Transfer of BTL property to spouse in divorce

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G_M wrote: »

Then go see an independant mortgage broker.

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.

Would this be treated as a "sale" of the property or a transfer of a marital asset between spouses (we're still married as of now?

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sheramber wrote: »

Do you qualify for a mortgage on the BTL?

Yes I would do.

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Thrugelmir wrote: »

Then your options are to remortgage the property into your own name or sell it. Your ex will no doubt wish herself removed totally.

My ex is being very reasonable about this and the divorce is very amicable. We were thinking about taking the following steps to get this transfer to happen. Is this possible:


1. Remortgage BTL property in joint names.
2. The do a TR1 to have me added to the deeds
3. Remove ex from mortgage
4. Do TR1 (or equivalent) to remove ex from deeds.


Would this be possible and the most cost effective way to do the transfer?

Pixie5740

Interact wrote: »

My ex is being very reasonable about this and the divorce is very amicable. We were thinking about taking the following steps to get this transfer to happen. Is this possible:


1. Remortgage BTL property in joint names.
2. The do a TR1 to have me added to the deeds
3. Remove ex from mortgage
4. Do TR1 (or equivalent) to remove ex from deeds.


Would this be possible and the most cost effective way to do the transfer?

No, because you're adding in unnecessary steps.

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Pixie5740 wrote: »

No, because you're adding in unnecessary steps.

Can you explain why? I've already been quoted ~£800 by a solicitor to do the transfer and even then, would still require my name to be on the mortgage (which is currently isn't). What would be a better way to do this?

Pixie5740

Interact wrote: »

Can you explain why? I've already been quoted ~£800 by a solicitor to do the transfer and even then, would still require my name to be on the mortgage (which is currently isn't). What would be a better way to do this?

I already have explained how you should go about it.

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Pixie5740 wrote: »

I already have explained how you should go about it.

I think you suggested that I should just take out a mortgage in my own name using the equity in the propoerty as the deposit.


But wouldn't that be treated as a sale rather than a transfer and hence attract CGT and stamp duty?


Also, how can I use the equity in the property as my deposit if the property doesn't belong to me yet?

silvercar

But wouldn't that be treated as a sale rather than a transfer and hence attract CGT and stamp duty?

It would count as a disposal. The definition of a disposal includes not only the sale of an asset but also a disposal by way of gift or a transfer under a divorce settlement.

Also, how can I use the equity in the property as my deposit if the property doesn't belong to me yet?

Under the divorce settlement you are taking on the property, you are receiving the equity and taking a mortgage for the rest.

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One other question about this. The divorce might not be finalised for several more months, even up to a year and I'm currently paying the mortgage on the BTL which is now on the SVR.


My question is, am I able to remortgage in the mean time, under my name even though my name isn't on the deeds, and then deal with the transfer once the divorce is finalised?