Transferring a property and mortgage to another person?

dotbling

Hi folks. First post so please forgive me if I'm in the wrong place. I'm hoping you might be able to provide me with some advice.

A few years ago my partner and I bought a house together but for convenience at the time the property, mortgage, utilities etc was put in their name.

We split the bills and spent a lot of time and money doing the place up but recently we have amicably decided to go our separate ways. We've agreed that I will continue to live in the property and she'll move on so we'd like to know the least painful way to transfer the house and remainder of the mortgage into my name.

I'm not sure if it's possible but I had thought a neat way to do it would be to add my name to the mortgage then remove theirs. Is this possible? Or would the property have to be sold to me and a new mortgage taken out?

Ta in advance!

CLAPTON

the mortgage company would have to agree a new mortgage for you based on their normal criteria

Thrugelmir

You'll need to buy the property from your partner in the process obtaining a mortgage to do so.

dotbling

Thanks, I'd feared that would be the case. The problem is that all our equity is tied up in the property so we'd need to free that up by selling the property to get enough for a deposit to buy it back!

Any advice on how to get around that Catch 22?

Thrugelmir

So you need to pay your partner their share of the equity?

The_J

Your partner sells you the property at a reduced figure (they gift you the deposit). You get a mortgage to pay off the existing one and the extra to "buy out" your partner.

Simples.

dotbling

@Thrugelmir

Not sure I'm using the correct terminology, and I'm getting myself a little confused!

If it isn't possible to simply transfer the mortgage, then I assume I'd need to find a deposit for a new mortgage to buy the property from my partner.

Once that had gone through and the original mortgage had been settled then we'd split the profits from the sale 50/50 (the value of the property has gone up slightly).

Is that how it would have to work?

dotbling

The_J wrote: »

Your partner sells you the property at a reduced figure (they gift you the deposit). You get a mortgage to pay off the existing one and the extra to "buy out" your partner.

Simples.

Cheers! It sounds simple, but I'm quite simple too! How does the 'gifting' work? Would I actually need the cash for a deposit?

Thrugelmir

dotbling wrote: »

If it isn't possible to simply transfer the mortgage,

The mortgage is actually the legal charge placed on the property title to secure the monies advanced.

The monies that are borrowed are no different to a loan.

To switch the mortgage into your name will require a complete new application. As you'll need to be credit checked etc. Along with meeting the affordability requirements that the lender sets for the product applied for.

The_J

dotbling wrote: »

Cheers! It sounds simple, but I'm quite simple too! How does the 'gifting' work? Would I actually need the cash for a deposit?

Nope, the "gift" is the cash.

dotbling

@Thrugelmir - thanks, it's obvious now you point that out!

@The J - as we're skint, presumably the sale would have to go through before my partner was in a position to 'gift' me the cash for a new deposit? I'm probably missing something here but it still seems to be a Catch 22? :think: