Mortgage and deeds question

holly_hobby

Hi,

I presume that you intend to stay in your house share rather than move into your currently rented property ?

If this isn't the case, as soon as you do re-occupy you will have to inform the lender of the change. They should then apply residential lending criteria to you, and move you onto a residential mge and rate (if accepted).

West Brom (AFAIK) are no longer in the market for new BTL business, so whether they will permit the TOE whilst allowing you to retain the mge is another thing - indeed they may well use any change to the mortgage via the TOE, as an excuse to off load this high risk business (as they were heavily over exposed in commercial lending and (along with others) came a right cropper in the industry collapase we witnessed).

If thats the case, you will be forced to remortgage in order to effect the TOE and remove your ex from the deeds (and beneficial ownership) and mortgage for your ex-home.

Have you spoken to W Brom about this TOE requirement, and are they happy to retain the business post amendment ? (which shouldn't affect the current rate you're on if they do agree).

As this is the first thing you need to look at, as if WB don't want to play, we've all soughts of possible issues arising.

Hope this helps

H x

happy_witch

Thrugelmir wrote: »

Have you consulted a solicitor yet?

Yes he said to speak to my mortgage advisor. And I have, just awaiting for him to come back to me.

happy_witch

holly_hobby wrote: »

Hi,

I presume that you intend to stay in your house share rather than move into your currently rented property ?

If this isn't the case, as soon as you do re-occupy you will have to inform the lender of the change. They should then apply residential lending criteria to you, and move you onto a residential mge and rate (if accepted).

West Brom (AFAIK) are no longer in the market for new BTL business, so whether they will permit the TOE whilst allowing you to retain the mge is another thing - indeed they may well use any change to the mortgage via the TOE, as an excuse to off load this high risk business (as they were heavily over exposed in commercial lending and (along with others) came a right cropper in the industry collapase we witnessed).

If thats the case, you will be forced to remortgage in order to effect the TOE and remove your ex from the deeds (and beneficial ownership) and mortgage for your ex-home.

Have you spoken to W Brom about this TOE requirement, and are they happy to retain the business post amendment ? (which shouldn't affect the current rate you're on if they do agree).

As this is the first thing you need to look at, as if WB don't want to play, we've all soughts of possible issues arising.

Hope this helps

H x

Thank you, speaking to wb tomorrow. x

holly_hobby

Good stuff ... fingers crossed .... and keep us posted

H x

happy_witch

holly_hobby wrote: »

Good stuff ... fingers crossed .... and keep us posted

H x

Hmmm, they said no, they won't allow any amendments and no longer doing btl......flip!

holly_hobby

happy_witch wrote: »

Hmmm, they said no, they won't allow any amendments and no longer doing btl......flip!

As I said, I did think this would be the case, as they exited the BTL market some time ago ....

Whats your next move .... ?

H

happy_witch

holly_hobby wrote: »

As I said, I did think this would be the case, as they exited the BTL market some time ago ....

Whats your next move .... ?

H

I don't know - as you seem to know a lot, is it possible do you think - if we keep it as a btl with w brom, my husband and I are getting divorced the house currently is in negative equity - is it possible that we have a legal document drawn up releasing him for any interest in the property, even though his name is still on the mortgage? maybe I could move back in and remortgage, though I hardly earn anything - I just don't know. Thank you for your reply anyway.

holly_hobby

Ah, I think this is the first time you have mentioned neg equity - this would have possibly affected the application with W Brom in any event, as typically lenders don't like to release mortgagors where there is a negative equity situation ...... anyhoo they said no for other reasons, so thats academic now.

You could certainly have a legal agreement drawn up that upon disposal of the property your ex has forfeited his right to any free equity.

Whether he will do this, bearing in mind that whilst he reamins joint mortgagor, he also remains jointly and severally (singularly) liable fo the mge debt with you, with none of the benefits, is another thing - and if he takes legal advice on it you may well find that he declines the offer. But yes, its an option you could put to him.

Can I suggest that the £300 rental income profit you generate is paid off the os mge debt, to try and reduce your borrowings and deal with the negative equity situation you find yourself in right now

Hope this helps

Holly

happy_witch

holly_hobby wrote: »

Ah, I think this is the first time you have mentioned neg equity - this would have possibly affected the application with W Brom in any event, as typically lenders don't like to release mortgagors where there is a negative equity situation ...... anyhoo they said no for other reasons, so thats academic now.

You could certainly have a legal agreement drawn up that upon disposal of the property your ex has forfeited his right to any free equity.

Whether he will do this, bearing in mind that whilst he reamins joint mortgagor, he also remains jointly and severally (singularly) liable fo the mge debt with you, with none of the benefits, is another thing - and if he takes legal advice on it you may well find that he declines the offer. But yes, its an option you could put to him.

Can I suggest that the £300 rental income profit you generate is paid off the os mge debt, to try and reduce your borrowings and deal with the negative equity situation you find yourself in right now

Hope this helps

Holly

Thank you, you seem to know a lot about this mortgage stuff. At the moment, the tenants pay him and he keeps the money - presumably so when they need stuff done, he will arrange it, as I said we are newly separated - this is my plan - god knows how I will do it. Our family home is going on the market, there is appprox £60k equity, if we split it 50/50 (this is all hypothetical you realise) I would pay my 50% off the btl therefore reducing it to £76,000. And either carry on with the btl or remortgaging and me moving back in there. The fly in the ointment is, I would not get a mortgage for £76,000. I only earn about £12000 a year. I realise this has to change and I need to get a full time job - the time of the year isn't great,not to mention the economy. I suppose you have given me a bit of hope that we can have a document drawn up - he is happy to hand that house back to me (it was mine originally) especially as it is in negative equity. Would I be able to get a mortgage if I had a guarantor? Thank you so much for taking the time to reply, I really appreciate it. Thank you. x

Thrugelmir

happy_witch wrote: »

my husband and I are getting divorced the house currently is in negative equity - is it possible that we have a legal document drawn up releasing him for any interest in the property, even though his name is still on the mortgage? maybe I could move back in and remortgage, though I hardly earn anything - I just don't know. Thank you for your reply anyway.

As part of the divorce process you'll need a consent order drawn up. Which will set out the agreement with regards to the division of your financial affairs. Your ex is highly likely to be advised not to sign any such agreement to remain on the mortgage.

Personally I would expect you to have to sell your joint assets in order to come to a satisfactory outcome.