Selling My Wife's Property to Buy Another in My Own Name

tyor

My wife and I have been living with our two children in a flat she bought about 10 years ago. The kids are growing and we need more space and also need to start thinking about their Secondary School.

We've been discussing the idea of selling the flat to raise the deposit and clear some debt she has. Actually, the profit from a sale will leave us with enough money to also buy a second buy-to-let property after we've purchased a new home.

However, because of her adverse credit rating, any new mortgage would have to be solely in my name. Now, bearing in mind that the deposit would be stumped up from the sale of her only property possession and that her name won't be on the new property, is there anything I can do when buying or evening after buying the house to protect her "investment" and my credit rating if, God forbid, things ever get nasty and we contemplate divorcing? I initially thought about adding her name to the deed after purchase, but I'd need to inform the lenders about it which could ultimately spoil my rating were they to accept.

Expert advice would be most appreciated.

anselld

There is nothing else you need to do to protect her investment. You are married. Everything would be in the same pot anyway in the event of divorce.

tyor

Thanks. Probably a long shot; is there any legal document that we can have that would require the lender to inform my OH of any change request to the Mortgage terms such as for example, a remortgage or settlement based on selling of the property?

00ec25

she could put a charge against the property to the value of her deposit. That way if sold the charge would have to be paid before you (as owner/vendor) get your money

your own lender will not like this and will require it to be a second charge ranked after theirs

overall I think your scenario bizarre. If your relationship break down is at the stage where you are trying to sell or remortgage the property without her knowledge then she should be well down the route of divorcing you by that stage at which point, as anselld says, the default is she gets half of everything anyway as you are married

thequant

In the event of a divorce, it will make no difference if it's in your name, the wifes name or both your names.


When it comes to dividing assets, the judge will look at what you have collectively and divide from there. Not on who's name is on what.

Thrugelmir

thequant wrote: »

In the event of a divorce, it will make no difference if it's in your name, the wifes name or both your names.

Unless the property has previously been remortgaged and the money spent.........

Amongst other scenarios.

kingstreet

So you alone are going to buy a property, using her money as deposit. She'll live in the property and she won't be a party to the mortgage or ownership?

I think you may have a problem with that when you position it with potential lenders.