Wife leaving me with house

PeterJames123

Hi All,

My wife and I are sadly separating and she would like her share of the house. I understand that I need to apply for a new mortgage but does mean I can also pay off more of the house value to reduce my mortgage. The mortgage was 96k we have paid around 11k of this. Do I then need to apply for a mortgage of 85k? I have enough savings to pay my wife 8k and would then like to pay another 10 to bring the.mortgage right down to 75k. Is this possible?

holly_hobby

Hi PJ,

Sorry for the purpose of your post ... but will try to help.

You will effectively be applying for a transfer of equity (TOE) from your lender, re removing your wife from the mge and deeds and leaving them just in your name.

Obv the lender will want to ensure that you have sufficient salary to service the mge on your sole income, but that all being ok, this shouldn't be an issue - there may be an admin fee and solicitor fees will be circa £400 - £600 depending upon where you are in the UK.

You can as a separate exercise, also ask to make a lump sum reduction, if you are currently under a mge product with ERPs, ensure that you time or split your lump sum reduction accordingly, to avoid any repayment penalty fees (your lender will advise and guide you).

Hope this helps

Holly x

kingstreet

In completing a transfer of equity, you can approach your existing lender for the name change and any additional borrowing, if needed.

Alternatively, you could apply for a remortgage with a new lender in your sole name. If you need to borrow less, apply for the smaller amount and pass the amount you wish to "inject" to your solicitor near to completion.

The legal process which follows is the same in both cases.

As hh said, avoid making payments which may result in the payment of an early repayment penalty.

PeterJames123

Hi,

Thanks for the reply.

I have basically had an email today that has really thrown a spanner in the works.

Our house was originally purchased for 130k 80/20 shared equity. We paid 8k in cash to bring the mortgage down to 96k.

The 20% owned by the builders, today sent an email saying the second charge (20%) has been taken over by Prospect (GB) Ltd from Lowry Homes who have gone into administration. This means that there is a legal obligation to repay the monies within the timescale set out in the legal documentation. If you re-sell the property, the 20% has to be repaid before the transaction can be completed.

We have two years left to pay the 26k as it was a 5 year interest free timescale and we purchased the house in

If I am to remove my wife from the deeds would that be classed as re selling because I do not have the 26k to pay Prospect (GB) Ltd

Currently the costs to live here are £1,070.50, which includes mortgage, council tax, food, phone, insurance etc. I currently earn £450 part time and was about to become a freelance photographer before my wife decided to separate.

Any help here would be great as I have not slept in 2 days.

Annisele

Unfortunately I think you're really going to struggle, and you might want to think about selling.

A mortgage of £75k on a salary of £5,400 a year is unlikely to be possible - unless you've got *substantial* income coming in from elsewhere. Lenders won't take into account the income you're going to earn when you go freelance, they'll care about the income you've actually got coming in now.

Edit: I see from your other post that your income is now going to be more like £21k. A £75k mortgage on that wage is tight - especially with child maintenance and other expenses - but it no longer looks like pie-in-the sky.

PeterJames123

Annisele wrote: »

Unfortunately I think you're really going to struggle, and you might want to think about selling.

A mortgage of £75k on a salary of £5,400 a year is unlikely to be possible - unless you've got *substantial* income coming in from elsewhere. Lenders won't take into account the income you're going to earn when you go freelance, they'll care about the income you've actually got coming in now.

Edit: I see from your other post that your income is now going to be more like £21k. A £75k mortgage on that wage is tight - especially with child maintenance and other expenses - but it no longer looks like pie-in-the sky.

wow loose wife, daughter and house because she had an affair! on top of that she gets a brand new flat worth £650 pcm, all paid for by the government and a ton of benefits!

How can I sell the house if I don't fully own it. Prospect own 20% and have said they want money first.
l

UsernameAlreadyExists

It seems like life isn't fair, and you're going to go through a sh1te time.

You might have to rent a crap hole and find solace at the bottom of a bottle for a while.

However, you'll eventually find someone else, and you'll partner up and things will start to look brighter.

I went through a divorce and it really was f*cking sh1te.

Many years later it's all changed.

Chin up, handle the crap, and concentrate on your business. There will be light at the end of the tunnel.

You haven't lost the daughter, she's just living elsewhere.

You'll look back on this and laugh.

PeterJames123

and you wonder why people commit suicide! This country makes it so easy for a women to leave a marriage no wonder why so many do. They Have a weight over you your entire life if you have a child with them. Not one person she called while declaring her self seperated suggested any form of marriage guidance or councling.

holly_hobby

I don't really want to comment on the views you've posted.

Getting back to your housing issues, if you don't have the income to support her release, then she will have to stay on the mge until your income does improve, or until you sell the property.

I would also obtain some advice from a family law solicitor re your position.

Holly x