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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34105
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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Will a Letter of Indemnity absolve me from responsility of

Resolved Question:

Will a Letter of Indemnity absolve me from responsility of a joint mortgage. I have separated from my partner, moved out 3 years ago and not payed anything towards the mortgage since. I have been renting and now I want to get off the mortgage so I can apply for a new mortgage with my new partner but my ex is in a Debt Recover Plan and unable to re-mortgage on his own. We are in agreement to remove me, he will take full responsbility alone of any payments, arrears or actions taken should he default. I won't ask for any equity should he sell, I am turning over the responsility of the mortgage to him so I can apply for a new mortgage with my new partner. Is this possible? Will the mortgage company accept this?
Many thanks, Clare.
Submitted: 2 years ago.
Category: Family Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question
I will do my best to help you but I need some further information first
How much is the property worth and how much is outstanding on the mortgage?
Are there any children involved?
Clare
Customer: replied 2 years ago.

Hi

I/We have no children. On Zoopla the value of the house ranges from £147 to £164 I've gone for the middle of £155 at the end of last year our mortgage statement repayment value was £115 so after nearly six month I would it expect this now to be less.

thanks,

Clare

Expert:  Clare replied 2 years ago.
Hi
You can certainly sign a Declaration of Trust which will mean that your ex will be responsible for the payments and he alone will be responsible for the property.
However this will NOT release you from liability so far as the mortgage company is concerned and it is unlikely that you will be able to secure a new mortgage at a reasonable rate.
If he cannot obtain your release from the mortgage then forcing a sale may be your only option
Please ask if you need further details
Clare
Customer: replied 2 years ago.

Thank you for you reply. We have now seen a mortgage broker and we are able to keep this mortgage and still apply have another residential mortgage. Obviously the price range is reduced but this still falls in the ball park we were looking for. I think a Letter of Indemnity will cover me and make my ex solely responsible and give me the peace of mind whilst I have another mortgage. I understand this doesn't take me off the mortgage from the Lender's point of view but just a bit of insurance for me.
Kind regards,

Clare

Expert:  Clare replied 2 years ago.
Hi
What you actually need is a Declaration of Trust - but yes it will give you some security - although you will lose your share of the equity
Clare
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