Applying for a remortgage on my own, but currently other party on the mortgage

Barny1979

I am looking to remortgage to Yorskhire Building Society from NRAM, currently my ex is on the NRAM mortgage, do I need to remove her from the NRAM mortgage before applying for the remortgage or can I just apply for the mortgage with Yorkshire on my own and they'll be removed from the deeds?

rising_from_the_ashes

I've just done something similar but was removing a guarantor from my mortgage - but the deeds were only in my name which made it a bit easier.

As the deeds didn't need altered, I was able to use the new lenders legal service (for free) but if the other party had been on the deeds they advised that this would require more detailed work by a solicitor which would've cost more (which I/the other party would've had to pay for and they will obviously also insist that the other party is happy to be removed etc).

Re removing the other party from the mortgage - this will depend on the lender.

The first company I looked at said I would have to remove the other party from my current mortgage before they would process my application (which was going to cost around £300 and basically involved a mortgage application to prove I was able to pay the mortgage myself - even though I'd always paid it - and it was also going to take 6 - 8 weeks!).

The company I went with were happy to leave the current mortgage as is and process with the new mortgage application in my name only (they took the view that the old mortgage would be settled in full so it didn't matter that there was another party currently on it and the new mortgage application was approved on my income/history only).

Obviously this will be a bit more complex as it's been a joint property with you and your ex so would advise you both to seek legal advice.

HTH

opinions4u

The solicitor acting for you in the remortgage should be able to do it. That will cost extra.

densol_2

I did this 5 years ago. I separated from my ex and bought him out by re-mortgaging to another company. You have to pay for the solicitor to prepare the transfer deed. The house and mortgage become yours. Also I had to pay stamp duty on his "half" of the mortgage I was taking off him plus the value of the cost of half the equity ( worked out at 1% as both came to more than £125k) . Really annoying especially as we had paid 3% stamp duty to buy the house before !

Its very easy as long as the mortgage company accept you have the correct income.

Denise

kingstreet

Remortgage into your sole name. During the process you can have a solicitor carry out a transfer of equity carried out to remove the other party from the deeds at an additional cost of around £300.

The other party will be required to sign the transfer document and is advised to seek independent legal advice.

johnk

densol wrote: »

I did this 5 years ago. I separated from my ex and bought him out by re-mortgaging to another company. You have to pay for the solicitor to prepare the transfer deed. The house and mortgage become yours. Also I had to pay stamp duty on his "half" of the mortgage I was taking off him plus the value of the cost of half the equity ( worked out at 1% as both came to more than £125k) . Really annoying especially as we had paid 3% stamp duty to buy the house before !

Denise

Did you? I am pretty sure that Transfer of Equity is not subject to stamp duty nowadays, if you are married.

Meeper

I'm pretty sure it is, depending on the figures.

densol_2

johnk wrote: »

Did you? I am pretty sure that Transfer of Equity is not subject to stamp duty nowadays, if you are married.

We wasnt married - but in any event even when parties are married it is subject to SD on the " consideration" ( which is half the mortgage debt plus any cash sum value paid )

The only time it isn't subject to SD on transfer is as part of a divorce settlement,

Denise

kingstreet

Have a look at this.

Meeper and densol are right;-

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm