Partner wants to pull out after exchange.

WJB2991

Hello, first off I presume this has been discussed and answered before so apologies for that. I have had a quick look through threads but haven’t been able to get an exact answer. I’m after some advice. I was due to be buying a new build property with my partner. We have exchanged contracts but not completed as the property is not due to be finished for a few months. I, myself am putting the 5% deposit on the property and the intention was to draft up a declaration of trust to protect that and thereafter would be a 50:50 split as we were sharing a joint mortgage.

Unfortunately, we have split up and she wants to remove from the process entirely. I want to continue with the purchase on my own. I understand I would need a new mortgage offer and believe myself to be in a strong financial position to accommodate the mortgage on my own.

So there lies my questions:
1) Is it possible after an exchange for my parnter to be removed and for me to continue as a lone buyer?

2) Would it be as simple as contacting the building society, informing them and reapplying? Or adjusting the existing offer mortgage offer?

3) Would my partner dropping out incur any conveyencing charges if I wanted to continue with the purchase by myself as technically I still aim to complete, just minus my partner?

Any advice is appreciated. I recognise my solicitor is the best person to speak to but wanted a heads up on my options before I gave them a call.

Many thanks

davidmcn

I doubt the developers or your solicitor will care much (though your solicitor will need to know and probably need instructions from your ex).

You might want to start from scratch with mortgage options as the change in affordability might affect the best choices for you.

SG27

You need to be careful as the penalties for not completing are huge!

You need to be 100% sure you can get a mortgage alone, if theres any doubt it may be better to complete with your ex partner and sort it out after.

TBagpuss

As SG27 says, penalties for not completing, once you have exchanged, as significant, so you need to plan very carefully.

IF you can get a new mortgage offer in your own right and ant to go ahead, it's likely that you will be able to make the change fairly easily. It may require amendment to document so there are likely to be some additional legal costs and you'll have to decide how much you want to ask your ex to contribute to those.

Do your research and find out whether you can in fact get a new mortgage offer in your sole name, then if you can, talk to your solicitor about the mechanism and cost of switching.

If you can't get a mortgage in your own right then you and your partner will need to look at whether it is going to be better to complete, and then plan to transfer the house to you as soon as you can get your own mortgage, or to fail to complete in which case you will lose the deposit and may be liable for additional costs

Bossypants

When are you due to complete? Rocking the boat between exchange and completion is VERY risky business and could be extremely expensive for you both if it doesn't come off. Presumably she has signed the contract as well? She doesn't have the luxury of just walking away just because you've split.

My suggestion would be to complete as planned. Once that's done, you'll have the time to figure out what to do next, i.e. remortgage in your name only (bearing in mind there may be early exit fees associated with your current mortgage), or if that's not possible reselling.

This is such an unfortunate situation, you have my sympathies!

Comms69

Your partner needs to realise if (s)he fails to complete and you lose out financially. You can pass these costs on to him/her.

SG27

Comms69 wrote: »

Your partner needs to realise if (s)he fails to complete and you lose out financially. You can pass these costs on to him/her.

She will be jointly liable.

Ruthie0889

As hard and as horrible as it is I would recommend completing the purchase. I think you would have more to lose financially if you pulled out now.
Once the purchase has been completed then you can both discuss the best options.

I was in a situation similar to yourself last year and wanted to pull out after exchange due to unforeseen circumstances, however decided the only option was to complete the purchase as a large deposit was already put into the property.

Best of luck whatever you decide.

Comms69

SG27 wrote: »

She will be jointly liable.

Im not sure what you mean? Can you elaborate so there's no confusion.

steampowered

I think you need to get a new mortgage offer based on your sole finances.

If you can do that, then I can't see why there would be a problem completing the purchase in your sole name. You would only be in a mess if your finances are not enough to get a solo mortgage offer.

The seller may want your ex to remain on the contract until completion, but should be happy for her to drop off once it knows you have the funding in place to proceed in your sole name.

As you'll need a new mortgage offer given the change in circumstances you may get a better rate from a different lender. But check your solicitor is on the new lender's panel.

I can't really see why this would increase conveyancing costs but ask your conveyancer.

Wicked_Lady

In the original post it says it is a new build property so this might work in the OP's favour.