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Changing name on a mortgage

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  • 24-01-2010 11:50pm
    #1
    dossie01
    Registered Users Posts: 22 ✭


    Hi,

    I'm new to posting threads so I do hope this works. I currently own a house with my ex girlfriend. We broke up a good while ago, and I am now in another relationship. Basically I want to change the name on the mortgage form my ex, to my present girlfriend. Is it as straight forward as that? My girlfiend has a steady job with a decent income. Will they just assess her income etc, or would we have to re-apply together to take over the mortgage? I know I will need legal advice no matter what, just want to find some information before I start with the legal side. Any help would be appreciated.

    Thanks

    Dossie01


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    #2
    Victor
    Registered Users Posts: 78,310 ✭✭✭✭Victor


    Its a lot more complicated than that. Its not just a change of name, its a change of responsibilities. If the bank feels your new girlfriend is a greater risk, they may be slow to take her on and may charge more.

    One important factor will be the % equity you have and how much the bank is exposed.

    I imagine, in practice, that you wil be dealing with a new mortgage, not an amended one.

    Make sure all parties have proper legal advice - you don't want it challenged years down the road.


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    #3
    nice1franko
    Closed Accounts Posts: 2,300 ✭✭✭nice1franko


    AFAIK you can't change a mortgage in that way. You need to re-apply for a new one.


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    #4
    dossie01
    Registered Users Posts: 22 ✭dossie01


    just as I thought, although my new partner has a decent job and great credit history, mine is not so good, i was self employed for a year, and I have to clear a credit card, so re applying for a new mortgage wont work, mad to think even though I already am on the mortgage.

    My ex wants nothin to do with the house, if only it was as straight forward as being able to change names

    Thanks for the help though, much appreciated


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    #5
    antoinolachtnai
    Registered Users Posts: 9,776 ✭✭✭antoinolachtnai


    The problem is that the house might now be worth less than the value of the mortgage. If it is worth more than the value of the mortgage you should be able to sort it out without too much trouble.

    But this will not be simple! There are financial and also stamp duty implications. Professional legal and financial advice time.


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    #6
    dossie01
    Registered Users Posts: 22 ✭dossie01


    Just as I thought,

    I will contact my solicitor and get some advice, i dont want to go askin the bank because as far as they know, me and my ex are livin there. dont want to rock the boat and them usin some clause to catch me out!

    Hopefully there will be a straight forward way, although the house is well in negative equity, to the tune of bout 40 to 50 k


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    #7
    testicle
    Closed Accounts Posts: 5,430 ✭✭✭testicle


    Does your ex not have a claim to the house, or at least half of it?


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    #8
    dossie01
    Registered Users Posts: 22 ✭dossie01


    she would, but because its deep in negative equity, she cant really get half of nothing! easier for her to just walk away than sharing 40 odd k of negative equity.

    me new partner wants to take over the mortgage with me, cant believe its so complicated, but sure what can ya say, if i was a developer i could do what I want!


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    #9
    Victor
    Registered Users Posts: 78,310 ✭✭✭✭Victor


    dossie01 wrote: »
    she would, but because its deep in negative equity, she cant really get half of nothing! easier for her to just walk away than sharing 40 odd k of negative equity.
    Shouldn't she be taking some of the negative equity?

    Or maybe you don't want to go there.


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    #10
    dossie01
    Registered Users Posts: 22 ✭dossie01


    to be honest, id rather just get her off the mortgage, no point in 2 of us sharin the negative equity. I want to live there for a few years, not lookin to sell anytime soon, so will pan out eventually!

    Off to the solicitor for me!


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    #11
    antoinolachtnai
    Registered Users Posts: 9,776 ✭✭✭antoinolachtnai


    Your girlfriend will also need legal advice of her own.

    It is not what you want to hear, but it is very unlikely your girlfriend would be able to get a solicitor to act for her. If she takes your ex's place on the mortgage, she will be taking over the negative equity. There is no benefit to her in doing this, the only person who benefits is your ex. If the solicitor did this conveyance for your girlfriend, the solicitor would be acting against your girlfriend's manifest best interests, and would be leaving him- or herself open to being sued or even struck off.

    Equally, the banks are likely to be reluctant to release someone from the mortgage in these circumstances. They might be convinced if someone came up with the cash to cover the negative equity, but it does not sound like that is an option. Even then the bank would be reluctant.

    Much the same is true if you tried to simply get her name taken off the mortgage and deeds. The bank would have no benefit from this because they would lose their right to pursue your ex and they would not get anything extra. The solicitor would also be acting against your interests if he helped you complete the transaction.

    So listen to your advisers, but I do not think they will be able to help.


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    #12
    How Strange
    Registered Users Posts: 6,339 ✭✭✭How Strange


    From first hand experience it's not just a paper exercise. I've no experience of removing one person from a mortgage but you'll have to remortgage and put your gf on the deeds. She has to get life assurance. Then the deeds have to be changed and go to land registry and then the revenue comm have to be notified and clear it. The process took us over 18months.

    Your gf would be off her rocker to get onto the mortgage as she's taking on someone elses negative equity and losing her first time buyers status into the bargain.

    I'd say sit tight, agree between you that she either pays towards the mortgage in which case she has a claim on all the money she has put into the property or she pays into a separate fund i.e. holiday fund in which case she has no claim if you break up in the future. That might be a bit general but afaik it's true.


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    #13
    BC
    Registered Users Posts: 1,326 ✭✭✭BC


    My boyfriend tried to remove his brothers name from the mortgage - its not that straightforward. You have to reapply for the mortgage and the application may be refused. Turned out to be too much hassle. The bank advised to leave as is until such time as the house is to be sold.


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    #14
    dossie01
    Registered Users Posts: 22 ✭dossie01


    hi guys,
    ive just heard of a deed of variation, this is the Uk term, where my partner could legally sign the house over to me, which she will be willing to do, does this skip around the whole re mortgage thing?

    If i then married my current partner, wouldnt she then legally own half of what I do? Anyone have any experience of this?


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    #15
    Jo King
    Banned (with Prison Access) Posts: 2,139 ✭✭✭Jo King


    The variation can only be done with the approval of the mortgagee i.e. the bank. You are obliged, under the terms of the mortgage, to inform them of any development which might affect their security. You are walking into a minefield trying to do what you are proposing.


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    #16
    Bluefoam
    Registered Users Posts: 7,722 ✭✭✭Bluefoam


    Your new partner will probably be liable for stamp duty too. Does your original ft have no interest in the property? She could refuse to take her name off the mortgage and then claim her half of the value at some time in the future... whether she contributed or not. It's a very dangerous situation...


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    #17
    How Strange
    Registered Users Posts: 6,339 ✭✭✭How Strange


    dossie01 wrote: »
    hi guys,
    ive just heard of a deed of variation, this is the Uk term, where my partner could legally sign the house over to me, which she will be willing to do, does this skip around the whole re mortgage thing?

    If i then married my current partner, wouldnt she then legally own half of what I do? Anyone have any experience of this?
    That's the form my OH used to get me on the mortgage. Aside from removing your ex from the mortgage, you still have to remortgage, deeds have to go to land registry and then your solicitor is obliged by law to inform the revenue comm even if it's just you on the mortgage. They will decide whether or not there is any stamp duty liability and if you put your gf on the mortgage she will lose her first time buyers status. Seriously, this took us over 18months and probably €800 (we haven't got the bill yet!) to complete.

    As I said before, your gf is taking on a pig in a poke here. It would be more prudent to leave things as they are, sort out that property as a separate matter and then your gf retains her first time buyers status to buy a decent property at an affordable price in the future.


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