Transfer of Title

Posted on 28 March 2011 by Yzzy


I have a house with my ex boyfriend. We have had it together for nearly three years on a joint mortgage.

However we have been split up for nearly 2 years now and I have been living with my new partner - he owns his own house.

We did put my house up for sale but being that we bought at possibly the worst time it has decreased in value and went unsold for nearly a year.

What I am proposing to do is buy out my ex. He put down all the deposit, 12,500. He has said in the past that is all he wants back.

However I was wondering if it would be possible to keep my current partners house and let that out and put his name on my mortgage. There would be no way I can afford mine on my own.

Is this possible?

Yzzy

It is certainly a feasible idea and will depend on the rental income that your new partner can get on his current home.

I would start by talking to your ex boyfriend about transferring the property from your joint names to you and your partner and agreeing the amount that he wants back.  You can then approach the Lender and they will either ask you to complete a Transfer Subject to Mortgage application or a  new mortgage application.  Either way the Lender will want to be sure that you and your new partner can afford to take over the mortgage and once they have agreed the process will lead to your Solicitors arranging for the title of the property to be amended.  If your existing Lender declines the application you will then need to consider a remortgage to a new Lender, but beware the free 'legals' packages offered will not cover the cost of amending the title and you may be better off using your own solicitors and looking at a cash back instead.

At the same time you will need to explore the rental market for your new partners home and find out what the anticipated rental income will be.  I doubt that his existing Lender will consent to him letting the property indefinitely and would expect him to have to remortgage on to a Buy to Let mortgage.  His rental income will need to cover the mortgage payments by roughly 125%.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.

Peter

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