Any idea of a rough cost for removing a name from a mortgage?

HurdyGurdy

The girl had a mortgage with an ex partner. When they broke up, the house was in negative equity so they couldn't sell, he couldn't afford to buy her out, and she couldn't afford to buy him out. So he stayed in the property, she just walked away.

The agreement was that as soon as practicable, he would have her name taken off.

Several years have passed, and her name is still on the mortgage. Last time she spoke to him, he said that he had applied for a remortgage in his sole name, which had been accepted. When she checked with their mortgage provider, they knew nothing about it.

The girl now needs to leave the area they live in and move away. Having her name on that mortgage means that she now, as a single parent, is ineligible for income support (has got a young baby) or housing benefit, which she will need if she is to rent a property, either via social housing, or private.

Having her name on this mortgage is the barrier to her moving on with her life. The house is still in negative equity.

Does anyone have a rough guesstimate as to how much it might cost for this to be done, and an idea of the process?

TIA

Firefly

When I was in a situation where I wanted ex's name removed from the mortgage I had to wait 7 yrs until I earned enough to take over the mortgage for myself, despite the fact I was paying it by myself anyway. I needed to apply for a new mortgage and pay the fee that cost. Unfortunately it wasn't as simple as taking a name off.

Kayalana99

Shes spoken to her mortage company why does she not just ask them about it? I am not sure its so much about cost but more if they will let her (and if they do the fee's depend on the orignal mortage offer)

Not having a go but think you would get better answars on the mortage board then this dont think it would hurt for a double post as thier are mortage advisors trawling thier.

Good luck

pigpen

It is £400 to have the deeds transfered from joint names to single name, however, it is not possible to remove one name from the mortgage the house has to be remortgaged so the single owner has to have the same checks etc as if they are moving to a new property and both parties have to sign the old mortgage off.

I have literally just gone through this with the deed transfer completing next week.

Having her name on a mortgage does NOT stop her claiming housing benefit or income support nor does it stop her getting a mortgage elsewhere so if she says it does, she is lying! because That is exactly what my XH and I are doing/have done.

Brighton_belle

pigpen wrote: »

Having her name on a mortgage does NOT stop her ... getting a mortgage elsewhere

That can't be so can it pigpen? Surely to get another mortgage, on the application you have to declare all other such financial committments. As long as she is on one mtg, the new mtg company would see her as too big a risk to loan more money to?

lilymay1

Brighton_belle wrote: »

That can't be so can it pigpen? Surely to get another mortgage, on the application you have to declare all other such financial committments. As long as she is on one mtg, the new mtg company would see her as too big a risk to loan more money to?

It is highly unlikely, virtually impossible infact, that she will be able to get another mortgage whilst still named on the previous one. As you say, too bigger risk unless she's a millionaire. A joint mortgage won't necessarily stop her claiming income support or housing benefit though she would need to declare all that on the forms.

My husband has just been through this with his ex partner, although he was the one walking away and his ex wanted the mortgage in her name alone. She had to re-apply to their current lender as the house was in negative equity and they agreed to give her a new mortgage. Her income was quite significant though. Solictor fee's were in the region of £3k I believe.

BobQ

HurdyGurdy wrote: »

The girl had a mortgage with an ex partner. When they broke up, the house was in negative equity so they couldn't sell, he couldn't afford to buy her out, and she couldn't afford to buy him out. So he stayed in the property, she just walked away.

The agreement was that as soon as practicable, he would have her name taken off.

Several years have passed, and her name is still on the mortgage. Last time she spoke to him, he said that he had applied for a remortgage in his sole name, which had been accepted. When she checked with their mortgage provider, they knew nothing about it.

The girl now needs to leave the area they live in and move away. Having her name on that mortgage means that she now, as a single parent, is ineligible for income support (has got a young baby) or housing benefit, which she will need if she is to rent a property, either via social housing, or private.

Having her name on this mortgage is the barrier to her moving on with her life. The house is still in negative equity.

Does anyone have a rough guesstimate as to how much it might cost for this to be done, and an idea of the process?

TIA

Is her XP to paying rent on her share of the property?

pigpen

Brighton_belle wrote: »

That can't be so can it pigpen? Surely to get another mortgage, on the application you have to declare all other such financial committments. As long as she is on one mtg, the new mtg company would see her as too big a risk to loan more money to?

yes it is.. my xh has a joint mortgage and bank loan with me and a mortgage in his own name.. I believe it is with Halifax so not some unknown mickey mouse company. I cannot buy him out of our mortgage but the deeds transfer means the house is mine but if I default on the mortgage he is jointly liable for it. He also has no claim on the profit should I sell it.

He was earning about £1700 a month when he got the second mortgage and was made redundant a few months later

Treevo

BobQ wrote: »

Is her XP to paying rent on her share of the property?

She's not paying her share of the mortgage so why would he?

peachyprice

She can't just take her name off the mortgage, her ex has to re-mortgage, there is no other way, no matter how much she was willing to pay.

notanewuser

pigpen wrote: »

yes it is.. my xh has a joint mortgage and bank loan with me and a mortgage in his own name.. I believe it is with Halifax so not some unknown mickey mouse company. I cannot buy him out of our mortgage but the deeds transfer means the house is mine but if I default on the mortgage he is jointly liable for it. He also has no claim on the profit should I sell it.

He was earning about £1700 a month when he got the second mortgage and was made redundant a few months later

But that depends entirely on the figures involved and the lending criteria of the bank.

And you haven't actually removed him from the mortgage, it's still a potential liability for him!!