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Original poster

Mortgages...help me break free! Lol

15 replies

Uncertain007 · 21/08/2024 18:45

Hi mum's,

Advice please for the simplist way ahead...

Had a joint mortgage.
Partner suddenly left me after 6 years to go to the USA. He said if I gave him the money he paid in (£25k) he'd agree to come off the mortgage.

2.5years later I'm no longer a wreck and want this financial tie gone. I have the savings and have made the mortgage payments over these 2.5 years without major difficulty.

What is the best, easiest process. Please help me.

Him now living in the USA complicates matters. Thank you xx

OP posts:

Makingchocolatecake · 21/08/2024 19:03

Can't you ask your mortgage advisor? This what they are there for!

Biggaybear · 21/08/2024 19:04

Assuming you are not married then........

Legally you need to get the property valued (more than 1 would help get a more balanced view)

Then subtract what's left on the mortgage.

The answer is the equity. He then gets 50% of this figure.

You then apply for a mortgage on your name.

Some people might argue that he's not paid anything for 2.5 years but then he's not had enjoyment of the property and (could) claim rental income from you for his 50% share.

Bjorkdidit · 21/08/2024 21:14

If you have a joint mortgage doesn't that also mean you jointly own the property so he'll have to transfer his half to you with a solicitor doing the legal work.

For the money, I'd sense check his £25k offer by checking sold prices of similar properties locally, but it's likely to be a good deal for you because he only wants back what he's paid in and he's not asking for a share of any increase in value, so if the estimated value is higher than when you bought the property, bite his hand off before he realises.

Xenia · 21/08/2024 21:20

The crucial issue is if you were married. You used the word partner so presumably not? if not then you don't need a clean break divorce settlement. Next stage is pay £3 for the title to the property to double check in whose name it was and check if you had a contract with him over percentages you each have and check if you are tenants in common or joint tenants (if joint tenants , now, tomorrow "sever the joint tenancy).

You say you "have the savings". So I assume that means £25k in the bank to pay him back and will not need to increase the mortgage. However the lender may not agree to take him off if he earns more than you do. Check if your income allows you to support the mortgage on your own.
If it does then speak to him about coming off the mortgage. You may need a US or UK lawyer to help as he may not agree to be removed until he has the £25k but you may not want to pay the £25k untill he signs the paperwork to come off - transfer of the property to you with consent from the lender, new mortgage in your name. The lawyer can also ensure the document you and he sign says nothing else is owed between you and he waives any other claims to the equity and anything else against you.

if you were married things are completely different.

Original poster

Uncertain007 · 21/08/2024 23:23

Thanks.
We were not married. I did update the bank regarding the situation once he had left and they were most helpful.

I had the house valued in 2022 at £260,000.
It was purchased for £230,000.

I will ring the bank and see what they suggest. Always be careful in life. People who seem perfect can become unrecognisable.

I'd love to just transfer the money he requested but the process with transatlantic solicitors seems daunting. Thank you for all your advice. X

OP posts:

Original poster

Uncertain007 · 21/08/2024 23:26

Ps
The bank, when I rang in 2022, said I couldn't afford the mortgage on my own.

I've paid off enough to the point where, in 2024, it is now deemed affordable for me.

OP posts:

AgreeableDragon · 22/08/2024 06:48

@Uncertain007 Do not just transfer the money! That solves nothing at all because your mortgage with him still remains and he will still be a part owner of the property!

You will need to remortgage the property and also remove him from the title deeds. You will need to get a solicitor involved. It’s a reasonably simple process, but definitely needs to involve a solicitor ( the mortgage company will insist on that anyway). It will then be the solicitor’s job to send him the money.

Original poster

Uncertain007 · 23/08/2024 09:48

Thank you.

OP posts:

Original poster

Uncertain007 · 26/08/2024 16:35

Is it OK to just pay a set amount, in this case £25000 if agreed by both parties?

I keep reading about transfer of equity

OP posts:

3under · 26/08/2024 16:49

I did a transfer of equity a few years ago when XDP and I broke up, he stayed in our house but paid me an amount we both agreed on based on the equity at that time and then got a mortgage in his own name for the remainder and got the ToE to get my name off the deeds

AtTheTurnybus · 26/08/2024 16:54

Sometimes, you really need a professional. This is one of them. Get a mortgage advisor and a solicitor.

I'd be asking which costs could be deducted from his share.

Biggaybear · 26/08/2024 20:03

Uncertain007 · 26/08/2024 16:35

Is it OK to just pay a set amount, in this case £25000 if agreed by both parties?

I keep reading about transfer of equity

You dont seem to have listened to what people have said.

You need to do this legally & have the property put into your name. At the same time you need to get the mortgage put into your sole name too. Usually by doing the former will lead to the latter as there will be an entry at Land Registry that there is a loan on the property & the lender will need to be advised.

Just giving him a sum of money & hoping all this will go away will not work, as he will still legally be a joint owner of the property and therefore entitled to half of the equity......which is increasing every year because you are paying off the mortgage.

The sooner this is done the better.

Original poster

Uncertain007 · 27/08/2024 07:59

Big gay bear;

I have read the comments and am very appreciative to everyone.

I am going to speak with my mortgage advisor and have contacted a solicitor recommended to me by a friend.

I was simply asking if, with legal safeguards, a set amount agreed by both parties is possible or does the equity have to be taken into consideration.

OP posts:

Nomoretakeaways · 27/08/2024 08:18

He should have been paying for the mortgage this last 2.5 years as his name is on it. You may be able to discount 2.5 years worth of payments from his 25k.

JengaCupboard · 27/08/2024 08:27

Your financial settlement is a separate issue - you can give him 10p if that's what he'll accept. I would do the legal work and see what he's entitled to vs. what he's asking for.

In any case you will both need a solicitor to sign a TR1 which is transfer of equity in terms of land registry. This is again separate to who is paying the mortgage.

In my limited experience, you don't take somebody off a mortgage, rather you re-mortgage with a new product as a sole applicant.

Get yourself a good financial advisor. They are worth their weight in gold.

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