Transferring a property and mortgage to another person?

Typhoon2000

Say the value of the property is £100000 and the remaining mortgage is £50000. Let's say your partners share of the equity is £25000. So you buy the property from her for £100000 with 75% mortgage. So the bank is lending you £75000 but she is gifting you £25000 for the deposit. So your solicitor does not have to transfer the £25000 to her - only the £75000 provided by the bank.
So she ends up with £25000 after paying off the £50000 initial remaining mortgage. And you have a £75000 mortgage on a £100000 property. So you essentially have £25000 or your share of the equity in the property.

CLAPTON

facts always help and concentrate the mind

how much is the house worth
how much the mortgage
how much does your ex want

dimbo61

Other points to bear in mind
Can you get a mortgage ?
How much equity in the property ?
how much do you give EX 50% ?
If after paying your EX out her share you cant get a mortgage LTV say over 90% then you need to either sell and split the equity thats left or come to some agreement re Shares

The_J

dotbling wrote: »

@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:

NO!!!

There is no cash. The equity in the property is the cash which in turn is the deposit.

I.e. 100k house, 50k mortgage. You need to raise 25k to buy out your partner. Partner sells you property for 75k, you get a mortgage for 75k on a concessionary basis at 75% LTV (if the mortgage lender values the property at 100k).

DVardysShadow

dotbling wrote: »

@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:

Answer clapton's questions

CLAPTON wrote: »

facts always help and concentrate the mind

how much is the house worth
how much the mortgage
how much does your ex want

and someone will make it clear to you, I am sure.

star4876

apologies in advance for not reading every single reply before chipping in, but I'm going through the same process and this is how its working for me...

Whoever wants to keep the house needs to apply for another mortgage deal either with the same company or another one. Not many companies will make amendments to an existing contract, i.e. take a name off - Santander certainly won't. If you apply with another company bear in mind any early repayment penalties you might have if you're currently in a fixed deal.

If the sole application is succesful you need Solicitors to draw up transfer of equity paperwork to say that one party is willing to transfer their share to the other, remove names from deeds etc.

I'm not sure how it would work if your ex partner requires 'compensation' for the capital she has paid in. I am quite happy to let it go just on the basis that I want to get rid of the tie to the mortgage, and I didn't put anything towards the deposit either so there is no loss for me there.

star4876

I forgot to add into the mix... If you don't have sufficient earnings to support a mortgage application on your own, can you consider refinancing with somebody else? Parents or other relatives? Its a longshot but if it helps the cause and means you don't have to sell up...

dotbling

Thanks very much for all the replies everyone, things are much clearer now.

Here’s the rough figures:

We paid £130,000 (valued at £125,000). We both put in a deposit of about £8,000 each and my partners relative put up a further £15,000.

We have about £110,000 left on the mortgage as we borrowed some more for (as yet incomplete) renovations


The house was recently valued again at £125,000.


My ex is happy to go with the recent valuation.



Thanks again folks!

getmore4less

Who is taking the hit?
You are £20k down and the £20k invesment has added nothing to the value.

Just to pay the mortgage off will require 90% LTV application.

Then you will need £500-£1k for the fees more if there are high application fees.

if she want buying out say £5k-£7.5k going to be hard to raise that.


Sure you want to do this. might be easier to walk away.