Separation agreements

J

Jaydee

Registered User
Messages
48
Has anyone had to get a separation agreement in place before being offered a mortgage?

If so, could you advise on how long it took to get one and what was involved?

Cheers
 
Can I make the assumption that its a situation as follows:

1.Borrower is married and informally separated.
2. As he is married and has a spouse, then if he buys a house spouse may have a claim.
3. Lender does not want spouse to have any claim
4. Lender says organise a formal Separation Agreement and Deed of Waiver so that quite clear that spouse no longer has any claim.

This would be quite normal. It will take as long as it takes two people to agree the terms of Separation - a week or several years depending on the parties involved. It will involve solicitors so perhaps talk to your conveyancing solicitor now and ask.

mf
 
Hi,

It may also be asked for to see if there are any children in the relationship and what maintanance agreement may be in place, as this will be taken into account for mortgage amount being given
 
How long is a piece of string!!!! A separation agreement implies that both parties have agreed all the terms under which they separate. Terms can be agreed between the two separating people hence the term separation agreement. A legal document is drawn up which should include all terms. If agreement cannot be agreed directly mediation can be tried to reach a settlement but be advised that mediators are neither legal or taxation experts and their advice has to be checked. Previous posters are right issues regarding pensions, children, property, maintenance etc. all has to be taken into account. Any mortgage companies I have talked to would not consider me for a mortgage on my own without having a separtion agreement or divorce in place. Costs vary depending on how long it takes I got a quote before I started the process and was not charged any more than was agreed. Basically it is a lot easier in this country to get married than to separate and divorce!!! Good luck.
 
As far as I know - the Banks want to see a 'Waiver' clause in writing. This waiver is given by both parties and it says they no longer hold any claim over future property purchases by the other party.
I presume beyond that the bank needs to know what kind of financial committments are attached to the parties (e.g. Child support/Maintenance).
Both these elements are usually part of a Separation Agreement.
 
There are no issues re: property, maintenance, children etc

The other party has agreed to sign a deed of waiver but does anyone know if a deed of separation is also needed?
 
Has other party also agreed to sign a Deed of Separation? Does it not make sense to do that now anyway? Suspect lender will not accept just a Waiver.

mf
 
The first advice we got (from a solicitor) was that we only needed a deed of waiver. However, it transpires (although I'm not sure how many) that a deed of separation may also be required, to show that the person buying the house does not have any additional expenditure as a result of the separation.

Lenders seem to vary so much in their basis for lending so I was wondering if anyone had been through a similar situation.
 
mf1 said:
Has other party also agreed to sign a Deed of Separation? Does it not make sense to do that now anyway? Suspect lender will not accept just a Waiver.

mf
Click to expand...

Does anyone know if a Deed of Waiver signed after a Separation Agreement would make relevant sections of separation agreement null and void?
 
it depends. It might vary the terms of the Separation Agreement - and if so, the Deed of waiver should make that explicitly clear.

What is not clear will always cause trouble.

mf
 
You must log in or register to reply here.
Back
Top