Removing name from mortgage / getting bought out

Eribee

Hi there

I know this is similar to another thread, but I'm still confused.

My boyfriend and I have broken up. We have a house together (both on deeds, both on mortgage).

He is going to 'buy me out', by paying me what we think is fair (all based on equity on house etc). He is going to give me what I am owed in cash. Then we will remove my name from the deeds and from the mortgage.

I thought this was going to be straightforward, but I'm a bit concerned now that I've read some of the information on this site that the lender won't be happy about the mortgage being transfered just into his name.

Remortgaging isn't really an option for him due to a high early repayment charge, which we are both hoping to avoid, and is one of the reasons we're not selling it.

He is a barrister, which makes him self-employed and appears to be another issue.

As a rough estimate from what I remember from our various discussions, I think there is about £100,000 to £120,000 left to pay on the house, and equity around £30,000 - £50,000.

I hope there is a way round this and I hope that it can be done quite quickly because I'm ready to get a mortgage sorted and put an offer on a house.

Any advice would be greatly appreciated!! :question:
Thanks so much

opinions4u

It's totally in the hands of the lender.

If they don't want to release you from the long term commitment you signed up to, they don't have to.

What have they said?

hcb42

you only have a rough estimate, on a massive debt that you are responsible for?

you need to get a grip on that pretty quickly, but if he can buy you out, then great, a lot are not in that situation

Eribee

Thanks, we have the paperwork of course, i just can't remember the figures right now. I'm just not sure how it's done.

I guess we just contact the lender then.

Eribee

@ opinions4u

Thanks, we haven't asked them yet. I was just trying to get an idea on how it all works in the meantime.

zzzLazyDaisy

If you wish to take on a new mortgage, you need to make it a priority to find out of the current lender will allow your EX to take over the mortgage. Because even if he has paid you the money you have agreed, that does not absolve you from liability for the mortgage, which means that you are probably unlikely to get another mortgage until this is sorted out.

kingstreet

Your ex approaches the lender to request a transfer of equity with further borrowing to buy you out.

The lender vets him as it would a new applicant, checking his income, credit worthiness and the new loan to value of the total mortgage.

If all ok, they will agree to the transfer and the matter then passes to a solicitor. The solicitor will handle the transfer of equity for your ex, resulting in him being the sole named mortgagor and owner. The solicitor will obtain the funds and pay them on to you after obtaining your written discharge.

The cost of the transfer of equity, including lender and solicitor's costs will be in the region of £400 to £600. You will be advised to seek independent legal advice, at your own cost.

There is nothing to stop you applying for a mortgage once things get under way. Once the lender approval to the extra borrowing is granted, you can then confirm on your new mortgage application that the current mortgage will be repaid on, or before, the completion of the new one.