Name Removal from Mortgage

Hi.

I divorced from my x wife 3 years ago and left her with the house because we have 2 children and the house is in negative equity with loans secured against the property in both names separately.

I want to know what happens if once I cleared all the loans in my name attached to the house, how I go about removing my name.

Am I right in thinking that if the house was valued at £130,000 but we still owed £138,000, can i ask her to remortgage and give her £4000 to allow my name to be removed. ?

Can anyone please advise me.

Thanks

Colin.

Replies

  • ~Beanie~~Beanie~ Forumite
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    If the house is in negative equity, I doubt that you will be able to remove your name anyway.

    Once there is no NE, your ex will need to satisfy the lenders criteria for a sole mortgage, does she earn enough to get a mortgage of that size?
    :p
  • No unfortunately she doesn't.

    So would this mean She would have to sell the house and put the other £4000 towards it to make up the full amount. ?

    Im obviously not bothered about this as I have rented for the last 4 years because I can't get another mortgage. I have another child on the way with my new wife and we desperately want to buy our own home but i need to sort all this out first.
  • kingstreetkingstreet Forumite
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    In NegEq, the chances of a lender giving up half its chance to get its money back in the event of repossession, I'd sat the chances are slim and the other one.

    Nothing to stop you buying again, as long as your new lender is happy with the other mortgage in the background. Affordability, is of course, key to this.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • I must explain that my eldest child is now in Uni and my youngest of 15 would love the opportunity to come and live with me anyway.
    Just in case you thought i wasn't bothered about my kids going without a home
  • TBagpussTBagpuss Forumite
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    When you divorced, what did your order say about the house? It may be that once your son leaves school, provided that the property is no longer in negative equity, that you would be able to force a sale if your ex wife is not, at that time, in a position to get your name off the mortgage.

    you will only be able to get your name taken off if:
    1. the mortgage lender agrees, which they will only do if they are satisfied that our wife can afford the mortgage on her own.
    2. The house is sold and the mortgage paid off in full
    3. Your ex wife is able to remortgage to pay off the existing mortgage (either on her own, or with a new partner. She won't be able to do this when the property is in negative equity)

    If you did not have an order when you got divorced it may be sensible to think about getting one done now. It would be possible for an order to provide that she musts get you released from the mortgage by a specific date (e.g. once the youngest child leaves school, or once the property is out of negative equity, whichever is later) failing which the house has to be sold.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
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