Transfer of Equity and paying off lump sum.

[JohnnyMarr]

Could anyone possibly explain the transfer of equity process for me?

ExH and I have been divorced for 5 years, we're NC. Our consent order stated that his name should remain on the mortgage for 5 years, after which I must release him from it, or sell the house.

To bring the mortgage down to a level which my mortgage company deem to be "affordable" (I've been paying it for the last five years!) for me, I need to pay off a lump sum.

I'm concerned that in order to transfer the mortgage to my sole name I'll have to pay off the lump sum whilst Exh is still on it and am paranoid there's some kind of loophole enabling him to benefit from this before the transfer's completed!

If anyone can outline the process in layman's terms I'd really appreciate it!

Get a solicitor. Explain the situation. You will need one for the remortgage anyway as a going from joint names on deeds and mortgage to you only.
Should be quite straightforward as you will both need to agree if you are paying your ex any money.
As an example:
Current mortgage = £100k
New mortgage = £80k
Your lump sum £20k
new mortgage and lump sum combined will pay off current mortgage.

Are you giving him some money from the house or just releasing him from the mortgage?

Thank you both.

I've contacted a couple of solicitors today and am waiting to hear back from them. I'm just releasing him from the mortgage with no payment to him if it makes a difference.

It’s unusual to have to stay named on a mortgage without retaining an interest in the property. Are you sure you don’t owe him anything ?

obvs don’t know your circumstances but that’s unusual especially if you have money available to pay off a lump sum towards the house

Nope, I definitely don't owe him anything - he's a very high earner and I was a trailing spouse. The court acknowledged the impact my support of his career had had on my own earning potential and awarded spousal maintenance for a limited period and all equity in the FMH.

I absolutely don't have a lump sum available, more's the pity, but I'm fortunate that my dad is in a position to help me financially, as much as I'm mortified that he's needed to do so.