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ukfamilysolicitor
ukfamilysolicitor, Solicitor
Category: Law
Satisfied Customers: 848
Experience:  Qualified Solicitor Currently specialising in Family. Also experienced in Corporate, Employment, Civil Litigation, Debt Recovery
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My question is related to title deeds and joint mortgages.

Resolved Question:

My question is related to title deeds and joint mortgages. It is complicated.

There is 2 properties involved and the title deeds will be exchanged by an Order but the mortgages remain in joint names.

What happens to the mortgages if they can't be transferred into sole names?

Submitted: 1 year ago.
Category: Law
Expert:  ukfamilysolicitor replied 1 year ago.
Hello
Thank you for your question.
Mortgage companies are not bound by court orders so there are a few things you need to consider.
When houses are transferred Form TR1 is completed and sent to the Land Registry to change the title deed. It is the title deed which states who actually owns the property. A Lender could block such a transfer and in reality there is little a Judge could to prevent this. It is therefore advisable to speak with the lender to see if they will block such a transfer.
You also need to ask the Mortgage lender if they would release you from the mortgage. They may be unwilling to do so. The mortgage company could pursue you if there was a default. You seek that the other party indemnifies you which means that if you to pay then you can pursue the money back but in reality if they can't pay the mortgage they may not have the means to repay you.
Best to have a chat with the lender before matters are finalised. The lender may agree to release you once the other person has established they can manage but this may take some time.
Kind Regards
Caroline
I would be grateful if you could kindly rate my answer. I am new to this service and positive feedback is gratefully received.
Expert:  ukfamilysolicitor replied 1 year ago.
I would be grateful if you could kindly rate my answer.
Customer: replied 1 year ago.

hi,

1) firstly is this UK law?

2)what happens if my name cannot be removed from the flat (this one transferred into ex's name - who went bankrupt in dec 2012) once the total mortgage is paid? Also if if he can't pay it will then be repossessed - what happens if a) there's equity?

b) no equity?


c) could the flat mortgagors say that i have to sell the house to fulfill the debt as i am liable for the flat but not on the title deeds?

Having the title deeds in my name doesn't necessary mean it will be mine?

I'm trying to find out if I can't get his name off the mortgage, where does that leave me with the house as the title deeds will be in my name?
Expert:  ukfamilysolicitor replied 1 year ago.
Hello
Thank you for your response.
Response below - tried to stick to the order of your questions.
Your agreements with the mortgage company is binding in the UK. They have the first charge over the property so it is basically theirs.
If the mortgage is paid in full then they are satisfied - you can do what you want and you don't need their permission.
If they wont remove you, house is repossessed and is later sold, it will often be at an undervalue. If there is no equity - they could pursue you for any short fall.
Having the title deeds just relates to the legal title. The beneficial title could be different.
If he's on one of the mortgages but that house is by court order wholly (legally and beneficially) yours - then it is as per the order made.
Kind Regards
Caroline
Customer: replied 1 year ago.

hi,

The court order is my ex gets the flat and I get the house. So exchange the properties. Each of us have to endeavour to change the mortgages into sole names. If neither of us can remove each others name from the mortgage.

In long term once the mortgage is paid off totally. Legally where does that leave me with his property? Will it effect me only if he can't pay the mortgage and it goes to repossession? Otherwise the flat is his as the title deeds have been already transferred?

Will he be able to remove my name as he declared bankruptcy in 2012?

Expert:  ukfamilysolicitor replied 1 year ago.
Hello
Thank you for your response.
The court has chosen the words 'endeavour' as it recognises it's sometimes not easy to remove names from mortgages.
You are correct the issues will only arise if you can't remove names and the other person defaults.
He might struggle to remove you with a recent bankruptcy.
Kind Regards
Caroline
ukfamilysolicitor and other Law Specialists are ready to help you
Expert:  ukfamilysolicitor replied 1 year ago.
I would be grateful for positive feedback

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