Registered Interest - Complications

Ethereal_Gaz

Q: Can an ex's registered interest in a property halt me re-mortgaging?

Further info:

I have a flat that is mortgaged in my name only. My ex has a registered interest and we are selling the property as part of our divorce and splitting the equity.

Due to the flat having a short lease it's proving difficult to sell. I'm attempting to re-mortgage and increase the mortgage to extend the lease.

My ex has given permission to do this but the mortgage advisor thinks her registered interest could cause problems.

Ethereal_Gaz

So basically, does anyone know how mortgage providers deal with properties with a registered interest. Does it affect things at all?

silvercar

In the worst case, your ex would have to sign that she has no objection to the mortgage extension.

In the same way that secured loan holders agree a deed of postponement to allow a remortgage of the first mortgage. As she is in agreement there shouldn't be a major issue provided you are using the money to extend the lease.

Ethereal_Gaz

She has sent me a letter stating this and is willing to sign something for the bank.

I'm looking for details of the process. At what stage will this be halted, do I need to state her interest up front or wait for the bank to request the signature?

Ethereal_Gaz

Update: We have an agreement as part of the divorce that the house needs to be sold and equity split.
I've read that the divorce takes precedent over a registered interest.

Can anyone confirm this?

csgohan4

What has your solicitor said?

Ethereal_Gaz

Haven't spoken to the solicitor recently as the divorce went through over a year ago. (the flat has been empty since).
Also presumed this would be more of a mortgage adviser question but my mortgage adviser couldn't help.

[Deleted User]

Mortgage companies wont generally see a copy of your title documents. They will see if the mortgage account is held in joint names or sole names and then question if the new application doesnt match.

The solicitor/conveyancer you use to do the remortgage will be the person who sorts out any issues with title and then reports back to the lender so they know whats going on. At that point eh mortgage offer could be withdrawn if the lender isnt happy with it.

To be perfectly blunt if you have a mortgage advisor and they couldnt help to such a degree that you are seeking random interent strangers advice....get a new mortgage advisor. One who can help and even if doesnt know the answer to something goes to find out and actually helps you with your question.

The number of lenders happy with a legal interest registered against the property from a non-borrower is smaller than the ones you are not happy with it.
Goes back to my previous point. Get a better, more helpful mortgage advisor and they will tell you what your options are

Ethereal_Gaz

Thanks for the advice. I will go back and ask his advice then consider going elsewhere if he can't help.