Secured loan

james9newc

Hi everyone.  My wife and I have paid our mortgage off and own our home.  We are planning to separate and she will remain in the house and we have no intention of selling it.  I am looking to take a secured loan out against the house, now while I understand she will have to agree to this as the deeds are in both names, my question is - does she have to be named on the secured loan?

sammyjammy

Yes it will have to be in both names, a new mortgage is likely to be cheaper if thats an option

james9newc

The problem is I want to buy a holiday lodge and I can’t get a mortgage on that.

sammyjammy

I meant a mortgage on the jointly owned property.

retiredbanker1

I have to ask this question - Why on earth would your soon to be ex wife agree to such an agreement.
Even the worst of the worst solicitor would advise her against this.

gwynlas

Are you buying a holiday lodge intending to live in it?
If so are you aware of all the pitfalls?

Nomunnofun1

james9newc said:

Hi everyone.  My wife and I have paid our mortgage off and own our home.  We are planning to separate and she will remain in the house and we have no intention of selling it.  I am looking to take a secured loan out against the house, now while I understand she will have to agree to this as the deeds are in both names, my question is - does she have to be named on the secured loan?

Have you given any thought to capital gains tax whenever the house is eventually sold given the fact that you no longer will be living in it.