Mortgage change and first time help to buy scheme

cgphillips8

Hi All,
My son is splitting with his wife. They have a mortgage with a first time help to buy scheme.
Since my son would like to stay in the house and not sell and if we are able to give the DIL her portion of the money she would have got from selling the house is it legally possible to remove her from the mortgage documents and leave my son on the mortgage? Also does the Help to Buy scheme make this more complcated or even impossible?

ACG

I dont know about the HTB scheme, but the ex can only be removed from the deeds if removed from the mortgage at the same time. 

MattMattMattUK

cgphillips8 said:

Hi All,
My son is splitting with his wife. They have a mortgage with a first time help to buy scheme.
Since my son would like to stay in the house and not sell and if we are able to give the DIL her portion of the money she would have got from selling the house is it legally possible to remove her from the mortgage documents and leave my son on the mortgage? Also does the Help to Buy scheme make this more complcated or even impossible?

Does your son earn enough to take over the whole mortgage?

For the HTB loan it can be done, but it requires a conveyancer to complete the process and it has affordability criteria.
https://www.gov.uk/guidance/how-to-change-ownership-of-your-help-to-buy-home

amnblog

The HTB scheme needs to be reviewed as is the case with the main mortgage.

Both the mortgage lender and the Help to Buy Team need to be comfortable with your Son as a sole owner occupier.

cgphillips8

Hi All,

Thank you for the comments.

I believe my son can afford the repayment.
Current mortgage is £133k  HTB is £57k, value of the house is approx£290-295k.
He earns around £33k

Looking at it differently, is there a way he can purchase the house.if it is on the market for £290k.
Total mortgage plus loan on the house is £190k leaving£100k profit
If he gives the ex-wife approx £45-50k.

Just a bit confused on how it would be possible as I see there is £45k missing in the total.

Hoenir

cgphillips8 said:

Just a bit confused on how it would be possible as I see there is £45k missing in the total.

The ex will need to be paid her share of the equity. Other assets such as pensions may come into the equation.  

I'd suggest that your son speaks to a family solicitor. This is likely to be far more complex than just taking on the mortgage. Possibly result in the sale of the property in order that assets are equitably divided.