Which professional(s) do I need?

[MortgageConundrum]

I’ve posted this on Money Matters as well, as my query is part legal, part financial.

I’m not sure if I need a solicitor, a mortgage advisor or a financial advisor, or all three! Or someone else entirely!

My DP has been separated for some years and is in the process of divorcing. The amount of the divorce settlement has been agreed and the majority of this amount is his STBXW’s half of the equity in the house.

The plan is for me to sell my house and use the equity to buy STBXW’s half of the house. DP will then pay the difference between that and the agreed settlement to his STBXW.

DP & STBXW have a joint mortgage on the house (variable rate, no penalty). When I buy the STBXW’s share of the house, DP and I will need a joint mortgage in our names.

DP’s solicitor is a family law solicitor but the firm they work for also do conveyancing. Ought I use that firm of solicitors for the conveyancing when I buy STBXW’s half of the house? I’m thinking it might be easiest to use the same firm that are handling the divorce so they can coordinate my purchase of the house with the divorce settlement, so that the purchase money officially/legally gets counted as part of the settlement.

(I am using an online conveyancer to handle the sale of my house, but I think as this situation isn’t straightforward, I might be best with a “real life” conveyancer. The sale of my house is likely to complete before my purchase of STBXW’s half of the house, so the two transactions do not need to be coordinated)

In terms of changing the current mortgage from DP & STBXW’s names into DP & my names or closing the current mortgage and taking out a new one, do we need a mortgage advisor or a financial advisor?

Or could the solicitor or conveyancer deal with changing names on the mortgage so we keep the current mortgage and at a later date choose a fixed rate?

I’d be grateful for any suggestions as to which professional(s) to use to make it the least complicated.

You need to agree what interest you have in the new property. From the sound of things you are paying a bit less than half the equity. Do you therefore own less than half?

Let's say the house you are buying in to is worth £200k and currently has a £100k mortgage. You are putting in £40k from your property. He is giving his ex another £10k.

You should either have half each (which represents a gift from him to you of £10k) or you should own 20% of the property free of mortgage and 25% subject to half the mortgage. In other words you would own 45% of the property and he would own 55% (he is contributing £60k to your £40k) and you the other 45%, and you are both jointly liable under the mortgage.

The conveyancing solicitor needs to be told what you both decide. If you each own half do you hold as joint tenants or tenants in common? They will explain this to you.

If you own in separate shares, eg 55/45, you will need a declaration of trust.

@Collaborate Thanks for your reply. The house is 50:50 in their names and I will be buying the whole of STBXW’s half. There is currently a mortgage in their joint names.

Using made-up figures, the house is worth £300,000, mortgage is £80,000, equity is £220,000, of which £110,000 belongs to STBXW. Say divorce settlement is £150,000, so £110,000 comes from my purchase of half the house and DP has to pay the remaining £40,000.

DP and I will own equal portions of the house afterwards.

Then all you need to do is tell the conveyancer whether you want to hold it as joint tenants or tenants in common.