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    • JenGill23
    • By JenGill23 17th May 19, 10:10 AM
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    JenGill23
    SMI Loan DWP
    • #1
    • 17th May 19, 10:10 AM
    SMI Loan DWP 17th May 19 at 10:10 AM
    Hi, can anyone help ?
    If a SMI loan is taken out through the DWP for interest payments on a mortgage , if the mortgage is joint , but the owners are divorced , do both parties have to sign the paper work ?
    Also how does it affect the equity split on sale of the property ?
    Will this loan be added to the deeds of the property also .
Page 1
    • silvercar
    • By silvercar 17th May 19, 11:30 AM
    • 39,037 Posts
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    silvercar
    • #2
    • 17th May 19, 11:30 AM
    • #2
    • 17th May 19, 11:30 AM
    From Shelter:

    Signing up to an SMI loan
    A claimant will be required to sign a charge form in order to secure the SMI loan against the claimant’s home. If the claimant’s partner is a joint owner s/he will also be required to sign the form. This charge is registered at the Land Registry. If there are joint owners that are not the claimant’s partner, the claimant will be required to sign an equitable charge in respect of her/his beneficial interest in the home. This charge is not registered at the Land Registry.
    • silvercar
    • By silvercar 17th May 19, 11:39 AM
    • 39,037 Posts
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    silvercar
    • #3
    • 17th May 19, 11:39 AM
    • #3
    • 17th May 19, 11:39 AM
    Hi, can anyone help ?
    If a SMI loan is taken out through the DWP for interest payments on a mortgage , if the mortgage is joint , but the owners are divorced , do both parties have to sign the paper work ? No, your claim alone as you are no longer together.
    Also how does it affect the equity split on sale of the property ?Your SMI loan comes out of your share of the equity
    Will this loan be added to the deeds of the property also.No.
    Originally posted by JenGill23
    My answers in red based on what I quoted above. Presumably as part of the divorce settlement you agreed to continue with the mortgage payments?
    • JenGill23
    • By JenGill23 18th May 19, 7:58 AM
    • 3 Posts
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    JenGill23
    • #4
    • 18th May 19, 7:58 AM
    • #4
    • 18th May 19, 7:58 AM
    Should the absent owner been informed of the loan ?
    • silvercar
    • By silvercar 18th May 19, 3:45 PM
    • 39,037 Posts
    • 162,686 Thanks
    silvercar
    • #5
    • 18th May 19, 3:45 PM
    • #5
    • 18th May 19, 3:45 PM
    Should the absent owner been informed of the loan ?
    Originally posted by JenGill23
    Not necessarily. It is the resident's claim alone and the equitable charge won't effect the absent owner.

    I do think this is all dependent on the claimant being able to show that they no longer have a partner. If the applicant for SMI stated they had a partner, then the DWP would want a the absent owner to also sign the form and the charge be registered.
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