Mortgage and deeds question

happy_witch

My husband and I have a buy to let house. We have just separated and getting divorced. We have a family home too which we will sell. Approx £60k equity in that one. In the buy to let there is no equity. Mortgage is £106,000 renters cover the mortgage and we have about £300 a month profit from it. My question is, as we are getting divorced, and he has agreed to me having this house back for me to live in, or continue renting, how do I get his name removed from the deeds? I am not sure I want to move back there (this was my home before we got married but he got on the deeds because we took some equity out). I don't earn very much, but obviously when our family home sells I may have about £30k which in theory I could plough into the buy to let therefore reducing debt to £76,000. I suppose I just need to know how do I get his name off the deeds and could I keep the current rate with the West Brom? thank you

Thrugelmir

You'll need to obtain a residential mortgage in your own right to purchase the property.

happy_witch

Thrugelmir wrote: »

You'll need to obtain a residential mortgage in your own right to purchase the property.

Even if I want to continue renting the house out to the same tenants?

Thrugelmir

happy_witch wrote: »

Even if I want to continue renting the house out to the same tenants?

Apologies. Thought you intended to live in the property.

To maintain the BTL mortgage. You'll need to meet the current requirements to obtain one. No equity in the property could be a major issue. As I assume you'll need the money released from your current home as the deposit on a new property in which to live.

happy_witch

Thrugelmir wrote: »

Apologies. Thought you intended to live in the property.

To maintain the BTL mortgage. You'll need to meet the current requirements to obtain one. No equity in the property could be a major issue. As I assume you'll need the money released from your current home as the deposit on a new property in which to live.

So W Brom just wouldn' t take his name off the mortgage and off the deeds? We haven't actually divorced, and I still own the other house so still have assets, they don't know we have separated. We also still have a joint bank account - gosh what a mess, ultimately I need somewhere to live though short term I want to keep it rented out as it generates money. Thank you.

kingstreet

Approach the lender for a transfer of equity. This involves the lender removing you former partner from the mortgage and the deeds to the property.

Once the lender has completed its bit, it passes the matter over to a solicitor to finalised the legal work.

The total cost should be between £400 and £600.

You both need to sign the transfer paperwork.

holly_hobby

There appears to be confusion here on what property your Husband has agreed for you to "have back" - can I clarify the following before advising .....

Is it the family home you are retaining (which in the same post you mention selling ?)
OR
Is it your former home, that you are to retain, which you say is currently let to tenants. Is this under a dedicated BTL mortgage OR (as this was prev your home) is this under a Consent To Let arrangement with your previous residential lender ?

That being said ....

If you are retaining the currently let property, do you intend to live in this property as your main residence ?

Or, do you intend to retain this as an investment, and source an alternative primary residence for yourself (once the family home is sold) ?

Is your current salary less than 25k (relevant to the BTL aspect).

The above will allow some relevant guidance to be given.

Holly

happy_witch

holly_hobby wrote: »

There appears to be confusion here on what property your Husband has agreed for you to "have back" - can I clarify the following before advising .....

Is it the family home you are retaining (which in the same post you mention selling ?)
OR
Is it your former home, that you are to retain, which you say is currently let to tenants. Is this under a dedicated BTL mortgage OR (as this was prev your home) is this under a Consent To Let arrangement with your previous residential lender ?

That being said ....

If you are retaining the currently let property, do you intend to live in this property as your main residence ?

Or, do you intend to retain this as an investment, and source an alternative primary residence for yourself (once the family home is sold) ?

Is your current salary less than 25k (relevant to the BTL aspect).

The above will allow some relevant guidance to be given.

Holly

I had a house before he moved in with quite a lot of equity. We needed to use the equity to buy our new family home. We did a buy to let on (my) home in order to purchase the new house. He had to go onto the deeds of my home. We jointly bought the new house. We are both joint owners on both properties. My old house is a buy to let which pays for itself. He has agreed I can have it back in order for me to keep renting it out for a bit of income for me. Our new house has to go on the market as he wants to move out of the area. There is about £60k equity in this house. There is no equity in the buy to let house. I would like to release him from the deeds of the buy to let - he wants to be released too. I earn only £12k a year. That is the huge problem. Thanks for trying to untangle it, sorry I wasn't more clear.

holly_hobby

Where will you live post family sale ?

Who is the current BTL lender ?

Thrugelmir

Have you consulted a solicitor yet?

happy_witch

holly_hobby wrote: »

Where will you live post family sale ?

Who is the current BTL lender ?

I am renting a room in a shared house which is grim and west brom is current lender Had the btl about 5 years. thanks