Transfer of mortgage/property upon separation

stranex

Hi all,

So myself and my wife have decided to separate and are quite amicable and haver agreed in principle a way to split our assets which includes me transferring my share of the property to her. This is our preferred option over a sale because of continuity for out daughters/schools/saving on new property SDLT etc and so whilst I appreciate this may be difficult to achieve, I'd like to know if it's possible?....

We have a joint mortgage on the property which she cannot afford to take on herself due her significantly lower salary. However, I have agreed to pay her a monthly "maintenance" which I believe (?) some lenders will take onto consideration for affordability purposes after 3 months or a consent order has be signed. This should then allow her to take on the mortgage? Are there any further issues regarding transferring the property to her name? A colleague has said the mortgage company may allow the mortgage to change so I'm not named on it, but be reluctant to remove me from the deeds/charge??

Who would be best to speak to about this proposal? I'm loath to take it to a family lawyer as I'm guessing they'll just forward onto a specialist. A conveyancer? Financial advisor?

ANY advice/tips very gratefully received as it's holding me make making my next move until I have some idea as to whether our plan is achievable

MTIA

kingstreet

A lender won't give a stuff if you are named in the ownership (or not) but won't release you from liability for the mortgage if your ex cannot clearly demonstrate her ability to afford it alone.

Usually, maintenance has to be CSA or Court-enforced, or if voluntary to have been paid (and can be evidenced) at the agreed level for at least six months, in the case of just one or two lenders.

A colleague has said the mortgage company may allow the mortgage to change so I'm not named on it, but be reluctant to remove me from the deeds/charge??

No. The other way round. They won't release you from the mortgage, which is the charge, the deed which ties the loan to the property but they won't care if you are no longer named in the deeds/ownership.

A mortgage broker will be able to reiterate exactly what I've said here, absolutely free. However, you need to be getting proper paid-for legal advice and mortgage advice at the same time.

stranex

Thank you, helps clear it up.

Are you saying only one or two lenders will allow evidenced maintenance payments as opposed a court order? My "problem" is knowing whether she'll be likely to obtain the required mortgage after 6 months. If not, then seems a court order is the only way to better improve the chances but in order to get that I have to commit legally to the payments even before I know if that will result in her being able to obtain the required mortgage? Chicken and egg.....can it be avoided? Is there any way to know in adnavce what lenders will likely give her IF I stipulated in a court order what my monthly payments would be?

kingstreet

The bulk of the lending market requires a court order or CSA supervision before they will take maintenance as an income stream.

A handful will accept a voluntary agreement as long as it has been paid at the same level for a set number of months of their choosing.

Enter the data in a lender's affordability calculator with and without the maintenance and see the difference, or appoint an independent broker to do it for you so you'll know the right lender's calculator will be used.