Process for turning joint mortgage into solo mortgage with no transfer of equity?

Oakeshott

I currently have a joint mortgage with almost no equity in the property, as it was recently purchased based on a very high LTV. 

If my partner and I split up, how easy is it to transfer the mortgage into my name only, if there is no transfer of equity (she’s happy to just walk away from the mortgage with no payment)? 

Is it a simple thing to achieve, or is it quite difficult/expensive? This is with Halifax and my income alone is sufficient to cover the mortgage. 

user1977

If the LTV remains much the same then I don't see why that would be different from the original application? Or are you saying there's now even less equity than there was when you bought? 

JMA74

The lender will need to authorise any change to the deeds.  You will therefore need to pass the affordability assessment as it stands now on your own to have them agree to it.   Your income may be enough on a monthly basic but they will work on a different calculation.   

Stick your numbers in here https://www.halifax-intermediaries.co.uk/tools-calculators/mortgage-affordability-calculator.html

If you get a figure that covers your mortgage balance then shouldnt be any issues


The process starts with you contacting the lender and arranging a Transfer of Mortgaged Property appointment (thats what halifax call it). One they approve you then it moves across to the solicitors to amend the deeds

Oakeshott

user1977 said:

If the LTV remains much the same then I don't see why that would be different from the original application? Or are you saying there's now even less equity than there was when you bought? 

No. We have probably slightly more than when we bought it but overall it’s not a lot. 

Oakeshott

JMA74 said:

The lender will need to authorise any change to the deeds.  You will therefore need to pass the affordability assessment as it stands now on your own to have them agree to it.   Your income may be enough on a monthly basic but they will work on a different calculation.   

Stick your numbers in here https://www.halifax-intermediaries.co.uk/tools-calculators/mortgage-affordability-calculator.html

If you get a figure that covers your mortgage balance then shouldnt be any issues


The process starts with you contacting the lender and arranging a Transfer of Mortgaged Property appointment (thats what halifax call it). One they approve you then it moves across to the solicitors to amend the deeds

That doesn’t sound too bad. What  would be the overall cost me of completing this process?

JMA74

Solicitors will charge a couple of hundred.  I think it was £160 to the bank as admin fee but i left them about 6 years ago so might me more or less now 

ACG

A transfer of equity is the legal process of altering the deeds with the land registry from joint names to sole name (in your situation). A transfer of equity is needed. 

You will need to apply to halifax to transfer the mortgage to your sole name - which will involve a full underwriter. If accepted, a transfer of equity will then take place. 

kingstreet

ACG said:

A transfer of equity is the legal process of altering the deeds with the land registry from joint names to sole name (in your situation). A transfer of equity is needed. 

You will need to apply to halifax to transfer the mortgage to your sole name - which will involve a full underwriter. If accepted, a transfer of equity will then take place. 

This. A TOE doesn't always mean money changes hands. However, watch out for potential SDLT liability based on the amount of mortgage being transferred from joint to sole.

Oakeshott

kingstreet said:

ACG said:

A transfer of equity is the legal process of altering the deeds with the land registry from joint names to sole name (in your situation). A transfer of equity is needed. 

You will need to apply to halifax to transfer the mortgage to your sole name - which will involve a full underwriter. If accepted, a transfer of equity will then take place. 

This. A TOE doesn't always mean money changes hands. However, watch out for potential SDLT liability based on the amount of mortgage being transferred from joint to sole.

That's mental! So I could become liable to pay Stamp Duty by doing a TOE?

ader42

Yes:

“ If joint owners are unmarried and not in a civil partnership when they transfer an interest in land or property from one joint owner to another then you may have to pay Stamp Duty Land Tax.”

https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#if-you-marry-enter-into-a-civil-partnership-or-set-up-home-together