Hypothetical situation re selling.

PeonySugar

I don't have much knowledge on this area and as an anxious person I feel that if I knew what would happen, it would put me at ease.

If two people were to split up, what is the process of selling the house if you still have a mortgage to pay? Do you sell the house and then the money you get from the sale, does that pay the mortgage off and then if there's any remainder it get split between the two people, so you don't have a mortgage anymore?

Thanks in advance.

bazzyb

Pretty much, yes.

Richard_Webster

But both of you have to agree the terms of the sale and both have to sign the sale contract and transfer. The other may not agree.

flashg67

Sadly, I've had to just what you say. Or. if one of the couple wants, and can afford it, they can look to take on the whole mortgage and buy out the other person's share

TBagpuss

Pretty much, yes. The mortgage is the first call on the sale proceeeds.

If one of you wanted to buy the other out then that person would need to get the mortgage lender's consent to transfer the mortgage into their sole name, or alternatively, they would need to get a new mortgage in their sole name and then that would pay off the old one, in the same way as if the house was being sold to a third party.

p00hsticks

You also need to bear in mind that in the worst case scenario, by the time you factor in Estate agents and solicitors fees as well as the outstanding mortgage, there may not be any positive equity in the prperty and both of you will then need to put some additional money in to cover the sale costs

(Actually that is probably not the worst case scenario - that would be where one party simply refuses to move out or agree to the sale and stops paying the mortgage, the other party has to then take them to court to force a sale or wait for the mortgage comany to repossess, is unable to get their name removed from the mortgage and sees their credit record trashed as a result ...)