Divorce and Property: Removing a Partners Name from the Mortgage
A mortgage lender will only remove your partner's name from the property deeds once proof is presented that a sole income can support the monthly mortgage payments.
Once a mortgage lender agrees that divorce and property repayments are not interlinked, and a sole income can support the repayments, the lender will ask for a transfer of equity, effectively removing one partner from the title deeds.
However, divorce and property ownership is different if the property is owned by Joint Tenants. In this instance, a transfer of equity between partners is required. This includes the deposit, the balance of the loan already repaid, and any money made on the property.
So, if your property is worth £100,000 and you have £50,000 equity held in the property, a transfer of £25,000 is required between partners.
Homeowners without the savings to cover the payment can apply for a loan (more commonly known as re-mortgaging.) For this divorce and property loan to be approved, homeowners will need to provide evidence to their lender that they can pay any loan back.
If you need to get a mortgage, contact Springbok Properties. Our expert team of financial advisors would be happy to assist you.