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Mortgage, divorce and home ownership

3 replies

RBH · 12/06/2008 12:45

Right keep trying to write this but getting v convoluted so please bear with me!

If a couple are getting divorced and both agree that the wife should keep the house but she can't get a mortgage in her own name as has been a sahm so no independent income can the man get the mortgage but legally the house belong to her?

Is it better to remortgage on a 5 year deal in his name and then in the divorce settlement say the house is hers or is this not possible? At the end of the 5 years would it be possible to transfer the mortgage as by then she would be working? Even in those 5 years it would be possible for her to pay the mortgage as long as it was interest only.

OP posts:
missingtheaction · 12/06/2008 12:49

ask your solicitor that one! or try ondivorce website, or wikivorce website

mumblechum · 12/06/2008 12:59

OK, this happens all the time. Your solicitor should be able to explain it, but essentially the house is transferred into the wife's name but both names remain on the mortgage account.

That obv. leaves the husband in a position whereby he has a liability but not an asset, so the wife will indemnify the husband within the consent order. That means that if she doesn't pay the mortgage and the house is repossessed leaving negative equity, she takes sole responsibility.

It's only going to be a problem if there's a significant risk of negative equity.

The wife can apply, after she's paid the mortgage by herself for at least a year, for the husband to be released from the mortgage.

RBH · 12/06/2008 13:01

Thank you!

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