How to sign over 2 properties to stbxw

[Whiteminnowfish]

We jointly own 2 flats. Both in negative equity.

How would I sign them Both over to her. I don't want to own them anymore

The flats will need to be valued so you can find out what the shortfall is.

You will both have to find a way to repay the negative equity to the bank… but even then she’d be looking at a 100% LTV.

After which, she will need to apply for a mortgage, will she be able to make both sets of payments in just her name? If she isn’t a decent earner the banks may be wary of her taking on both properties. The issue is that the loan to value ratio will be very high. For example, let’s say;

Flat is worth 100k. Mortgage is 110k. Even if you repay the 10k negative equity then she’ll need a 100% mortgage for 100k. Which is impossible these days (quite rightly).

You can't just sign them over to her, at least not without agreement from the bank as well as her. Failing that you'd need a court to order it. Even if you defaulted on the mortgage payments, not recommending this or anything, it would take time for the bank to foreclose and force a sale and then until you agreed or the court ruled on it, you would both still owe the bank for the amount in negative equity. Unless you're in the US where the rules are different.

You're effectively selling your half to her - even though no money might be being exchanged. It's a legal transaction, and she needs to be able to afford them.
You will both need a solicitor, and she will need a mortgage adviser if she needs a mortgage.

Trying to think of possible solutions to your issues, could be for you both to have one flat signed over to you in full, then you'd need to move in so it's the family home and shouldn't count for UC. You'd still need her agreement and the banks. I can't see any quick resolution to the ownership issue, but someone in legal might be better informed.

Is there no equity in the flats? Have you had them valued recently?

It's really unusual for property to be in negative equity in the current financial situation. When did you purchase the properties?

We did this recently -any conveyancer can do it as long as you are still married it is straightforward. However if you officially separate on the same tax yeear there is a tax implication so do it before 5 April or don’t officially separate until 6April 2023

Does she want to own them?

@JangolinaPitt

We did this recently -any conveyancer can do it as long as you are still married it is straightforward. However if you officially separate on the same tax yeear there is a tax implication so do it before 5 April or don’t officially separate until 6April 2023

What do you have to do...does it cost much?

@NerrSnerr

Does she want to own them?

Yes. I've not discussed but I don't want them anymore

If they are in negative equity she might not want them either !

@notapizzaeater

If they are in negative equity she might not want them either !

In 10 years time they will increase in value. So not necessarily

I think if you do this you will both be required to sign the paperwork so you probably will need her to be in agreement.

Can she afford the mortgages on her own on both? Realistically she might not want them either , if in negative equity now you would be liable for half of it