Transfer of equity
Discussion
Would appreciate some guidance from a friendly conveyancing solicitor or mortgage advisor.
Background
I've got a mortgage in my own name. Outstanding mortgage £185k, house value c£250k.
Long term girlfriend sold her house last year and moved in. She's got £40k sitting in her bank account from her house sale. We want to get her on the mortgage and deeds as tenants in common.
She's agreed to put her £40k into the mortgage (it's an offset so no issues with paying in lump sums). We want to structure the agreement such that if we had to sell the house then I'll get my 65k back, she gets her £40k back then the rest is split 50/50.
What I've done so far
I've spoken to mortgage provider to explain the above and I've had to go through a remortgage process (or interrogation if anyone has been through this recently they will know what I mean)! The upshot of this is that I have now got the joint mortgage offer on exactly the same terms. So far it has cost me £200 for a pointless valuation (it was valued just over a year ago but this wasn't good enough even though I didn't change the value). I now need to sort out the legal side.
I've had a letter from a conveyancing firm today (mortgage provider's choice of solicitor) setting out my options but I'm struggling to understand it. I'll speak to them on Monday but in the meantime I wondered if anyone has any experience of this and could guide me in the right direction.
From what I can make out, I can appoint this firm to draft the 'Transfer' only and register it at the Land Registry at a cost of £250 plus vat plus other fees such as land registry fees. They have sent me a generic transfer of equity declaration to sign but I'm aware that we will also need a deed of trust which isn't mentioned.
Stamp duty is also mentioned based on 50% of outstanding mortgage plus any additional money changing hands which is worrying. I'm tempted to use another solicitor (any recommendations I assume this can be done online or over the phone?) who might actually explain the process and discuss with us what we want to do before sending out a load of paperwork. We will also need to sort out Wills which will be next on the list.
Sorry for the long post I would appreciate any comments.
Phil
Background
I've got a mortgage in my own name. Outstanding mortgage £185k, house value c£250k.
Long term girlfriend sold her house last year and moved in. She's got £40k sitting in her bank account from her house sale. We want to get her on the mortgage and deeds as tenants in common.
She's agreed to put her £40k into the mortgage (it's an offset so no issues with paying in lump sums). We want to structure the agreement such that if we had to sell the house then I'll get my 65k back, she gets her £40k back then the rest is split 50/50.
What I've done so far
I've spoken to mortgage provider to explain the above and I've had to go through a remortgage process (or interrogation if anyone has been through this recently they will know what I mean)! The upshot of this is that I have now got the joint mortgage offer on exactly the same terms. So far it has cost me £200 for a pointless valuation (it was valued just over a year ago but this wasn't good enough even though I didn't change the value). I now need to sort out the legal side.
I've had a letter from a conveyancing firm today (mortgage provider's choice of solicitor) setting out my options but I'm struggling to understand it. I'll speak to them on Monday but in the meantime I wondered if anyone has any experience of this and could guide me in the right direction.
From what I can make out, I can appoint this firm to draft the 'Transfer' only and register it at the Land Registry at a cost of £250 plus vat plus other fees such as land registry fees. They have sent me a generic transfer of equity declaration to sign but I'm aware that we will also need a deed of trust which isn't mentioned.
Stamp duty is also mentioned based on 50% of outstanding mortgage plus any additional money changing hands which is worrying. I'm tempted to use another solicitor (any recommendations I assume this can be done online or over the phone?) who might actually explain the process and discuss with us what we want to do before sending out a load of paperwork. We will also need to sort out Wills which will be next on the list.
Sorry for the long post I would appreciate any comments.
Phil
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