Over 160,000 people get divorced each year, and many
more co-habitating parties separate. Despite this being
a common occurrence few of the mortgage lenders make
it easy to transfer a property, subject to mortgage,
into one name.
Transfers of Equity or Transfer Subject to Mortgage
are not dealt with by lenders with the consideration
and understanding that the situation deserves. Too often
initial enquiries are answered by a remote Call Centre
operative, who declines the Transfer by using too defined
income criteria, without looking at the broader picture
of whether the mortgage is actually affordable for the
remaining partner. In these circumstances it is important
to request a meeting at your local Bank or Building
Society Branch to discuss the mortgage. It is a good
idea to use a Budget Planner (see our mortgage
calculator page) to demonstrate affordability. An
alternative is to discuss your options with an Mortgage
Adviser, who will liase with the lender on your behalf.
Transfer Subject to Mortgage seemingly takes an age
if the mortgage lender is left to their own devices
and some external pressure from and Independent Mortgage
Adviser can assist in speeding up the process.
The existing mortgage lender will charge you fees to
transfer and it is often worth considering re-mortgaging
on a fee free deal (although you will have to still
pay the legal costs of the Transfer), particularly if
extra borrowing on your mortgage is required. Re-mortgaging
can also be quicker.
Legal Matters & Other Mortgage Issues
Solicitors
It is important to have a good Solicitor. The Solicitor's
Family Law Association (01689 850227) can provide you
with names of local Solicitors. You may be able to get
Legal Aid if you are a non-earning spouse. Don't however
use your Solicitor as an emotional backstop as they
charge fees per hour. Many Independent Mortgage Advisers
do not charge fees and companies like Miers Mortgages
are used to providing this safety net.
Valuation
Get a written valuation of your property. You can obtain
a valuation from a local Estate Agent, but this would
tend to be for 'sale purposes' and tends to be higher
than if you paid for a 'matrimonial valuation'.
Agreement
Although it can be difficult, try to be as amicable
as possible. Often the intangible emotional problems
transfer themselves to the money side and arguments
break out over 'Who's CD it is!' Find out as much as
possible about your own and spouse's/partner's finances
- calmly! Make a list of your outgoings and possible
future expenditure and a list of your liabilities, such
as mortgages, loans, etc. Draw up an asset schedule.
Think of everything - house, pension, endowment policies,
savings and investments and separate them into joint
and single.
Chronology Of Marriage
This is financial only! - not the breakdown of the marriage.
It is about the building up of assets and the contribution
of each spouse to the household expenditure. Include
date of marriage, dates of birth of children, promotions,
payrises, house moves, including the property value
and mortgages.
Wills
You must change your Will.
YOUR
HOME MAY BE REPOSSESSED IF YOU DO NOT
KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME View
Terms of Business
| Site Designed By
Taylored Webs Direct
