Buyer has name on another mortgage

smifferson

Hi, very stressed out with our house move.

After 3 months our buyer has told our estate agent that he requires his ex partners property to sell as his name is on the land registry and his name is still on the mortgage. This wasn't disclosed before this point and the ex's property isn't part of our chain. 

The ex's property sale has been delayed due to moving to a new build and it not being ready. 

How easy is it to remove a name from a  mortgage? The property would only be in the ex's name for a short period of time due to it being sold. Would a mortahhe lender quible over aa singke persons affordability for a month or 2 if its being sold?

He also needs to remove his name from the land registry. 
We're worried our seller will pull out with the extended period if time.

Do we think it's fair for our buyer to just wait and not try and remove his names from the property? If we knew these facts from the start we would have thought twice about accepting his offer.

Any advice/ experiences would be greatly appreciated!

grumbler

smifferson said:

 Would a mortahhe lender quible over aa singke persons affordability for a month or 2 if its being sold?

     Why not? It can take much longer than 2 months to sell or this person can change their mind and decide not to sell at all. Selling in one month is absolutly unrealistic IMHO.

jlfrs01

I don't think your buyer being on the Land Registry for this ex-Partner's property has any bearing on whether he can proceed with the purchase of your property. It may even not matter if his name is still on the Mortgage either because presumably he disclosed this to his lender before being offered a mortgage to purchase your property? If he needs no loan in order to proceed, or has been granted a new loan to purchase your property then no need to put everything on hold. What could be a consideration is if your buyer needs the property sold in order to release equity to put towards the purchase. If that is the case then you really need some certainty for a completion date on the new build his ex-Partner is buying. 
When I've bought new homes in the past, the builder has always given an approximate date for completion from the get-go so your buyer should know that from his ex. Even so, weather and other matters can push back a new build so you can't hang your hat on whatever date you are given. Once you know that you're in a position to act accordingly, either the rest of the chain is willing to wait (and they may not due to mortgage offers expiring or are in rented, etc), or you need a new buyer. Pretty naughty of your buyer to drop that bombshell 3 months in though.

YoungBlueEyes

smifferson said:

Hi, very stressed out with our house move.

After 3 months our buyer has told our estate agent that he requires his ex partners property to sell as his name is on the land registry and his name is still on the mortgage. This wasn't disclosed before this point and the ex's property isn't part of our chain. 

The ex's property sale has been delayed due to moving to a new build and it not being ready. 

How easy is it to remove a name from a  mortgage? The property would only be in the ex's name for a short period of time due to it being sold. Would a mortahhe lender quible over aa singke persons affordability for a month or 2 if its being sold?

He also needs to remove his name from the land registry. 
We're worried our seller will pull out with the extended period if time.

Do we think it's fair for our buyer to just wait and not try and remove his names from the property? If we knew these facts from the start we would have thought twice about accepting his offer.

Any advice/ experiences would be greatly appreciated!

My bolding. If he needs the ex's property to be sold it suggests problems to me. Wouldn't stand up to the affordability for 2 mortgages? 2 properties means extra tax. 

The ex's property is now kind of part of your chain if he needs the money out of it to buy yours.

Could the ex afford the mortgage by herself?

MultiFuelBurner

smifferson said:

Hi, very stressed out with our house move.

After 3 months our buyer has told our estate agent that he requires his ex partners property to sell as his name is on the land registry and his name is still on the mortgage. This wasn't disclosed before this point and the ex's property isn't part of our chain. 

The ex's property sale has been delayed due to moving to a new build and it not being ready. 

How easy is it to remove a name from a  mortgage? The property would only be in the ex's name for a short period of time due to it being sold. Would a mortahhe lender quible over aa singke persons affordability for a month or 2 if its being sold?

He also needs to remove his name from the land registry. 
We're worried our seller will pull out with the extended period if time.

Do we think it's fair for our buyer to just wait and not try and remove his names from the property? If we knew these facts from the start we would have thought twice about accepting his offer.

Any advice/ experiences would be greatly appreciated!

It's time.to get your property back on the market and if this buyer sorts themself out before you have another qualified offer then so be it.

housebuyer143

Remarket. The ex house is now part of your chain as you can't just remove someone from the title deeds or the mortgage, you need to sell the house or transfer ownership to the partner and then the partner needs to remortgage. She isn't going to do this if she is moving in 2 months. It's also going to take longer than 2 months to sort this.

You either accept this house is now in your chain or remarket.

london21

Might have to relist, there are some time wasters in the market with uncertain environment.

smifferson

Thanks everyone for your opinions, all of the chains solicitors are ready for exchange, it's just this holding it up.

For further info, our buyer isn't using any funds from his ex's sale. He is just held back with his name being on the mortgage and the land registry. 

We're hoping his application was submitted with this information of the existing mortgage, nothing would surprise me though.

I think he was expecting the exs sale and purchase to go through sooner before it was an issue but her new build got delayed. He has a child with the ex so guessing his name stayed on the Mortgage to make things easier for her and his child.

Do you think it's unreasonable for me to ask him to remove his name from her mortgage even if it causes issues for her. Why he didn't get his affairs sorted before all of this is beyond me.

propertyrental

smifferson said:

For further info, our buyer isn't using any funds from his ex's sale. He is just held back with his name being on the mortgage and the land registry. 
Please explain why this impacts on his ability to purchase your property/ What is 'holding him back'? (but see below)

........
Do you think it's unreasonable for me to ask him to remove his name from her mortgage even if it causes issues for her. Why he didn't get his affairs sorted before all of this is beyond me.
He can't just 'remove his name', unless the mortgage lender agrees, which is unlikely. Another option would be for him + ex to pay off the mortgage, using funds the ex obtained by taking out a new mortgage in sole name. Again, unlikely for a 2 month period.

Plus he'd still be a joint owner unless the ownership was aso transferred to ex's sole name at the same time....

The problem might be that in buying your property he'd end up owning two properties, which makes him liable for additional SDLT

smifferson

Yes I think that is his problem, he would owe a lot more on stamp duty. I think as a minimum he should attempt to remove his name from the mortagge and the land registry to show some willing. It might be that his ex sells within that time but at least we know there's an end to the process. If we're just waiting for her house to be built who knows how much longer it will take.

smifferson

propertyrental said:

smifferson said:

For further info, our buyer isn't using any funds from his ex's sale. He is just held back with his name being on the mortgage and the land registry. 
Please explain why this impacts on his ability to purchase your property/ What is 'holding him back'?


I presume he needs the other mortgage to be paid off to be able to borrow another mortagge on his own. Also with SDLT he would be paying the 3% extra as in theory it's his second property. I might just have to put pressure and threaten to put the home back on the market.