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House buy out advice please
JackRS
Posts: 1,063 Forumite
Not sure which room to put this in?
A friend of mine (Dave) has split with their former partner (Jill). They purchased a house together with a joint mortgage. Jill is buying Dave out of the property who is moving out once it’s sorted. Jill has had a contact created laying out the agreement in terms of the buy value and timing subject to mortgage etc. It also states that Dave will vacate the property within 14 days of receiving the agreed sum.
Recently Jill has presented a document from the lender for Dave to sign. This basically is to transfer the joint mortgage into a sole mortgage for Jill. The form starts with the following phrase ‘ I apply to you for consent to transfer the mortgaged property, subject to the mortgage with you, to the persons named below’ Then there’s boxes for them both to sign.
Dave is concerned that if he signs the transfer document this effectively signs over the house to Jill. Dave wonders if this could put him at risk in terms of receiving the agreed sum. I’ve advised him that he should obviously stay in the house until he receives the agreed sum. However I’m not an expert.
Is there any advice those in the know can offer to minimise any risk.
A friend of mine (Dave) has split with their former partner (Jill). They purchased a house together with a joint mortgage. Jill is buying Dave out of the property who is moving out once it’s sorted. Jill has had a contact created laying out the agreement in terms of the buy value and timing subject to mortgage etc. It also states that Dave will vacate the property within 14 days of receiving the agreed sum.
Recently Jill has presented a document from the lender for Dave to sign. This basically is to transfer the joint mortgage into a sole mortgage for Jill. The form starts with the following phrase ‘ I apply to you for consent to transfer the mortgaged property, subject to the mortgage with you, to the persons named below’ Then there’s boxes for them both to sign.
Dave is concerned that if he signs the transfer document this effectively signs over the house to Jill. Dave wonders if this could put him at risk in terms of receiving the agreed sum. I’ve advised him that he should obviously stay in the house until he receives the agreed sum. However I’m not an expert.
Is there any advice those in the know can offer to minimise any risk.
Regards
JackRS
JackRS
0
Comments
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Jill has had a contact created laying out the agreement in terms of the buy value and timing subject to mortgage etc. It also states that Dave will vacate the property within 14 days of receiving the agreed sum.
Presumably this contract has been signed and dated then doesn't this give Dave the comfort that he will receive the monies due?Start Feb 2013 £148,900
Initial MFD Feb 2043 --- Target Feb 2035
Current balance [STRIKE]Jan 2014 £146,652[/STRIKE], Nov 2014 £143,509
:beer:Current MFD Oct 2042 (5 Months Early) :beer:
2013 OP: £255 / 2014 OP: £8150 -
Make sure Dave signs the contract that Jill has set up outlining his compensation for leaving (ideally in the presence of a solicitor who is holding the funds promised in escrow) before he signs the mortgage transfer forms.0
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Fatenbread wrote: »Make sure Dave signs the contract that Jill has set up outlining his compensation for leaving (ideally in the presence of a solicitor who is holding the funds promised in escrow) before he signs the mortgage transfer forms.
OK thanks yes this the case. He's just worried although a contract in place if he doesn't get the money he would have to start some sort of proceedings that the contract hadn't been adhered to. This would take time and money.Regards
JackRS0 -
A contract is only binding once there's offer, acceptance and consideration.
The payment is the consideration, so without that there is no contract.
When the transfer of equity is passed to a solicitor, he will be advised to seek independent legal advice from another solicitor representing him alone. He should accept that advice and do so...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.0 -
IF this is to do with your wife/divorce Jack tear the document into tiny pieces and let the Judge decide on the financial split.When using the housing forum please use the sticky threads for valuable information.0
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