Transfer of Equity - Someone Please Help!

jammy78

Hi all, I need some advice on how to got about this transfer of equity to get my ex partner off the mortgage.

Some back ground

House value = 212K
Mortgage = 180K
Buy out of ex = 8K
Time with mortgage = 8 months.

Now I want to tranfer her off the mortgage and at the same time get additional borrowing (i.e. 8k to buy her out).

I got these questions:

1. Will Alliance & Leicester do this without a problem? I am worried they won't because on paper I will not earn enough to cover repayment, bills etc... but I am planning to rent it out! Can they refuse and keep her name on the mortgage?

2. Also with this additional borrowing would it be best for me to take it as interest only as it would be cheaper?

3. Would it be best to get another name on the mortgage i.e. my dad?

All I want is to get my ex off the mortgage and get an additional 8K? What is the best way as money / credit is going to be tight?

Thanks a lot!

silvercar

1. They can refuse. At the moment you are both liable to repay the loan, by removing her name they can only turn to you for repayment - a riskier loan for them. Renting it out would mean a new set of lending criterea - does the rental income cover the mortgage payments?

2. Interest only is cheaper BUT it doesn't repay the loan.

3. Could help. provided your Dad hasn't alraady got a large loan in relation to his income. Do you want to give your Dad the liability for your mortgage?

mightymouse

1. Will Alliance & Leicester do this without a problem? I am worried they won't because on paper I will not earn enough to cover repayment, bills etc... but I am planning to rent it out! Can they refuse and keep her name on the mortgage?

I doubt they would consider anything other than redeeming the loan.

The lender would probably not release your Ex.

I also doubt there is any equity say in a forced sale situation less costs.

2. Also with this additional borrowing would it be best for me to take it as interest only as it would be cheaper?

If you ask them without anything else and can convince that you have alternative means to repay I.E. pension etc they might go to interest only.

3. Would it be best to get another name on the mortgage i.e. my dad?

Yes try to replace your ex with your dad else remortgage elsewhere required.

All I want is to get my ex off the mortgage and get an additional 8K? What is the best way as money / credit is going to be tight?

See earlier comment re equity.

jammy78

Hi,

Thanks for the replies!

The rental income would not cover the cost of the mortgage repayments, but this will only be for a year until my current loans are finished then I can take over on my own!

Am I giving her to much (8k)?

A&L will charge £6K for ending the mortgage early?

What should I do?

1. Try to tranfers and get additional money

2. Remortgage with my dad?

3. Just sell the house?

4. Keep the house together and rent it out?




This is really a mess!!!!!!

rocky_robin

Alliance and Leicester will also charge £150 to agree to the transfer, they will lend additional money but it's at the full rate of interest, on top of your current loan plus they charge another £150 on top

I used an on-line solicitor who charged another £400 for the legal work involved

This was just to buy my brothers half share in my house and took around 10 weeks to complete

At the end of it once all the paperwork was done, because I was outside the 2 year penalty period they will switch me to a cheaper product or I can remortgage elsewhere

Sarahsaver

Getting someone off the mortgage is not the same as a transfer of equity. The equity is who is on the DEEDS. Lucky OP only having to give the ex 8 thousand!
The court deal with the transfer on the title deeds, also the land registry. Have you had a financial settlement through the courts?
I am with A&L and they are going to take the ex off the mortgage but only because he has gone 'missing' and I can prove that.

jammy78

Sarahsaver wrote: »

Getting someone off the mortgage is not the same as a transfer of equity. The equity is who is on the DEEDS. Lucky OP only having to give the ex 8 thousand!
The court deal with the transfer on the title deeds, also the land registry. Have you had a financial settlement through the courts?
I am with A&L and they are going to take the ex off the mortgage but only because he has gone 'missing' and I can prove that.

It hasn't gone through the courts yet! I think I'm paying to much as if we were to sell, we would come out with nothing - in fact probably loose money.

homer_j_3

Sarahsaver wrote: »

Getting someone off the mortgage is not the same as a transfer of equity.

Yes it is. The courts can award one party to be removed from the title deeds so the other party can have the freedom to do what they want with the property. The courts however, have no legal rights to demand that the lender agrees to a transfer of equity and remove the same party from the mortgage.

Not picking Sarah as I understand what you were getting at - just wanted to clarify that a TOE is the process of removing and/or adding a party to a mortgage.