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Transfer of BTL property to spouse in divorce
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Posts: 10 Forumite
I'm currently going through divorce and as part of the financial settlement, I will be getting sole ownership of a BTL property which is currently a marital asset.
I realise that there will be CGT implication, but my main concerns are around actually getting the transfer to happen. It complicated by the following:
- Although the BTL is a martial asset, it is soley in my ex-wife's name.
- The property is mortgaged and only my ex-wife's name is on the mortgage.
- The mortgage company has refused to add me to the mortgage unless I am named on the deeds, and the conveyancer has said its not possible to add me to the deeds unless the mortgage company agrees (they've said they won't without any reason why).
As you can see I'm stuck in a bit of a catch 22 and seem unable to get either added to the mortgage or deeds, or do a clean transfer of equity and mortgage.
Any help would be appreciated. Would also appreciate any advice on my ex-wife taking out a new 2-year fix deal with the existing mortgage company (current deal is about to expire) in the meantime, or whether it will be easier to do a transfer if we're not locked into a mortgage deal.
Thanks!
I realise that there will be CGT implication, but my main concerns are around actually getting the transfer to happen. It complicated by the following:
- Although the BTL is a martial asset, it is soley in my ex-wife's name.
- The property is mortgaged and only my ex-wife's name is on the mortgage.
- The mortgage company has refused to add me to the mortgage unless I am named on the deeds, and the conveyancer has said its not possible to add me to the deeds unless the mortgage company agrees (they've said they won't without any reason why).
As you can see I'm stuck in a bit of a catch 22 and seem unable to get either added to the mortgage or deeds, or do a clean transfer of equity and mortgage.
Any help would be appreciated. Would also appreciate any advice on my ex-wife taking out a new 2-year fix deal with the existing mortgage company (current deal is about to expire) in the meantime, or whether it will be easier to do a transfer if we're not locked into a mortgage deal.
Thanks!
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Comments
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I'm currently going through divorce and as part of the financial settlement, I will be getting sole ownership of a BTL property which is currently a marital asset.
I realise that there will be CGT implication, but my main concerns are around actually getting the transfer to happen. It complicated by the following:
- Although the BTL is a martial asset, it is soley in my ex-wife's name.
- The property is mortgaged and only my ex-wife's name is on the mortgage.
- The mortgage company has refused to add me to the mortgage unless I am named on the deeds, and the conveyancer has said its not possible to add me to the deeds unless the mortgage company agrees (they've said they won't without any reason why).
As you can see I'm stuck in a bit of a catch 22 and seem unable to get either added to the mortgage or deeds, or do a clean transfer of equity and mortgage.
Any help would be appreciated. Would also appreciate any advice on my ex-wife taking out a new 2-year fix deal with the existing mortgage company (current deal is about to expire) in the meantime, or whether it will be easier to do a transfer if we're not locked into a mortgage deal.
Thanks!
Why do you have to get added to your ex-wife's mortgage? Why can't you apply for a BTL mortgage in your own name using the equity as your deposit?
There will be CGT implications but not for you.0 -
Why do you have to get added to your ex-wife's mortgage? Why can't you apply for a BTL mortgage in your own name using the equity as your deposit?
There will be CGT implications but not for you.
I was trying to do it that way as I thought it would be easiest way to get my name added to the deeds. I can't do the TR1 form as the mortgage company won't agree to it as I don't appear on the mortage.
Can I apply for my own BTL mortgage if my name isn't on the deeds?0 -
I was trying to do it that way as I thought it would be easiest way to get my name added to the deeds. I can't do the TR1 form as the mortgage company won't agree to it as I don't appear on the mortage.
Can I apply for my own BTL mortgage if my name isn't on the deeds?
How else to people normally buy property? If I was buying the BTL I wouldn't expect my name to be added to the deeds before getting my own mortgage.0 -
If the divorce settlement says nothing about any mortgage then you should get the property, without any mortgage. You are having the property transferred, not any debt. How was the divorce settlement documented? - through a court?
How your ex copes with the debt is her problem.
That's going to improve relationships...
See a family law solicitor.
NB No offence but surely only a tw*t ASKS to take on someone else's debt.0 -
How else to people normally buy property? If I was buying the BTL I wouldn't expect my name to be added to the deeds before getting my own mortgage.
But wouldn't that then be treated as a sale of the property, rather than a transfer? Would it have implications for CGT and stamp duty?0 -
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Then go see an independant mortgage broker.Just the equity in the property.
Apply for a mortgage in your name.
Assuming it is approved, your solicitor will arrange for
* the new lender to release the mortgage
* the old lender to get funds to pay off the existing mortgage and
* the property to be transferred into your name and
* the new mortgage to be registered as a Charge on the Title
Beause of the mortgage(s), you cannot DIY this.0 -
Do you qualify for a mortgage on the BTL?0
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