Signing over mortgage

[lozz]

Hello,

I need some advice on the steps involved in signing over deeds and mortgage. My partner and I bought a house together last year, things haven't worked out and we are thinking of calling it a day. As it stands I commute to work every day and don't really spend many weekends in our there. My partner on the other hand works locally and would spend more time there. He has said that if we did decide to call it a day that he would like to keep the house and not have to sell, thats fine with me. Can anyone advise me of the steps and possible pitfalls involved in this.

Many Thanks,

 

[j26]

Go to a solicitor.

You need to convey or transfer the property to the other person, and would also need the bank to release you from the mortgage. There are also side issues such as who provided the deposit and would you be entitled to any share of the equity, although this is unlikely in a falling market. There's also the possibility of stamp duty, so you are best off getting competent advice on it.

 

[lozz]

Thanks J26,

Is it difficult to get your lender to release you from the mortgage (ebs), also would I be entitled to any of the mortgage repayments made so far??

Thanks,

 

[dazza21ie]

Is it difficult to get your lender to release you from the mortgage (ebs), also would I be entitled to any of the mortgage repayments made so far??

The lender will have to be satisfied that your partner will be able to repay the mortgage on his own so it is almost like applying for a mortgage from scratch. You will have to negotiate with your partner as to how much you get for transferring over your share. Ideally you would look for a sum that is equal to half the value of the property less the mortgage (presuming no negative equity).

 

[PM1234]

If your partners multiples are enough to make him eligible for the total mortgage, the lender will release you from the mortgage and let him take it over. As Dazza said, its much the same as taking a First Charge over the property. The title deeds will then be transferred into his sole name. The lender will make it a condition of his offer that you will no longer have any beneficial rights in the property and (depending on if there is equity on the property and if he decides to take a larger mortgage than the current one) may include a further condition that a certain sum is paid to you. Any such conditions will be on his new offer letter and for him or his solicitor to comply with prior to drawing down the new mortgage.

It was your home also so the repayments made to date wouldn't usually come into the agreement. You will, however, need to agree a fair amount between you if there is equity in the property. This might already be taken care of, if you drew up an agreement prior to buying the property?