Personal details on mortgage post divorce

benjus

Hi all,

My divorce has finally completed after a rather drawn-out process. Since we separated our former home has been let out; under the terms of the Declaration of Trust we signed as part of the financial settlement it will remain let out and owned under both names, but as tenants in common rather than joint tenants, and with specified proportions of ownership.

The property is still under the original residential mortgage (with consent to let) from Santander (ex A&L) and I am very keen to keep this mortgage, as it's a low index-linked rate.

I am wondering what is mandatory and/or advisable to tell Santander in this case. I would like to tell them to send correspondence regarding the mortgage to both myself and my ex at separate correspondence addresses. However, I don't want to do anything that could cause us to lose the mortgage.

Any advice would be appreciated.

The_J

If it's under consent to let, what's the problem?

benjus

The_J wrote: »

If it's under consent to let, what's the problem?

Hopefully none... just feel slightly uneasy about the whole thing, not sure why.

The_J

Hey, what can you do? You split up. It feels dirty getting a great rate whilst bringing in decent rental income but you can be sure if the rate was much higher the bank wouldn't be feeling guilty.

dimbo61

How long is the " consent to let " for and is it a repayment mortgage.
Why do you want to continue to be Landlords and rent out a property ?
What happens when one of you needs to take out another mortgage ?
Lots of lenders are now looking at " consent to let " agreements and after 3 years of renting out a property you will have to pay CGT on profit the house makes ( increase in value)
You are both still linked to each other !!!
time to sell up and move on with life and you may even have money for deposit on your own place

The_J

dimbo61 wrote: »

How long is the " consent to let " for and is it a repayment mortgage.
Why do you want to continue to be Landlords and rent out a property ?

Renting is profitable at the moment, especially as they have a good rate of interest. If two people have entered an agreement that has worked out favourably because of market forces why not keep that going on a 50:50 basis? The length of consent to let is a good point.

What happens when one of you needs to take out another mortgage?

If the rental income is more than the mortgage payment. It's not a problem.

Lots of lenders are now looking at " consent to let " agreements and after 3 years of renting out a property you will have to pay CGT on profit the house makes ( increase in value)

Lenders do not charge CGT. The Government does. Tax on a Capital Gain is part of life, it's still a gain. I.e. you profit.

You are both still linked to each other !!!
time to sell up and move on with life and you may even have money for deposit on your own place

We don't know the situation.

benjus

Thanks dimbo61 for your views on what I should have done. Of course, I looked at the options and decided that (for the time being - this may not be a long term arrangement) continuing to rent it out made more economic sense than selling.

Consent to let lasts 1 year. I've renewed it several times now and it's always just been a quick phone call and all done. If they were to turn around and say "no" I'd have to rethink things and maybe put the place on the market.

To be honest the only thing I want from Santander is for them to stop sending out letters regarding the mortgage addressed to "Mr and Mrs XXXX". Other than that I'd be quite happy to keep things as they are and not tell Santander anything.

Thrugelmir

benjus wrote: »

To be honest the only thing I want from Santander is for them to stop sending out letters regarding the mortgage addressed to "Mr and Mrs XXXX". Other than that I'd be quite happy to keep things as they are and not tell Santander anything.

A small price to pay for a low interest rate.