transfer of equity

holly_hobby

No - you are completely wrong.

A transfer of equity is a legal transfer of title - of which the equity holders permission is reqd for LR to perform the transfer - regardless of whether the mge is to remain with the current lender, or a new lender sought, and whether or not consideration is given in exchange for the TOE.

If the equity holder, doess not agree to the others request for the TOE, then little can be done, unless the courts are involved.

You also do not have to remortgage to change from joint to single, or single to joint names - this is a transfer of equity and has nothing to do with having to change your mge provider (subject to status requirements which may dicate this of course).

Without wishing to sound hard (as all posters comments should be respected), do please ensure accuracy of statements are clarified before posing - especially where it involves a legal process to a layman, inaccurate data benefits no one.

Hope this helps

Holly

The_J

Also, you don't have to "buy out" someone in a transfer of equity. They can waive their equity stake or may not have contributed in the first place.

The OP cracks me up though. Almost as much as holly trying to restrain herself, one day she is going to crack and someone is going to be killed :rotfl:

star4876

Thanks, Holly.

With respect as you said, I'm going through a TOE process at the moment and I do know what it is. The OT doesn't just want to progress a TOE though, its about resolving the mortgage to remove the sister, from what I can gather! You can sign your equity over to whoever you like, it doesn't resolve your responsibility to make payments against your mortgage contract though does it?

Also...How many lenders are out there who will happily alter a joint mortgage to a sole name without going through a reapplication process? Mine certainly wouldnt! Although, there are no complications in my case as Im not looking to claim any equity back from capital paid.

So what Im saying is the OT is going to have to [or likely to have to] go through a m'gage reapplication anyway to achieve what they need to, and if the current lender isn't flexible enough to consider them because of the 25k limit, im sure another broker or lender could offer a more achieveable deal - depending on how big the mortgage is?! Theres no need to stay put as far as I can tell, certainly no need to try to sue them.

The_J

The title deeds and the mortgage generally have to match. I.e a change to the title deeds means a change to the mortgage. The sister wants to be removed from the mortgage so it doesn't count against her. This is a transfer of equity.

You don't have to "reapply", the lender has to be happy with the new situation.

Moving to another lender may not be cost effective (ERCs, higher interest rate etc.)

star4876

Ah well, sorry for confusing the issue, but in my experience the lender "being happy" with the changes meant going through an eligibility check and reapplication process - including a reapplication fee of about £150!

The only reason I/we stayed with the same lender is because its a fixed deal and will be too costly to come out of it this early (5%)

I had asked them about the TOE, they said fine to progress through solicitors, but the sole party will still need to reapply. I was advised that a lender making this change without going through the reapplication rigmorol was pretty rare.

holly_hobby

All TOEs where there is a mortgage in place, are subject to status checks of the remaining mortgagor - as I have said, which in essence is verification that the remaining mortgagors income is sufficient to svc the mge debt post TOE - it does not equate to a brand new application, but I can see how you may think it may. With the fee you mention in your case not in respect of a re-application fee (ie - as you see with std new mge apps), but is actually the lenders fee for the administration of the TOE from their end.

If the remaining mortgagor's income is insufficient to service the mge on a sole basis then the TOE is simply refused by the lender - which MAY be facilitated by remortgage to a new lender whom have more generous income multiples/affordability assessments.

Of course a TOE can take many guise's - the simple adding OR removal of a individual, or 2 fold in the removal of one, with the direct replacement of another indvidual .... ALL subject to status of course.

But all of the above is on the basis that the indvidual has agreed to the TOE, IF they refuse, then they can't be forced to agree to a TOE (even if affordability of the remaining mortgagor is more than satisfactory for mge purposes, and even if the indvidual is offered copious amount of money to agree to the TOE) - it is the equity holders right to refuse - the ONLY way in that event would be by the Judicial route as stated several times.

Hope this helps

Holly