Transferring a mortgage to another person - is this allowed?

Nicnol

I am hoping that this is the right section to be posting this on.

My husband and I have recently split up (yesterday) and I am covering my back basically so trying to get information on what to do next.

We live in a house which is in his name only. We moved into this house together nearly 3 years ago but as I had had bad credit I was unable to get a mortgage so we got the mortgage in his name only with the intention of adding my name at a later date when my credit history was clean (which is is now). I put up all of the deposit on the house and have paid for all the renovations as I have always earned more money than him.

As this looks like it could be final I am keen to take on the house and continue living there and I can comfortably achieve this on my current salary.

Is there any way that he can transfer this over to me, or would I have to get a mortgage and buy the house as if it was a straightforward sell? As my money is tied up in the house already I would not have physical cash to put down for a deposit. Therefore could I just not get a mortgage for the same amount as the existing mortgage (approx £135k) as the houses in our street are valued at £160k.

What if he added me to the mortgage and then took himself off? Is this an option that we could explore? I think ideally I would like to get a new mortgage as I think I could get a better deal than we currently have. We also have a redemption penalty to pay to get out of out existing mortgage which I think would be c.£3k.

Any thoughts and ideas greatly appreciated in which steps I need to take next.

RAS

Since you are married, you need to get this sorted out as part of the financial settlement.

The assumption is that regardless of who put up what or who owns what, you both get 50 percent of the assets of the marriage.

If however, he is happy to let you take on the house, you will need to get a mortgage and then change the deeds.

You do not need a soliticor to do the divorce - costs about £380 in court fees - but you probably need a lawyer for the financial settlement if there are children or property involved. seen toomany disasters on here to suggest otherwise.

hazyjo

RAS wrote: »

The assumption is that regardless of who put up what or who owns what, you both get 50 percent of the assets of the marriage.

50/50 presuming you've been married for more than 5 years... Not sure if that changes if kids are involved.

Jx

Nicnol

We have only been married 9 months :embarasse
I kind of expected that this would be the case re getting a new mortgage and effectively paying off the existing mortgage.

I'm just unsure as to how I would raise a deposit or would I not need one if I only wanted 85% value of the house to pay off the existing mortgage. Kind of like a re mortgage I suppose but I will be the owner not H?

HB58

You had a bad credit history 3 years ago. Has that now improved to the point that you would be able to get a mortgage in your own name?

Nicnol

I had a CCJ on my account which in the last 3 years has disappeared from my credit history as it was over 6 years old.

People are allowed to improve their credit history. I have had no defaults on payments or any arrears for more than 6 years now and my credit report shows that. I believe that there is no reason why I would not get a mortgage as my credit report is good.

Yorkie1

When you bought the house, did you draw up any documentation to reflect your input, or to protect your rights?

Strapped

Yorkie1 wrote: »

When you bought the house, did you draw up any documentation to reflect your input, or to protect your rights?

I do hope so, or else the OP is screwed.

kingstreet

I've just had a PM asking a similar question about this. TBH I don't know the answer.

I'm not sure if a lender will do a simultaneous "one-on, one-off" transfer of equity. This would be adding the wife and removing the husband at the same time. Perhaps staggered transfers, add one, wait a while, remove the other?

Otherwise, the next option is to apply for a new mortgage to buy out the old one and pay off the partner at the same time. The deposit would be whatever the OP has "invested" in the property and would effectively be a purchase of equity.

Possible stamp duty implications at certain levels;-

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm
and need for a solicitor, of course.

poppysarah

Nicnol wrote: »

We have only been married 9 months :embarasse

Completely aside:
Is marriage counselling an option?