Removing Partner from the deeds

swanseajack91

Recently split from my wife, I have stayed in the house and continue to pay the mortgage and bills, unfortunately the bank is unable to offer me the amount required to remortgage in my own name.
If I am able to pay her half the equity and get an agreement signed to move the house solely in my name deeds wise would she still have a claim on the house if she was on the mortgage? this was suggested by her obviously I need to get in contact with a solicitor just wondering if anyone has done something similar or if its possible? 

maisie_cat

There is such a mortgage (joint borrower sole proprietor) but they are more usually between parents/children.
She would be jointly and severally liable and having this mortgage will prevent her having another mortgage unless she has a high income so she'll be stuck in rented property.

DE_612183

If you are able to pay her half the equity - can you not use that money instead to reduce the borrowing required for the mortgage?

Have you got some "figures" even estimates in mind - might be easier to work out.

PS - "Bluebirds!"

loubel

You will need the lender's consent to remove her from the Title and they are unlikely to agree to this if you aren't eligible for a mortgage on your own.

If she wants her money now then you can set up a Declaration of Trust that states that you have paid out her share in the equity and that she no longer has any claim (despite still being a co-owner on paper) and that you take on 100% of liability under the mortgage.

This isn't really in her interests long-term though, as that agreement is only between you two and so the lender could (and would) still take action against her if you stop paying or otherwise breach the mortgage terms. She will also struggle to get a mortgage on another property while she remains liable for your (joint) mortgage.

She would definitely need to take legal advice before agreeing and consider adding an 'out' strategy where she can force you to sell if you can't remortgage within a specified length of time.

swanseajack91

maisie_cat said:

There is such a mortgage (joint borrower sole proprietor) but they are more usually between parents/children.
She would be jointly and severally liable and having this mortgage will prevent her having another mortgage unless she has a high income so she'll be stuck in rented property.

She is aware of this and is not looking to buy another house for at least a few years, currently living at her parents House I guess that's her decision. 

DE_612183 said:

If you are able to pay her half the equity - can you not use that money instead to reduce the borrowing required for the mortgage?

Have you got some "figures" even estimates in mind - might be easier to work out.

PS - "Bluebirds!"

I could do that but she wants her money out of the house 171k left on mortgage 250k value on the house I can only lend up to 145k in my sole name.

haha not a football fan luckily!

loubel said:

You will need the lender's consent to remove her from the Title and they are unlikely to agree to this if you aren't eligible for a mortgage on your own.

If she wants her money now then you can set up a Declaration of Trust that states that you have paid out her share in the equity and that she no longer has any claim (despite still being a co-owner on paper) and that you take on 100% of liability under the mortgage.

This isn't really in her interests long-term though, as that agreement is only between you two and so the lender could (and would) still take action against her if you stop paying or otherwise breach the mortgage terms. She will also struggle to get a mortgage on another property while she remains liable for your (joint) mortgage.

She would definitely need to take legal advice before agreeing and consider adding an 'out' strategy where she can force you to sell if you can't remortgage within a specified length of time.

That was what I was wondering if something like that could be done, I understand its not in her interest I guess its a decision she needs to make if its a possibility, I think I need to speak to a solicitor and see if the details can be hashed out. was wondering if anyone has done similar 

ognum

I don't know where you live but have you considered selling, splitting the equity and then buying so etching you can afford with your income.  That way it is done and finished.

propertyrental

One of the things I've learned from this site is that divorce/separation is best done cleanly.

Maintaining financial links, owing money, sharing property ownership etc etc leads to issues down the line.

Make a clean break and start your (separate) lives again. If that means selling and downsizing, so be it.

Bookworm105

propertyrental said:

Make a clean break and start your (separate) lives again. If that means selling and downsizing, so be it.

100% agree

ian1246

I also support the "sell up and clean break" advice. I say this as someone who's wife left on the 06th July 2023 - in that time we've done mediation (3 sessions), agreed the financial consent order, sold our beautiful family home & had the financial order approved by the court. Just waiting on the pension sharing order to also be implemented by my pension provider.

I've also managed to port the majority of the mortgage over to my own sole-purchased property since the ex-wife also went into rental - saving me a substantial amount in interest payments!

Its been a tough 11months or so, but the feeling of having my own house which the ex has no claim on and no right to enter - so my own haven... its fantastic. 

Due to the gap in incomes, I walked away with 41% of the house Equity. Ex-got 59% - however her extra equity was then offset against the majority of what she would have been entitled from my pension- so she only gets 18% of that, meaning my overall pension (vs. Her own pensions & the 18% of mine she'll have) is far larger.

Overall a 50/50 split in total assets - with our now 3 (then 2) year old son spending 50% time with us each.

silvercar

swanseajack91 said:

maisie_cat said:

There is such a mortgage (joint borrower sole proprietor) but they are more usually between parents/children.
She would be jointly and severally liable and having this mortgage will prevent her having another mortgage unless she has a high income so she'll be stuck in rented property.

She is aware of this and is not looking to buy another house for at least a few years, currently living at her parents House I guess that's her decision. 

DE_612183 said:

If you are able to pay her half the equity - can you not use that money instead to reduce the borrowing required for the mortgage?

Have you got some "figures" even estimates in mind - might be easier to work out.

PS - "Bluebirds!"

I could do that but she wants her money out of the house 171k left on mortgage 250k value on the house I can only lend up to 145k in my sole name.

haha not a football fan luckily!

loubel said:

You will need the lender's consent to remove her from the Title and they are unlikely to agree to this if you aren't eligible for a mortgage on your own.

If she wants her money now then you can set up a Declaration of Trust that states that you have paid out her share in the equity and that she no longer has any claim (despite still being a co-owner on paper) and that you take on 100% of liability under the mortgage.

This isn't really in her interests long-term though, as that agreement is only between you two and so the lender could (and would) still take action against her if you stop paying or otherwise breach the mortgage terms. She will also struggle to get a mortgage on another property while she remains liable for your (joint) mortgage.

She would definitely need to take legal advice before agreeing and consider adding an 'out' strategy where she can force you to sell if you can't remortgage within a specified length of time.

That was what I was wondering if something like that could be done, I understand its not in her interest I guess its a decision she needs to make if its a possibility, I think I need to speak to a solicitor and see if the details can be hashed out. was wondering if anyone has done similar 

If she isn’t in a rush to buy again and you don’t want to lose the home, you could both agree to wait a few years. Maybe in that time your income will go up sufficiently to take on the mortgage in your own name.

Hoenir

Your ex will be advised by her solicitor not to enter any such arrangement and seek a clean break. Appreciate that it's difficult with emotions raw. Time to accept that you need to move on and plan for a new start.