Transfer of equity problem.

swstevewil

Hello I have recently received a remortgage offer with a view to providing my wife with an amount of equity for her to use as a deposit on her own house with her name coming off the deeds and me paying a transfer of equity fee as we are splitting up. I have received today a letter from the lenders solicitors who are handling the conveyancing.
They are asking me to tick either box A which is confirming that the transfer in equity is part of a divorce, separation or dissolution of a civil partnership. If ticked I need to provide a relevant copy of a Court Consent Order, Separation Agreement or otherwise. Which a quick google search shows it could take us months to obtain.
Tick box B which is it is not in connection with divorce e.t.c and so therefore no documents required.
We do intend to divorce but figured we would sort our living arrangements and mortgages with the costs involved first. My wife is asking for me to tick no so as not to further delay the process any further. then just carry on with the divorce in our own time.
I am in agreement with this but I can't contact the lender or the solicitors today to see if this is a valid option. Would the lender refuse the mortgage if I went down this road.

Thrugelmir

If you don't tick A then you are lying when making the declaration. Suggest to speak to your solicitor before deciding the next move. There's no reason why you shouldn't agree the division of financial assets now. Normally a straightforward process.

swstevewil

There is a reason, that being we are both currently shelling out for mortgage administration fees, solicitor conveyancing fees e.t.c and could do with the divorce fees coming later, as we don't have bottomless pockets to fill the pockets of solicitors.
Also my wife has an offer on a house accepted at a good price. The delays involved while a judge deciding whether our agreement between ourselves is valid based on solicitors form filling could mean she loses that house and both our remortgage and mortgage offers expire.
Not lying also is it. We are still legally married but she has her house and I have mine.

kingstreet

swstevewil wrote: »

I can't contact the lender or the solicitors today to see if this is a valid option. Would the lender refuse the mortgage if I went down this road.

You need the "horse's mouth" answer when they are open. Speculation on an internet site is not going to be definite, or helpful.

Thrugelmir

swstevewil wrote: »

Not lying also is it. We are still legally married but she has her house and I have mine.

Then we differ.

They are asking me to tick either box A which is confirming that the transfer in equity is part of a divorce, separation or dissolution of a civil partnership.

swstevewil

I know Kingstreet and I do intend to do this monday morning but the problem I am having is, if this is the case for all the couples in the same situation then why didn't neither mine and my wifes brokers state that "before you can proceed then you will need a piece of saying that you are legally separated".

swstevewil

Thrugelmir. Not legally separated at time of mortgage completion so don't have documents so not lying.

Thrugelmir

swstevewil wrote: »

Thrugelmir. Not legally separated at time of mortgage completion so don't have documents so not lying.

Normally people do separate well before the formalities of the divorce are formalised.

why didn't neither mine and my wifes brokers state that "before you can proceed then you will need a piece of saying that you are legally separated".

Brokers are in the mortgage business. They'll of expected you to have sought the advice of your solicitor as to the best way to proceed with your separation.

kingstreet

swstevewil wrote: »

if this is the case for all the couples in the same situation then why didn't neither mine and my wifes brokers state that "before you can proceed then you will need a piece of saying that you are legally separated"

Perhaps because the broker has never come across the perfect storm of your circumstances, your solicitor and your lender?

I know a lot, but I'd never think I know everything.

chanz4

if you go for b, wont that allow her then a further claim at a later date as not a divorce settlement amount

Thrugelmir

chanz4 wrote: »

if you go for b, wont that allow her then a further claim at a later date as not a divorce settlement amount

Without a Financial Consent Order then nothing is set in stone.