her legally from moving in.?

I know she has been in contact with the current lender.
When i was going to do the transfer of equity the lender said the other party (who was coming on to the mortgage) must live there) which is stupid as my current partner has a new house so was not possible.

Now when i ask my ex who is moving in she will not tell me or beats around the bush( not that am bothered who moves)
Its just a case of her moving back in not doing the transfer of equity and then failing to pay the mortgage. I hope this makes sense because i am bloody clueless.

Also she keeps coming round with people to view the house and still will not tell me why. Not to sound to petty do i have a right to know or should i keep my big nose out of her business.
I hope someone can help.
Thank you

holly_hobby

It feels to me ( in addition to the facts re TOE), that she is going to rent the property out, and the viewers are prospective tenants.

If this is the case, then the mortgagors (whomever is named on the mortgage/named borrower), shall need to seek the permission of the current lender to do this (called Consent To Let), or remortgage to a traditional Buy To Let mortgage.

Effect on you - would be if you remain on the mortgage, the property is let, and Consent to Let is not sought from the lender. This creates a breach of your mortgage terms, and upon discovery the lender may force early redemption (ie they want the mortgage repaid), which would mean seeking another lender on a BTL basis.

Obv if the mortgage is not paid, and you remain party to the mortgage, the lender will pursue you as well as her for the payments, which could end up in a respossesion order, which if sold at a loss, the lender continuing to pursue all mortgagors for any shortfall for a period of up to 12 yrs.

Hope this helps

Holly

smithy67

Thank you holly hobby.
I was going to do that myself and had been in talks with my lender to this.
Which to be honest would be the best option for the time been.

My ex wants no part of me on the mortgage and wants me of it.
So the renting option is a no go.

Just spoke to my mortgage company and i knew i would be responsibly for the mortgage if she fails to pay.
Should i just let her get on with it as she is as far as i know not one to miss a payment.

holly_hobby

I am a little confused as to what is going on ... but from what I can understand from your post your ex wants to remove you from the mortgage, it appears she wishes to let the property and you are agreeable (?)

In order for her to do so (on a residential mge) her own income must be sufficient to service the mortgage - if it is then the mge lender will release you from the mge (there will be some legal & mge admin fees for this).

The alternative where her income may not be as major an issue, would be for her to remortgage the property to a buy to let mortgage, whilst removing you from the mge/deeds at the same time,.

Once you are off the mge - in respect to yourself, you will then have no liability and therefore whether she misses payments or not has no relevance to you.

If you do not wish to be removed from the mortgage or the lender will not release you, then you will be fully liabile for the entire mortgage payments as will your ex, and the lender will puruse you both with equal vigour for non-payment. So you need to consider (if you have an option) whether you want to be exposed to this commitment.

As prev stated the consent to let aspect is an agreement with the lender, and for yourselves to consider if you don't want to reside in the property and don't want to or are unable to sell the property.

Letting brings its own issues and can be a smooth ride or an absolute nightmare. If you do want to explore the letting aspect, there is lots of advice and guidance here for you if you just ask.

Hope this helps

Holly