Getting name off deeds and mortgage
Discussion
We've found ourselves in a stressful situation and we're getting conflicting advice.
My other half entered in to a mortgage with her sister so that her sister could afford her first house. My other half has never lived there, never paid a penny towards it and expects nothing out of it.
My OH and I are now about to start buying a house together and want to get her off the mortgage and seeds for the sisters place. We were under the impression all was going well, mortgage in process etc, but she had been advised to get a solicitor. Her solicitor is advising that this can't really be done, she will have her mortgage application rejected because she won't be the only person on the deeds, and the best thing is for my OH to seller sister the house (plus all fees and SDLT) and starting fresh.
As a divorcee, my experience was completely different! £100 to the mortgage company and £500 to a solicitor and all ties were severed.
This is all based in Scotland, although I'm not sure it matters.
Is what we are trying to achieve really that difficult?
My other half entered in to a mortgage with her sister so that her sister could afford her first house. My other half has never lived there, never paid a penny towards it and expects nothing out of it.
My OH and I are now about to start buying a house together and want to get her off the mortgage and seeds for the sisters place. We were under the impression all was going well, mortgage in process etc, but she had been advised to get a solicitor. Her solicitor is advising that this can't really be done, she will have her mortgage application rejected because she won't be the only person on the deeds, and the best thing is for my OH to seller sister the house (plus all fees and SDLT) and starting fresh.
As a divorcee, my experience was completely different! £100 to the mortgage company and £500 to a solicitor and all ties were severed.
This is all based in Scotland, although I'm not sure it matters.
Is what we are trying to achieve really that difficult?
OP there is too much going on here for me to ask the questions I need to to give you a better picture of what is possible.
What I can say is that I would want a second opinion on this.
For a start I would want to know how the two held the property and if there was a Trust Deed or else there could possibly be tax implications.
The only SDLT issue that I can see is that the HMRC would take half the mortgage debt that currently exists as being the consideration paid by the Sis for HO's share of the property (i.e. £250k mortgage in joint names become £250k mortgage in Sis's sole name so consideration of assumption of debt with a figure of £125k to declare on the SDLT return and appropriate tax paid.
What I can say is that I would want a second opinion on this.
For a start I would want to know how the two held the property and if there was a Trust Deed or else there could possibly be tax implications.
The only SDLT issue that I can see is that the HMRC would take half the mortgage debt that currently exists as being the consideration paid by the Sis for HO's share of the property (i.e. £250k mortgage in joint names become £250k mortgage in Sis's sole name so consideration of assumption of debt with a figure of £125k to declare on the SDLT return and appropriate tax paid.
Chucklehead said:
We've found ourselves in a stressful situation and we're getting conflicting advice.
My other half entered in to a mortgage with her sister so that her sister could afford her first house. My other half has never lived there, never paid a penny towards it and expects nothing out of it.
My OH and I are now about to start buying a house together and want to get her off the mortgage and seeds for the sisters place. We were under the impression all was going well, mortgage in process etc, but she had been advised to get a solicitor. Her solicitor is advising that this can't really be done, she will have her mortgage application rejected because she won't be the only person on the deeds, and the best thing is for my OH to seller sister the house (plus all fees and SDLT) and starting fresh.
The lender have lent money on the basis that there are two joint applicants, jointly owning the property. They're each liable for any debt.My other half entered in to a mortgage with her sister so that her sister could afford her first house. My other half has never lived there, never paid a penny towards it and expects nothing out of it.
My OH and I are now about to start buying a house together and want to get her off the mortgage and seeds for the sisters place. We were under the impression all was going well, mortgage in process etc, but she had been advised to get a solicitor. Her solicitor is advising that this can't really be done, she will have her mortgage application rejected because she won't be the only person on the deeds, and the best thing is for my OH to seller sister the house (plus all fees and SDLT) and starting fresh.
To get your OH's name off that mortgage, the sister needs to take a mortgage out in her own name only - because she'll then be 100% liable for any debt.
If the sister can't get a mortgage without your OH, then there's a choice - sell the house, so your OH is out; or stay as-is.
The "deeds" have to reflect the lender, and vice-versa.
TooMany2cvs said:
The lender have lent money on the basis that there are two joint applicants, jointly owning the property. They're each liable for any debt.
To get your OH's name off that mortgage, the sister needs to take a mortgage out in her own name only - because she'll then be 100% liable for any debt.
If the sister can't get a mortgage without your OH, then there's a choice - sell the house, so your OH is out; or stay as-is.
The "deeds" have to reflect the lender, and vice-versa.
This.To get your OH's name off that mortgage, the sister needs to take a mortgage out in her own name only - because she'll then be 100% liable for any debt.
If the sister can't get a mortgage without your OH, then there's a choice - sell the house, so your OH is out; or stay as-is.
The "deeds" have to reflect the lender, and vice-versa.
thanks all.
Yes, her sister now qualifies for a mortgage in her own name. Previously she was on a temp contract (and had been for 10 years), but they have since made her permanent.
She had started the process of applying for a mortgage in her own name, and thought the meeting with the solicitor was to arrange removing my OH from the deeds - then it all got a lot more confusing. The new mortgage and old mortgage are both with Nationwide, so we were expecting a relatively expensive paper exercise and that is all.
