Oh Fell. It Seems To Have Triggered...
Body & Soul2 mins ago
I have what I thought was a simple problem. I have been seperated for two years and am just finalising arrangements for a divorce (amicable). The agreement is that I pay my wife a fixed amount of money when my son reaches the age of 18 (he lives with me and is currently 16 years old). At the moment I have a small endowment mortgage which will end in three years time and is in both mine and my wifes name. Part of the settlement is to remove my wifes name from this mortgage which of course makes sense and we are both happy with. Now to the problem! Earlier this week I had an appointment at the building society to discuss this, and was advised that the only solution was to re-mortgage, something I am not keen to do. Is this correct? why can I not simply remove my wifes name from the agreement? I am concerned that I was just being subjected to some sales talk rather than actual advise! If it should be possible to do what we want to, can anyone advise the procedure (I think there may be some forms to complete regarding land registry etc.
As I say there are no issues with amounts of money, claims on the house or anything (this has all been agreed via our soliciters). The only issue is how to simply remove my wifes name from our mortgage without having to actually take out a new one.
Thanks
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Your solicitor should have advised you what to do in this situation. Failing that you should have been advised to speak with an independant financial advisor, but this is still an option. remember the endownment is a separate product in most cases, I know of people who have an interest free mortgage and dont have an endownment because in theory they will simply sell the house just before the capital needs repaying.
Get in touch with an IFA, they should be able to do all the leg work for you.
I have kept a copy of an AB post from sometime ago which turned out to be spot on for me and might be of help to you;
It is not possible to pick up a pencil rubber and erase a name on a mortgage. The name(s) Entered on the Land Register have to be changed. The contract of mortgage in joint names is ended when one person withdraws from that contract. A new contract (mortgage) comes into existence ( either with the existing mortgagee or a new one) and the mortgagee has to cancel the old charge at the Land Registry and enter a new one. You have to decide how to hold the property, that is to say whether as sole proprietor or in joint tenancy or tenancy in common (with a relative or someone else). The Revenue regard this as a gift by your ex to you and have to be notified - as it is divorce the IHT 7 year rule will apply. The company with whom you are remortgaging will insist upon doing all of your work in this as well as their own calling it "Transfer of Equity", for which they will make a re-registration charge of about �200 + VAT (the Land Registry fee is �40 which is included in this). Your ex will have to sign several of the forms, including the one for the Revenue. Some mortgagees insist that the ex must appoint there own separate solicitor, so be prepared for this (there is a legal reason for this which is too long to explain here). As no money is changing hands there is no Stamp Duty or other tax of any sort to pay beyond the VAT on solicitors bills.
Maude Tue 20/01/04
I have now heard back from the building society and it does not look good.
They have said that - quote "I have what is called an 'Open Plan Mortgage', which is regulated by the 'Consumer Credit Act' and therefore is Non Transferable"
I am not to sure what this means? But it looks as though a remortgage is the only option HELP!
Can anyone point me to the type of product I need? What is required is �25,000 for three years (I have an endowment which will just about cover this amount in 2007). I understand that there may well be an early settlement penalty, but equally I cannot afford the large costs for setting up a new mortgage, so may benefit from one of the cash back deals. Suggestions as to the cheapest option overall would be great (I do know that I will have to take some sort of professional advice at some point).
Cheers