Divorce Settlement and BTL Mortgages

Posted on 18 August 2012 by pam


i am getting divorced and trying to sort out the fiancial asppect,, we have several properties in joint names as buy to let can the court assign some of the properties over to my ex in a settlement the mortgage is being covered by the rental payments, my ex has a very littlle income.

Pam

I am not able to give legal advice and so I have passed your enquiry to our in house solicitors, Rollingsons.  They will be in contact with you regarding what the court can and can't do.

With regards to the BTL mortgages your lenders will normally follow the wishes of any court order, but you will still have to make a formal application to transfer the mortgages to your ex.  There is normally a form to complete and an administration fee to pay.  It is possible that your lender will not agree to release you from your mortgage covenants because your ex has very little income and despite the rental covering the mortgage payments you could end up not being a registered owner, but still subject to the terms and conditions of the mortgage.  I recommend that you get independent legal advice and talk to Rollingsons about this possibility.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.