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  • FIRST POST
    • Trebor16
    • By Trebor16 12th May 18, 3:32 PM
    • 2,906Posts
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    Trebor16
    Help With Equity Release Letter for Mortgage Provider
    • #1
    • 12th May 18, 3:32 PM
    Help With Equity Release Letter for Mortgage Provider 12th May 18 at 3:32 PM
    Hello,

    I am in the process of getting a mortgage to pay off my ex wifes share in our home. We divorced in 2016, we agreed our own repayment plan and it was done amicably without solicitors.

    This year I decided to get a mortgage on the house (it's currently mortgage free) so I can pay off what I owe her, as it will mean the house will then be in my sole name. She is very supportive of this and it's a win win for us both. The lender I am applying to, First Direct have asked that she supply a letter to them relinquishing all interest in the house when they pay her the amount she is owed by me.

    Here's where it has become difficult. They are insisting that the letter be written by a solicitor and we have both approached some solicitors and to say they are complicating matters is an understatement. One solicitor said they could not provide such a letter, another started asking why we had no court order for the house when we divorced (we didn't get one and the court were happy with the arrangements we came up with ourselves).

    Has anyone had a similar situation and how did they sort it out? Perhaps they can advise of a solicitor who was able to do this for them and made it a simple process, which First Direct are saying it is.
    "You should know not to believe everything in media & polls by now !"


    John539 2-12-14 Post 15030
Page 1
    • Thrugelmir
    • By Thrugelmir 12th May 18, 5:34 PM
    • 61,361 Posts
    • 54,610 Thanks
    Thrugelmir
    • #2
    • 12th May 18, 5:34 PM
    • #2
    • 12th May 18, 5:34 PM
    Very simply. A private agreement whether it be in writing or not, is not a formal agreement and it will not be legally binding. A private agreement between spouses does not bind the court therefore either spouse is free, even after the divorce has been finalised (Decree Absolute has been granted) to file an application at court seeking a financial claim against the other. A solicitor therefore could expose themselves to a claim should one be made. Even years later. By drafting such a letter.

    While sometimes matters seem to be easily resolved. Dotting i's and crossing t's is a neccessity. As the law requires something more.

    Obtain a clean break consent order. Then matters can move forward.
    Last edited by Thrugelmir; 12-05-2018 at 5:38 PM.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • kingstreet
    • By kingstreet 12th May 18, 5:56 PM
    • 34,514 Posts
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    kingstreet
    • #3
    • 12th May 18, 5:56 PM
    • #3
    • 12th May 18, 5:56 PM
    You are remortgaging an unencumbered property. A solicitor will be needed to administer the funds, handle the transfer of equity and register the charge with the Land Registry.

    First Direct isn't going to give you thousands of pound directly if you don't have an existing FD mortgage. No lender would.

    Your solicitor should then insist on your wife having a solicitor to pay the money to and in return her solicitor provides your solicitor with an undertaking that any claim to the property will end with the transfer of the funds.

    What FD is asking for appears to be because of a misunderstanding of the above process.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Trebor16
    • By Trebor16 12th May 18, 8:41 PM
    • 2,906 Posts
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    Trebor16
    • #4
    • 12th May 18, 8:41 PM
    • #4
    • 12th May 18, 8:41 PM
    A solicitor is being used to handle the remortgage of the property and First Direct have made a mortgage offer on the property.
    "You should know not to believe everything in media & polls by now !"


    John539 2-12-14 Post 15030
    • kingstreet
    • By kingstreet 13th May 18, 9:47 AM
    • 34,514 Posts
    • 18,753 Thanks
    kingstreet
    • #5
    • 13th May 18, 9:47 AM
    • #5
    • 13th May 18, 9:47 AM
    A solicitor is being used to handle the remortgage of the property and First Direct have made a mortgage offer on the property.
    Originally posted by Trebor16
    ... and your solicitor is unable to resolve the required undertaking with the solicitor representing your wife?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Trebor16
    • By Trebor16 13th May 18, 10:35 AM
    • 2,906 Posts
    • 2,604 Thanks
    Trebor16
    • #6
    • 13th May 18, 10:35 AM
    • #6
    • 13th May 18, 10:35 AM
    She is not represented by a solicitor. And because of shortcomings in First Directs processes, it hasn't got to the solicitors yet.
    "You should know not to believe everything in media & polls by now !"


    John539 2-12-14 Post 15030
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