Removing a Name From a Mortgage - Can You Confirm?

[Ikemi]

A super quick question with some background ...

I bought a freehold flat with my then girlfriend. It's one flat of six in a block. I paid for everything; deposit, solicitors, stamp duty etc. I've asked RBS to remove her name from the mortgage, which is now being processed and will cost be roughly £120.

The question is, is there anything else I need to do? Someone mentioned transfer of equity and I vaguely remember the term '50/50' arise during solicitor/contract talks, but I cannot distinctly remember. My mate, who doesn't work in the property or financial sector, reckons that removing her name is enough.

Just need some confirmation from someone who knows!

Thanks!

[Sarnie]

You need a solicitor to remove her from the deeds via a Transfer of Equity form called a TR1, which she will need to sign to waive her rights to the equity in the property.

Removing her from the mortgage only removes her liability to the debt.....

Edited by Sarnie on Wednesday 20th November 12:37

[Ikemi]

Sarnie said:

You need a solicitor to remove her from the deeds via a Transfer of Equity form called a TR1, which she will need to sign to waive her rights to the equity in the property.

Removing her from the mortgage only remove her liability to the debt.....

That's what I wanted to hear! Thanks!

[clarkey]

Just remember that you are actually buying it from her. If half the value goes over the stamp duty threshold, you'd need to pay stamp duty on the element you are considered to be buying.
So if the property is worth £300k, and has £50k equity, and you are keeping all the equity, you'll pay 1% of £125k in stamp duty. This is because you are treated as sharing the mortgage 50/50, even if you pay all of it.