Relationship breakdown - how to move forward? (transfer of equity?)

Manchester_Lucy

I know that this has probably been discussed previously but I'll give it a go anyway.

As some of you know I bought my house towards the end of last year. However over the past few days my relationship with DP has broken down and we have both agreed to go our separate ways with me staying in the house with our son.

When we did all the legal stuff we didn't opt for a deed of trust it was just a jointly owned venture.

My question is do I have to inform the mortgage company that DP (ex) is leaving the property an has agreed to have no claim on the property or any future equity or can I just agree this with him and not tell the mortgage company? I can just about afford the whole mortgage (roughly £118,000) on my own but it will be a struggle.

I may also have an option of my sister taking over half of the mortgage but not living in the property as she is living with her partner in his property that he owns. Would this be straight forward or is it going to really cost me?

As you can imagine money is going to be tighter for a little while so I'm dreading forking our for lots of legal fees or a new valuation etc.

Any advice would be gratefully received! :A

CHR15

Hopefully someone can explain this but I am in a similar position.

I moved out of our marital home and would like to give up the whole lot to my ex as a Clean Break.

Unfortunately I am financially tied to it so I can't simply walk away even though there is over £70K equity in it.

My ex has to obtain a mortgage on her own to take it over (which she cannot do as she doesn't earn enough)

she does pay the mortgage on her own now so I no longer contribute, but it is still in joint names as far as a financial liability goes.

Ultimately, I can not get off the deeds as they will still chase me for the mortgage payments if my ex fails to meet them.
This would be the same for you.

If you could get the mortgage for the whole amount, I am sure he could simply sign it over to you.

Debt_Free_Chick

Manchester_Lucy wrote: »

I know that this has probably been discussed previously but I'll give it a go anyway.

As some of you know I bought my house towards the end of last year. However over the past few days my relationship with DP has broken down and we have both agreed to go our separate ways with me staying in the house with our son.

When we did all the legal stuff we didn't opt for a deed of trust it was just a jointly owned venture.

My question is do I have to inform the mortgage company that DP (ex) is leaving the property an has agreed to have no claim on the property or any future equity or can I just agree this with him and not tell the mortgage company? I can just about afford the whole mortgage (roughly £118,000) on my own but it will be a struggle.

Absolutely not. At present, you have a joint mortgage (I think?) so you are both jointly liable. You need to remortgage or simply ask the current lender to put the mortgage in your name only. Alongside of this, you currently both own 50% (?) of the property - you need to have 100% ownership, so his half needs to be transferred to you. These two things can happen together - if you remortgage for the whole amount, then the conveyancing process will also transfer the whole property to you.

I may also have an option of my sister taking over half of the mortgage but not living in the property as she is living with her partner in his property that he owns. Would this be straight forward or is it going to really cost me?

It should be relatively straightforward. You would remortgage to transfer the debt from you and ex to you & sis. As part of the conveyancing process, ownership of the property would be transferred from you & ex to you & sis.

She would probably have a tax position to consider, in that she would almost certainly be liable for Capital Gains Tax on her half of any profit, if and when you sell. Has she thought about this?

As you can imagine money is going to be tighter for a little while so I'm dreading forking our for lots of legal fees or a new valuation etc.

Any advice would be gratefully received! :A

Many remortgage deals package free valuations & free legal work. Worth asking your existing lender and then also shopping around.

lynzpower

Lucy

im really sorry to hear that I remember jsut how excited you were when you were moving in.

have you sought good quality legal advice on this? What will be your Ex's contribution to the family home after he has left?

mightymouse

Manchester_Lucy wrote: »

I know that this has probably been discussed previously but I'll give it a go anyway.

As some of you know I bought my house towards the end of last year. However over the past few days my relationship with DP has broken down and we have both agreed to go our separate ways with me staying in the house with our son.

When we did all the legal stuff we didn't opt for a deed of trust it was just a jointly owned venture.

My question is do I have to inform the mortgage company that DP (ex) is leaving the property an has agreed to have no claim on the property or any future equity or can I just agree this with him and not tell the mortgage company? I can just about afford the whole mortgage (roughly £118,000) on my own but it will be a struggle.

I may also have an option of my sister taking over half of the mortgage but not living in the property as she is living with her partner in his property that he owns. Would this be straight forward or is it going to really cost me?

As you can imagine money is going to be tighter for a little while so I'm dreading forking our for lots of legal fees or a new valuation etc.

Any advice would be gratefully received! :A

Just an alternative thought but you seem to be playing into his hands by taking this liability from him, the court eventually (if married) would put the current mortgage in your name with financial assistance where necessary and he still continues for now with his liability.

It might be a safer alternative where children are concerned and equity does not really figure in your scenario much at all for the present.

You do not say whether or not you are married or if your Ex is in a good job but for now it might be better to let him continue paying toward his responsibility and keep a roof over your head.

You do not say if he has actually moved out but if he has can 't you get financial assistance from dss?

Manchester_Lucy

Thanks guys!

No we're not married. It's all been agreed amicably so hopefully there will be little problem with the process.

My sister is extremely interested in taking over a share of the house. Her DP owns his house outright so there is no mortgage to pay and she is not on the deeds. She has no other property so this is her way of getting onto the property ladder in her own right. I guess she will still be liable for CGT though as it won't be her main residance at my house.

Will I definitely need to arrange a remortgage? Can't they just check that my sister's credit is good and then replace her onm the mortgage and I arrange for the conveyancing process and changing of deeds with the solicitor? I have no penalties for ending the current mortgage but I don't want to start paying arrangement fees etc all over again so soon.

HelzBelz

This happened to friend a few years ago, instead of re-mortgaging they just arranged for the leaving persons name to be removed from the mortgage and deeds

Gem_

It might not be too expensive.

I did this a couple of years ago - my "partner" and myself bought the house as I couldn't get a mortgage in my own right (due to having a pants income" after about a year I approached the bank and asked to have him removed from the mortgage (and because I had a history of making payments on time they agreed, even though 'on paper' I can't afford it). It cost me £250 fee from the bank and had to pay a solicitor £350 to sort out the deeds / land reg.

HTH

Gem

irnbru_2

Manchester_Lucy wrote: »

My sister is extremely interested in taking over a share of the house.

Invest time/money and get something drawn up between yourself and your sister that protects you for a few years from a forced sale.

Her DP may become her EP ...

thesaint

lynzpower wrote: »

Lucy

im really sorry to hear that I remember jsut how excited you were when you were moving in.

have you sought good quality legal advice on this? What will be your Ex's contribution to the family home after he has left?

Hopefully the ex boyfriend will seek good quality legal advice and be told it will no longer be the 'family' home, but his ex partners.

So no contribution is necessary.