Removing name from deeds - please help

Clipaldinhio

Hi. Can someone please help me.

I am married but seperated from my wife 7 months ago and moved out of out jointly owned home (joint tenancy, mortgage in both names).

My wife has stayed in the home and has agreed a figure to buy me out of the house. She has obtained a re-mortgage with a new mortgage company in just her name. It's all amicable and neither of us wants to get solicitors involved (the marriage was short and there are no children involved)

We have now reached the point where for her new mortgage to go through she needs me to be removed from the deeds of the house.

I thought this was relatively straight forward but am getting lots of conflicting advice. Generally people say use a solicitor on websites I have read to do a "transfer of equity". I have been quoted £600 for this.

Then I read elsewhere that you can just file a TR1 with the land registry and that will do it. Rang the land registry helpline and a confused adviser said it's difficult and I should get a solictor.

Can't I just do this myself and save all that money ? Or is it really so complicated that this is not an option.

Please help....really frustrated. !

Thanks

robwend

bump this thread. i need that doing also

Johnhowell

Clipaldinhio wrote: »

Hi. Can someone please help me.

I am married but seperated from my wife 7 months ago and moved out of out jointly owned home (joint tenancy, mortgage in both names).

My wife has stayed in the home and has agreed a figure to buy me out of the house. She has obtained a re-mortgage with a new mortgage company in just her name. It's all amicable and neither of us wants to get solicitors involved (the marriage was short and there are no children involved)

We have now reached the point where for her new mortgage to go through she needs me to be removed from the deeds of the house.

I thought this was relatively straight forward but am getting lots of conflicting advice. Generally people say use a solicitor on websites I have read to do a "transfer of equity". I have been quoted £600 for this.

Then I read elsewhere that you can just file a TR1 with the land registry and that will do it. Rang the land registry helpline and a confused adviser said it's difficult and I should get a solictor.

Can't I just do this myself and save all that money ? Or is it really so complicated that this is not an option.

Please help....really frustrated. !

Thanks

Be aware that stamp duty may be due on this transfer - it can be a very complex issue. My position is that I wish to buy into my partners property and be named on the deeds - the opposite to you. My consideration would be to cover the mortgage and pay it off. However, for stamp duty purposes, half of the mortgage is added to the consideration paid. The extra half takes the amount over the £125k stamp duty limit so 1% would be due.

To be completely covered employ a solicitor/conveyancer. £600 is a small price to pay compared to the costs if it goes wrong.

Good luck,
John

Richard_Webster

Your wife's mortgage lender will insist that a solicitor handles it because if they have offered a mortgage loan to her they will only let the money be used if they are sure that the property only belongs to her. You presumably would not want to hand over to her a signed TR1 saying you have received £X for the half share if you haven't actually had the money

She will need a solicitor to act for her and her mortgage lender. That solicitor would write to you with the TR1 a letter containing a "heath warning" that you should take your independent legal advice because of the importance of the document. A lot of people in your position don't bother as long as the solicitor undertakes not to use the document once signed by you to complete the transaction until he has sent you the agreed amount.

In that case provided you get an undertaking to that effect from the solicitor you will be protected by his professional undertaking. These undertakings are very important and breach of them is a disciplinary offence and can lead to a solicitor being struck off!

CHR15

I'm in a similar position after separation.

I am receiving nothing though, just signing the lot over, in return she has no future claim to my earnings (15 years mortgage payments down the swanny... great! /rant)

By the sounds of it, it should only cost my Ex £600 for the TR1 ( i wonder who will end up paying that??)

Is there any substance in the Stamp Duty thing????

Johnhowell

CHR15 wrote: »

Is there any substance in the Stamp Duty thing????

I spoke to the HMRC Stamp Duty enquiry telephone number with the numbers of my situation. The debt on the property (mortgage) is proportionally added to the consideration paid:

Example 1:
Property value £200k
mortgage outstanding = £80k
50:50 transfer: therefore £100k + £80k/2 = £140k. Therefore over the £125k Stamp Duty threshold thus 1% duty due.

Example 2:
Property value £400k
mortgage outstanding = £80k
25:75 transfer: therefore £100k + £80k/4 = £120k. Therefore under the £125k Stamp Duty threshold thus zero duty due.

John

CHR15

Thanks for that, I still cant quite grasp the formulae

My cicumstance is this:

House value £130k
Outstanding mortgage £60k

My ex has everything, I just walk away with nothing
So there is nothing to split
Does that mean she will have to pay stamp duty??

From what I can see it is 100%: therefore £130k + £60k = £190k (well above stamp duty threshold)

thanks

Richard_Webster

Example 1:
Property value £200k
mortgage outstanding = £80k
50:50 transfer: therefore £100k + £80k/2 = £140k. Therefore over the £125k Stamp Duty threshold thus 1% duty due.

This example doesn't look right. If there is an £80K outstanding mortgage the person buying out a half share would pay £60K ((£200K-£80K)/2) for half share so £60K + £80/2 = £100K therefore below SDLT threshold.

Johnhowell

Richard_Webster wrote: »

This example doesn't look right. If there is an £80K outstanding mortgage the person buying out a half share would pay £60K ((£200K-£80K)/2) for half share so £60K + £80/2 = £100K therefore below SDLT threshold.

Richard,

This example was the actual one HMRC SDLT helpline quoted to me...

She did not ask me what the value of the property was, so we presume she assumed 50:50 transfer. She stated that half the debt was added to the consideration before determining the tax liability. No mention was made of deducting the debt from the value before transfer.

Example 2 is my actually situation. £80k mortgage on £400k, with me paying £100k into the property (25% share) to pay off this mortgage.

Regards,
John

Johnhowell

CHR15 wrote: »

Thanks for that, I still cant quite grasp the formulae

My cicumstance is this:

House value £130k
Outstanding mortgage £60k

My ex has everything, I just walk away with nothing
So there is nothing to split
Does that mean she will have to pay stamp duty??

From what I can see it is 100%: therefore £130k + £60k = £190k (well above stamp duty threshold)

thanks

Chris,
Probably because no consideration (cash) was handed over no SD is due.

But telephone the SDLT helpline to confirm the details and see whether she should pay SD!

John

SquatNow

I think the woman on the phone was talking crap.

Mathematically it simply wouldn't make sense.

It would have to be (value - outstanding debt)/2... it's a very basic mathematical formula!

You're selling/transfering the equity and the other person is taking over responsibility for the remaining mortgage. Equity=Value-Debt

Consider if you had a 1 month old 100% mortgage... (200k value + 200k debt) /2 would mean you would have to pay the full value of the property!