Joint Mortgage

theshed

They had been together a number of years but only joint home-owners for a little over a year.
Original mortgage was for £130,000, currently valued at £135,000 so most of any 'profit' would be swallowed up in costs.
Ex wants nothing to do with it, no responsibility, no profit !
Selling may be easier but she has put a lot into the house and does not want to lose it.
Although she can afford the repayments, she does not meet criteria for the full value.

theshed

Does anyone know if it is possible to do a 'Transfer of Assets' without informing the lender ?

Brock_and_Roll

theshed wrote: »

Does anyone know if it is possible to do a 'Transfer of Assets' without informing the lender ?

Most definitely not so you can rule that plan out!

theshed

Not a plan. A question !

getmore4less

theshed wrote: »

Does anyone know if it is possible to do a 'Transfer of Assets' without informing the lender ?

Beneficial interest can be changed without the lender knowing.

The lender has protection anyway as the beneficial interest is after any secured debt has been paid.

theshed

That sounds helpful.
Basically ex-partner wants nothing to do with mortgage, no payments to be made, no possible profit paid.
So, if a Solicitor draws up such an agreement that would be legal ?
When finances allow we hope to take a new mortgage, meanwhile we can afford to make payments but would not meet current lender criteria.
Thanks

getmore4less

That can be done which documents the beneficial interests going forward.

It is not without secondary issues for both sides as the mortgage liability remains joint.

MEM62

theshed wrote: »

My query/conundrum, call it what you will was to ask how a willing lender can, in effect punish the person who is ready and willing to pay back their agreed amount whilst the defaulter walks away ?

You are really are not getting the 'joint and severally liable' thing. Basically, is it is exactly the scenario you have described above. Only it is not 'punishment'. It is the liability that each of those individuals accepted when they took on the mortgage and it would have been made clear to them. This is not two loans, there is no 50%. It is one loan for which they are both fully liable.

For your daughter to keep the house and protect it from any future claim by her ex she needs to buy him out. To do that she will have to come up with whatever settlement he may be due to buy out his 'interest' in the house (If he wants nothing all well and good but you need this legally documented!) and also be able to take on the full mortgage herself. In many cases this is not achievable as one partner will not have the financial resources to do so. However, you daughter is lucky in that you are willing to help. You need to see a mortgage broker first of all to see what you options are finance-wise. If you can make that part of it work the you will also need to see a solicitor to ensure that the transfer is legally binding.

The alternative is that your daughter continues to live there and pay the mortgage, perhaps with your assistance, and live with the risk that her ex may come chasing something one day. She will certainly have issues if he ever declared bankrupt!

Jane.1963

I think you need to take legal advise on this or go to citizens advice, I’m sure they will point you in the right direction.

theshed

Yes, we will instruct a Solicitor, just as it is going to be expensive either way. It will be better and less expensive if we have an idea of what can be done before we approach one.