Mortgage deed & other implications - separating from partner
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tizzle6560
Posts: 354 Forumite
Partner and I (not married) have decided to separate.
Both our names are on the mortgage deed and we renewed for a new 5 year fixed term approx 6 months ago.
We have had a Deed of Trust in place from the start for precisely this outcome, which in summary says - if and when I sell the property, she is entitled to X% of the profit, but only after the initial costs incurred (stamp duty, deposit etc.) are deducted first.
I do not believe there are any obligations within this contract for me to sell it should we separate. I believe we an come to a settlement figure 'out of court'.
My question is - what are the other implications of us separating with regards to the mortgage etc? I'm assuming -
- We will need to remove their name from the mortgage deed
- My lender may want to reassess me as the sole lendee?
- There could be subsequent stamp duty implications?
I'm sure there are other things I haven't though of, so any advice on those would be greatly appreciated.
TIA
Both our names are on the mortgage deed and we renewed for a new 5 year fixed term approx 6 months ago.
We have had a Deed of Trust in place from the start for precisely this outcome, which in summary says - if and when I sell the property, she is entitled to X% of the profit, but only after the initial costs incurred (stamp duty, deposit etc.) are deducted first.
I do not believe there are any obligations within this contract for me to sell it should we separate. I believe we an come to a settlement figure 'out of court'.
My question is - what are the other implications of us separating with regards to the mortgage etc? I'm assuming -
- We will need to remove their name from the mortgage deed
- My lender may want to reassess me as the sole lendee?
- There could be subsequent stamp duty implications?
I'm sure there are other things I haven't though of, so any advice on those would be greatly appreciated.
TIA
0
Comments
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I assume your partner is on the title deed as well as the mortgage (which is usually a requirement for most lenders) and you only used "obligations within this contract for me to sell" in terms of you retaining control of the property (not ownership).
Things to consider is that almost all lenders will want you as a sole name on the title if you want a mortgage in your name only. That is if you pass the lending criteria on the first place. Your partner will be mad to accept their name removed from the title deed without receiving the financial settlement.
Speaking of which, even if you can afford the mortgage in your name only but can't afford to buyout your partner, they can take you to court (hideously expensive) and force the sale to get their share as per the deed of trust.0
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