Remortgage-(Ex-moved out) Single Application

Sandy_Beech

Hi,

Thank you in advance.

Can't get my "head" round this. But think it can be done??

Ex moved out a while ago. House worth approx £130.000.

Mortgage in JOINT names. I'm still paying. (Outstanding balance £100,000).

QUESTION)
Can I buy the house I.e via a remortgage (existing or new company) in MY name only using the difference between as the deposit?? Therefore I only would need an £100k mtg, but the LTV would be approx 75% (ish).... Thus no "actual deposit handed over"
Does this make sense?

You may ask what do I need to give to her? I did a "trust deed" 7 yrs ago. Hence she would accept £5k... (I have this in an isa).. (It would all be completed via a solicitor)..

Is it possible? Thus I own the house. Thans again!

Have a great Christmas! & Thank You....

Consumerist

In the normal course of events you would need to buy-out your partner's interest in the property - half the equity or, from my understanding of what you have said, about £15k.

If you have another formal agreement to pay less, that would be sorted by both your solicitors at settlement. After settlement you would own the property outright (i.e. in your sole name).

holly_hobby

No, in order to remove your ex from the mge and deeds (assuming she is in agreeance), is for you to apply to your lender for a transfer of equity (TOE).

Their permission for your ex's release, will be based upon your own income being sufficien to service the mge (notwithstanding the fact that you are already paying this on your own at the moment).

The lender will wish the TOE to be conducted by a solicitor - and you're looking a fees circa £400 - £500.

If you lender refuses, or you wish to move lender for what ever reason at the same time as effecting the TOE, you may of course remortgage - ltv at 75% will be fine. Same principles apply, your status and income shall have to satisfy the lenders criteria. (NB - although you may source a fee free remortgage deal, this only applies to basic title change - you will have to pay for the TOE in addition).

If your own lender does refuse or you want to seek an alternative provider, I would recommend seeing a whole of market mge broker, whom will assess your status and source the most suitable lender and product for your requirements.

As a side issue, if your lender does refuse and you are unable to secure a different provider, the only way to break the association would be to sell the property - or wait until your situ improves enough to satisfy sole affordability criteria.

Hope this helps

Holly

Sandy_Beech

Consumerist wrote: »

In the normal course of events you would need to buy-out your partner's interest in the property - half the equity or, from my understanding of what you have said, about £15k.

If you have another formal agreement to pay less, that would be sorted by both your solicitors at settlement. After settlement you would own the property outright (i.e. in your sole name).

Thanks for this, But, wouldn't I need to apply for a "new" mortgage application, as the original one is in "joint" names and is not portable!

Hence wouldn't I need to give the new mortgage provider "a deposit" so to speak?!?!?!?!? I.e physical "cash"

Yes she will "walk" away with £5k.

Sorry!!!! I need a beverage!

kingstreet

You can remortgage to a new lender in your sole name, with the solicitor doing the conveyancing for the remortgage and the transfer of equity at the same time.

Be careful, lenders' "free-legals" offers mean you'd have to pay for the TofE legal work, you won't get that bit free.

As mentioned, the alternative is to have your former partner taken off the existing mortgage, then complete the TofE with the solicitor.

You'll need to be able prove affordability for both routes, with status checks and valuation needed for the remortgage.

Sandy_Beech

holly_hobby wrote: »

No, in order to remove your ex from the mge and deeds (assuming she is in agreeance), is for you to apply to your lender for a transfer of equity (TOE).

Their permission for your ex's release, will be based upon your own income being sufficien to service the mge (notwithstanding the fact that you are already paying this on your own at the moment).

The lender will wish the TOE to be conducted by a solicitor - and you're looking a fees circa £400 - £500.

If you lender refuses, or you wish to move lender for what ever reason at the same time as effecting the TOE, you may of course remortgage - ltv at 75% will be fine. Same principles apply, your status and income shall have to satisfy the lenders criteria. (NB - although you may source a fee free remortgage deal, this only applies to basic title change - you will have to pay for the TOE in addition).

If your own lender does refuse or you want to seek an alternative provider, I would recommend seeing a whole of market mge broker, whom will assess your status and source the most suitable lender and product for your requirements.

As a side issue, if your lender does refuse and you are unable to secure a different provider, the only way to break the association would be to sell the property - or wait until your situ improves enough to satisfy sole affordability criteria.

Hope this helps

Holly

Thank you so much for the response.

Couple of Q)

If TOE is okay, Mortgage is okay (affordability etc) all passes.. Then would I need a "cash" deposit. ? Apply for £100k (I can get a £120k) mtg (on my own)... Get £100k! and they use the remaining value I.e £30k approx as the LTV...?

Thank you!

Sandy_Beech

kingstreet wrote: »

You can remortgage to a new lender in your sole name, with the solicitor doing the conveyancing for the remortgage and the transfer of equity at the same time.

Be careful, lenders' "free-legals" offers mean you'd have to pay for the TofE legal work, you won't get that bit free.

As mentioned, the alternative is to have your former partner taken off the existing mortgage, then complete the TofE with the solicitor.

You'll need to be able prove affordability for both routes, with status checks and valuation needed for the remortgage.

Thank you!

If I complete all above, and lets say valuation comes back at 125,000. Thus I wouldn't need to hand over any "deposit" so to speak.. and I have my £100k mtg. ?

Thanks again! Merry Christmas... (Might call HSBC first thing)

Bluemeanie_2

No you don't need a cash deposit. The equity from your house is used.

holly_hobby

No, if you are effecting a TOE and remaining with the same lender - there is no deposit as such reqd, assuming thats the only change, ie you're not also changing mge product (discount, tracker, fixed etc) that may have a restrictive LTV.

If you remortgage to an alternative lender (with a simultaneous TOE), then your free equity (subject to valuation), acts as your deposit - so there is no requirement for any further capital injection (IF as I say it values up ok).

Hope this helps

H x

Sandy_Beech

holly_hobby wrote: »

No, if you are effecting a TOE and remaining with the same lender - there is no deposit as such reqd, assuming thats the only change, ie you're not also changing mge product (discount, tracker, fixed etc) that may have a restrictive LTV.

If you remortgage to an alternative lender (with a simultaneous TOE), then your free equity (subject to valuation), acts as your deposit - so there is no requirement for any further capital injection (IF as I say it values up ok).

Hope this helps

H x

Brill, thank you again!

I've not asked but I'm 99.9% sure I can't "use" the same (so to speak) mtg. As its an amazing product-in fact I'm only paying 0.19% (+base rate)... In which would be such a shame to give this tracker mtg up... But life is life and we both need to move on! (She is pushing as she needs a mtg on her own) in which I fully understand!

Thank you so much this really has helped!

holly_hobby

Ooh thats a lovely rate (and I thought mine was good !)

All things being equal, your mortgage product should be unaffected by the TOE exercise (if remaining with current lender, with no other material changes such as release of equity etc) .

Hope this helps

H x