Question about removing one person from a BTL Mortgage

Trickyann

Advice please and suggestions as to anything I may not have thought of - I have a BTL mortgage with an ex partner. We agreed to continue as a business venture when we split 3 years ago mostly due to the fact it wasn't a good time to sell. I am considering buying him out as it is me doing all the work for repairs problems and paperwork for tax for no return other than my 1/2 share of the rent and I would prefer to have no financial link. Am only in the position to do this now as my residential mortgage is now paid : ) I am trying to crunch numbers and think of what needs to be done/cost. The current mortgage is SVR so we were going to re mortgage anyway and my earnings should be fine as I intend to reduce the amount by 7/8K to bring it to 70% ltv to get better deals. I assume the deposit would need to be re protected and a new TA put in place with current tenants. (they are on stat periodic) Could the removal of other party be done at the re mortgage or would it have to be done first and any idea of the cost? The house is owned at LR as 50/50 in common, so would I need a separate solicitor to do the legal bit at the L Registry? Happy to give more details if needed.


Thanks in advance

kingstreet

It's a transfer of equity during the remortgage process and yes, a solicitor will need to handle it.

Approx cost £450 to £600, but perhaps less as solicitor handling remortgage already.

Other party will have to agree to ToE.

Trickyann

Thanks for that, ex partner is happy to sign over (payout to buy him out depending of course)!

Trickyann

To clarify, I would just apply for the re mortgage as I would have done with ex partner but obviously apply in sole name. Often these things are done by the legal team for the mortgage company, so as its a little more complicated would you advise using a local solicitor separately to the mortgage deal or is this something they come across quite often?

kingstreet

You apply for the mortgage as usual.

You are unlikely to get free legals on a BTL remortgage, so you'll be paying yourself, so get the best solicitor you can for the money.

Trickyann

It is with the PO and it does have Free standard legals paid so I guess I would just pay the extra?

kingstreet

Trickyann wrote: »

It is with the PO and it does have Free standard legals paid so I guess I would just pay the extra?

If their free-legals brigade will do non-standard work.

Some won't/don't even if you are prepared to pay for the extra work.

Trickyann

Thanks Kingstreet, thinking about it... it would probably be best to have someone who has my interests at heart rather than the mortgage provider and then me.

kingstreet

If you can find one, take a deal with £250 or whatever towards legal costs and hire a solicitor of your own.

It won't cover all of the cost, but you'll get a better service and you are less likely to find them insisting the party leaving has to get separate legal representation, otherwise they won't do it.