To remove your ex-partner from a joint mortgage and ownership of the property can be a complicated process, so here we have broken down the stages to help clarify the process.
1. Settlement amount. The ex-partner leaving the property may be entitled to a share of the equity within the property, so first of all you need to confirm how much they are legally entitled to and confirm how much they would accept to be removed from the property.
2. Review your credit profile. Mortgage lenders mainly use Experian or Equifax, so have a look at your credit report and make sure the data is correct and where possible resolve any credit issues.
3. Speak to your existing mortgage lender and ask if they would be willing to remove your ex-partner’s name from the mortgage.
4. Speak to a mortgage broker to explore your mortgage options. The main checks your broker or your existing lender will do is look at the equity that will be left within the property after settlement, your affordability long term, and your credit profile.
5. Once your mortgage lender has completed all of their underwriting checks, they will issue a binding mortgage offer. This will be sent to your solicitor who will act on your behalf.
6. Your ex-partner will have to get Independent Legal Advice where they will be informed of their legal entitlement and they will have to complete and sign paperwork agreeing, to the settlement arranged. In many instances, the ex-partner agrees to a settlement figure initially, but when they are informed by their solicitor to what they are entitled to, it could be potentially a lot more, than expected and this can make the whole transaction break down, it is very important that both parties seek legal advice from the start.
7. Once your ex-partner has signed acceptance to be removed from the property, your solicitor will arrange a completion date where the existing mortgage (if any) will be settled and the land registry confirming property ownership will be updated to solely your name.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.