There are various reasons why you may want to remove someone from a joint mortgage. It could be due to a change in relationship status, for example. Here, we take a look at the processes involved, including both the legal work and changing the mortgage agreement itself.
The Legal Process
This is a fairly straightforward process when all parties are in agreement. A transfer of equity solicitor from a conveyancing specialist such as https://www.samconveyancing.co.uk/news/conveyancing/transfer-of-equity-process-3894 should be involved and can organise the legal charge between borrower and lender.
Land Registry details will also need to reflect any change. You can read more about this on the Land Registry website.
What do you need to do?
Your main responsibility is to let your solicitor and mortgage company know about your application to transfer equity. Your solicitor should send you title transfer documents and a standard remortgage pack. You should expect to pay a charge for this.
How long will it take?
If the parties all agree, then it can take just a day for the transfer to be approved and to get an application in. This can be considerably longer if there is a dispute, however, and the property may need to be sold if agreement cannot be reached.
The Mortgage
You should review any current mortgage and decide if you want to stay with your current lender or look elsewhere. It is necessary to consider the rates being offered and any repayment penalties.
The overall process is very similar to a remortgage and will involve making a new application. This is the case even if you plan to keep the same mortgage, as your lender will want to assess whoever will be on the mortgage going forward. The lender will want to know the current situation of anyone on the mortgage, including credit history and income details. You will normally have to provide proof of income and bank statements, and sometimes a revaluation of the property will be required.
Being Approved
If your mortgage is approved then you will receive the paperwork from your solicitor. Once everyone has signed on the dotted line, it will all go through. This might only take a month if everything is straightforward.
Being Declined
You may be declined by the current lender, usually because of affordability or credit score issues. There may be other lenders available, however, as criteria do differ. You should discuss your options with an independent mortgage adviser.
Transfer Deed
Whatever your reason for removing someone from a joint mortgage, a transfer deed will need to be completed.
