removing name from mortgage to buy new house (not separating)

aoyama131

Hi
We are in the process of buying a new house. The new mortgage will be in my husbands name only, therefore my name will be being removed from the mortgage. We arent splitting up and have no plans to.

But considering the worst case senarios:
A) husband dies ... I'd get the house in will... and then prob sell it and get a small house I can afford..sounds fairly simple.
we split up...if this happened I would not own any of the house we would be living in, which is potentially problematic! Although I would presumbably be a financial settlement as part of divorce (we have kids) that would take into account the house so maybe not?

Is there anything you can do to mitigate the potential risk of (B) splitting up and not having a right to the property? Presumably asking for a letter on file stating that in the event of a divorce or what ever I would have some rights to property would be completely irrelevant as it wouldn't be a legal document. The mortgage and deed are what matters in law?



Has anyone done this before?
Many thanks

Cscott139

Why aren't you going on the mortgage?

kingstreet

aoyama131 wrote: »

... therefore my name will be being removed from the mortgage.

That is not the case.

The current joint mortgage will end, repaid from the sale proceeds and the new mortgage will be in his sole name so you are not being removed.

The issue here is going to be the source of the "deposit." This is coming from a jointly owned asset which means you are contributing. Many lenders will not accept you residing in the property in such circumstances, so correct lender selection is very important.

You will be gifting your contribution so the lender you choose has to accept that and the residence issue.

aoyama131

The mortgage provider has offered the mortgage his name only, I dont actually work so essentially I am another dependant. I have been asked to sign a form that effectivly gifts him my share of our old house so he can buy this one. I realise its not ideal.

I am happy for the house to be in his name, I just wondered if there was a document we could add to the file somehow that would offer some protection if it all went horribly wrong some where down the line.
Perhaps not?