joint to single mortgage

**TimberWolf** · 16 February 2012, 15:53

Don't know about the law, but estate agent valuations are usually higher than market value, so you may be quids in paying half anyway.

**kingcook** · 16 February 2012, 15:59

Originally posted by kermitt View Post

Split up with my girlfriend and renting elsewhere.

She wants to keep the property and therefore needs to transfer the mortgage into her own name.

The average valuation is below the outstanding mortgage amount hence negative equity.

She seems to think I am responsible to pay her half this amount so that I can be removed from the mortgage. However I disagree considering that it only becomes negative equity if the property is sold.

Who is correct?

Under Scottish law BTW.

I'm not sure on who is right, but you might have a problem trying to convince the bank that only 1 person should be responsible for the mortgage now, instead of 2.

**kermitt** · 16 February 2012, 15:59

Thanks.

These were estate agent valuations and I calculated the average based upon the four we received.

Home Report has not been done but only necessary when selling which is not the case as she wants to continue living there for the foreseeable future.

**kermitt** · 16 February 2012, 16:02

Originally posted by kingcook View Post

I'm not sure on who is right, but you might have a problem trying to convince the bank that only 1 person should be responsible for the mortgage now, instead of 2.

I agree, she has only just started earning since finishing her degree and has little credit history i.e. never had loans or credit cards other than being named on the mortgage and having her mobile phone contract. I wonder if this will be deemed insufficient by the lender.

**norrahe** · 16 February 2012, 16:05

Speak to a solicitor, as it sounds like there could be a lot of problems, especially in respect of the negative equity and the credit history.

The mortgage lender will insist that you do so anyway and unless she gets a guarantor, they could refuse to give her a mortgage.

**Bumfluff** · 16 February 2012, 16:49

Did you have any kind of agreement in place regarding who owned what % of the property and who paid in what ?

Not sure about Scot law but if she doesn't take on the mortgage and you sold anyway you would have negative equity between you that you need to sort. I would use that argument that you would prefer to sell than let her take on the mortgage, she can't force you to sell to her unless she takes you to court and that will be expensive. So her option is she takes on the mortgage herself and you don't pay her anything OR you refuse to let her take on the property (she will need to buy out your share) and sell the property then both of you are stiffed for negative equity.

I bought my ex out of our house and the whole thing was treated like a brand new purchase, so its not just remortgage fees the solicitors and legals are the same as if you buying from scratch.

As other said get solicitors advice before you do or agree anything.

**kermitt** · 16 February 2012, 17:39

Thanks for the replies guys.

I am happy for her to take on the mortgage as it is only a one bedroom flat which we lived in for five years.

My original plan to continue contracting was to save enough dosh for a deposit on a house and move up the property ladder whilst taking advantage of the currently less inflated prices.

So with that in mind she can take the property and deal with the negative equity and I can make a fresh start wherever I may choose be it national or international.

**Troll** · 16 February 2012, 19:55

Originally posted by kermitt View Post

Split up with my girlfriend

Any pics to share?

**Paddy** · 16 February 2012, 20:07

When a joint mortgage is taken out it is deemed that the property will eventually be sold by any one party. You will need to put the property up for sale and get a proper paid valuation by a RICS member. (cost about £500-£700) If she wants to by it; then she pays for your half if there is any equity or you pay her your share of the negative equity. I have just saved you £300.

joint to single mortgage