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Yes, her sister now qualifies for a mortgage in her own name. Previously she was on a temp contract (and had been for 10 years), but they have since made her permanent.
She had started the process of applying for a mortgage in her own name, and thought the meeting with the solicitor was to arrange removing my OH from the deeds - then it all got a lot more confusing. The new mortgage and old mortgage are both with Nationwide, so we were expecting a relatively expensive paper exercise and that is all.
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Chucklehead said:
thanks all.
Yes, her sister now qualifies for a mortgage in her own name. Previously she was on a temp contract (and had been for 10 years), but they have since made her permanent.
She had started the process of applying for a mortgage in her own name, and thought the meeting with the solicitor was to arrange removing my OH from the deeds - then it all got a lot more confusing. The new mortgage and old mortgage are both with Nationwide, so we were expecting a relatively expensive paper exercise and that is all.
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Because it's not just having her name removed from the deeds; your OH's sister now effectively needs to buy the 50% of the property that your OH 'owns' and is liable for. This will need a new mortgage with the attendant costs and timings that will inevitably be faced. Yes, her sister now qualifies for a mortgage in her own name. Previously she was on a temp contract (and had been for 10 years), but they have since made her permanent.
She had started the process of applying for a mortgage in her own name, and thought the meeting with the solicitor was to arrange removing my OH from the deeds - then it all got a lot more confusing. The new mortgage and old mortgage are both with Nationwide, so we were expecting a relatively expensive paper exercise and that is all.
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Chucklehead said:
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Because the original debt and mortgage was issued to 2 parties based on joint affordability - won't Nationwide want certainty that the remaining person can still service that debt?Chucklehead said:
thanks all.
Yes, her sister now qualifies for a mortgage in her own name. Previously she was on a temp contract (and had been for 10 years), but they have since made her permanent.
She had started the process of applying for a mortgage in her own name, and thought the meeting with the solicitor was to arrange removing my OH from the deeds - then it all got a lot more confusing. The new mortgage and old mortgage are both with Nationwide, so we were expecting a relatively expensive paper exercise and that is all.
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Seriously????Yes, her sister now qualifies for a mortgage in her own name. Previously she was on a temp contract (and had been for 10 years), but they have since made her permanent.
She had started the process of applying for a mortgage in her own name, and thought the meeting with the solicitor was to arrange removing my OH from the deeds - then it all got a lot more confusing. The new mortgage and old mortgage are both with Nationwide, so we were expecting a relatively expensive paper exercise and that is all.
We're happy to have her name off the deeds, but what is it about this process that is causing problems? Why can't we walk in to a solicitors office and pay to have her removed?
Wow.
Think of it from the bank's point of view...
"We lent £250k to these two girls on the basis of their employment etc... and now one of them wants to walk away."
"Sure - no problem. I mean, why did we bother with all the due diligence in the first place?"
"Either of them could bugger off at any moment by turning up for a meeting with a magical solicitor."
Jesus Christ.
Your OH has a MASSIVE DEBT SHE IS RESPONSIBLE FOR.
She can't just walk away.
What if the house has dropped in value?
What if her sister was unemployed?
TooMany2cvs has explained what is going on here.
It's not rocket science!!!!
Chucklehead said:
Am I not being clear??
Her sister is currently applying for a sole mortgage in her own name for the property. My OH will not be involved.
Crystal clear.Her sister is currently applying for a sole mortgage in her own name for the property. My OH will not be involved.
What on earth makes you think that the bank would be happy to wipe out your OH's massive debt BEFORE THE NEW MORTGAGE IS APPROVED??????????????
walm said:
Chucklehead said:
Am I not being clear??
Her sister is currently applying for a sole mortgage in her own name for the property. My OH will not be involved.
Crystal clear.Her sister is currently applying for a sole mortgage in her own name for the property. My OH will not be involved.
What on earth makes you think that the bank would be happy to wipe out your OH's massive debt BEFORE THE NEW MORTGAGE IS APPROVED??????????????
Chucklehead said:
Am I not being clear??
Her sister is currently applying for a sole mortgage in her own name for the property. My OH will not be involved.
OP seriously there are a lot of people posting on here that don't seem to be able to follow the thread, let alone know that correct answer. Her sister is currently applying for a sole mortgage in her own name for the property. My OH will not be involved.
I know exactly what i am talking about on this topic, which is precisely why i am not giving out too much advice as i know that there are a number of questions i need to know the answer to to give you the correct answer.
I do not think that your OH's sis is being given the correct advice, or has not understood what she has been told, based on what you have posted.
I would suggest that you call your solicitor and discuss it with them.
General Fluff said:
What are you getting so upset about Walm? All they want to do is transfer the debt from 1 sister to the other, who is now able to afford the entire debt by herself. This seems pretty logical to a lay person so chill out. I'm sure the real life complexities will come to the fore
It's the timing issue.Until the new mortgage is fully approved and ready to go (new house valuation, due diligence on the sister, fees paid etc...) you can't just walk away from the old debt!!
It's totally logical to switch from a joint loan to a single loan but you can't have some sort of bizarre interim period where two people have a loan out on a house that only one of them owns!!
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