Transfer of equity following a divorce - advice please

Tom99

[FONT=Verdana, sans-serif]Now you hold the property as tenants in common you can have a deed of trust to specify the 0%/100% equitable ownership. This is a formal transfer and should satisfy your divorce consent order.[/FONT]
[FONT=Verdana, sans-serif]You can't register the deeds of trust as such with the Land Reg Title but their existence can be protected on the register by way of a restriction.[/FONT]

enthusiasticsaver

Dragonrider wrote: »

Originally I talked to a financial advisor who said we could change to tenants in common (which we have now done), and then we could specify that one of us had 100% and the other had 0%.

However, my solicitor is now saying that I need to do a formal transfer of equity in order to comply with the consent order.

I dont know who to believe! And just want to make sure I don't rock the boat with NatWest.

Can anyone point me towards some definitive guidance? The .gov.uk website is confusing the heck out of me.

Thanks again,
Dragonrider

I don't think the financial advisor is correct in advising you change to tenants in common with you having 100% and your OH having 0% as the property is mortgaged and not owned 100% anyway.

Nat West will insist on your husband remaining on the deeds if he is to remain on the mortgage which presumably he will have to if you are unable to service it entirely on your own salary. Also although your husband will have no equity (according to the consent order) he is liable for half the mortgage which is approx. 50% of the property. Neither of you own it 100% as it is mortgaged. What I am not sure though is whether Nat West will be worried if you do a transfer of equity as I don't think this will affect the mortgage as such but the solicitor should be able to advise on this.

It all sounds incredibly complicated but ideally you either need to sell and buy a cheaper property with a mortgage you can afford or you need to overpay it until it gets to a level that Nat West would be happy to remove your husbands name from the mortgage. This is a separate issue to the transfer of equity.

enthusiasticsaver

Actually having read up a bit further on it to transfer the equity it looks like you need to complete the TR1 form and will need the mortgage lenders consent as if your husband is removed from the property he effectively will have to come off the mortgage too. Nat West are unlikely to give that unless your total income indicates you can afford the mortgage so you seem to be at a bit of an impasse. You will need to speak to them anyway to see what the suggestion is.

enthusiasticsaver

Mortgaged land: similarly, if the land is mortgaged you normally need to get the consent of the lender if you want to transfer it subject to an existing mortgage.

That is from the gov.uk site.