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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
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Experience:  English solicitor with over 12 years experience
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Rather a complex question relating to a remortgage: I own

Customer Question

Rather a complex question relating to a remortgage:
I own a house with a interest only mortgage which expires in 2.5 years time, with approx £140000 equity in property need to remortgage to repayment.
I am to old and don't have a great credit history so cannot get a mortgage
My husband who is considerably younger with a good history and job could but have been told he cannot remortgage in his name as it would perceived as a distressed sale if we split up I could refuse to leave which would then become a property with a sitting tenant if my husband defaulted.
Is this correct is there any way round it.
Many thanks
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.

Hello,

Yes, there is a way around this and the solution is quite commonly used.

You may sign what is known as a Deed of Consent and Postponement which is basically a statement that is required from you (the non owner) in occupation of the mortgaged property. By signing the Deed, you confirm that you understand that the mortgage company's interest in the property is the primary interest and that you understand that you will not be able to claim any interest in the property before them.


The Deed does not mean that you cannot claim any interest at all, it means that you agree that your interest can only be claimed on the equity in the property after the mortgage company's legal charge. You would therefore be saying that you understand that you will not get your money back without their mortgage being paid off first.

 

All these lenders typically grant mortgages if a Deed of Consent is signed subject to their other requirements being met:

 

http://www.cml.org.uk/cml/handbook/englandandwales/question-list/643

 

You may wish to first transfer the deeds and mortgage in your husband's name and then take it from there.

 

To protect your equity against your husband, you may ask for a declaration of trust to be made specifying your contribution to the equity and how much you should get and how much your husband should get of the equity.

 

All the best

 

Customer: replied 3 years ago.

UK Solicitor JA only


 


Thank you for your advice but I don't know if I explained properly the biggest issue apparently is that I would be viewed as a sitting tenant who they can't evict if he defaulted also if my husband remortgaged and took over the current mortgage this is viewed as a distressed sale.


 


I cannot transfer my mortgage to him as the company I am with is not doing anymore lending and it wouldn't solve the problem if he took over my mortgage as interest only.


 


Kind regards


Ruth


 

Expert:  UKSolicitorJA replied 3 years ago.
You would be an occupier but not a sitting tenant as you were never a tenant and would not be paying rent.

See here for the type of consent atop that you could sign as an occupier

http://www.investecmortgages.co.uk/content/dam/investecmortgages-co-uk/documents/Investec%20Occupier%20Consent%20and%20Legal%20Advice%20Waiver%20IM.LE.3002.001.pdf

Perhaps you could look into a transfer of equity.

I suggest you appoint a good conveyancing solicitor to provide you with proper assistance as it seems that you have not been advised correctly and properly.

Can I clarify anything further?
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience: English solicitor with over 12 years experience
UKSolicitorJA and other Law Specialists are ready to help you
Customer: replied 3 years ago.

thank you very much can you recommend any experienced conveyancing solicitor in the Guildford area or are you not allowed to


Kind regards


Ruth

Expert:  UKSolicitorJA replied 3 years ago.
I am afraid I am not allowed to recommend any particular solicitor although I used to work in Guildford at one point :-)

I would refer you to the Law Society find a solicitor search facility.

All the best and please remember to leave feedback.
Customer: replied 3 years ago.

Hi following on from our previous conversation and spending some time with a financial advisor it has come to light that I perhaps didn't make it clear that I am the sole mortgagee on this current mortgage and that the only possible solution is an undervalue sale to my husband would appreciate your opinion on this


 


Kind regards


Ruth

Expert:  UKSolicitorJA replied 3 years ago.
Yes, this may be done as well.


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