Mortgage question - breaking up with girlfriend (co-owner)

deadl0ck

Not sure if this is the best forum for this question - if not please let me know...

Anyhow - here's the question:

I bought a house with my girlfriend and we're now splitting up, and I'm keeping the house - where does this leave me if I tell the bank ? Will they want extra security or more info from me, or could they try and take the house or what ??

No repayments have been missed and I can easily afor the mortgage my self - any ideas/suggestions as to how I should preceed with this ?

Also, myself and herself are on excellent terms so there's no trouble getting her to sign over her half to me etc.. so any suggestion would be great !

Thanks all.

Borzoi

I suspect how th e bank treats it will be largely dependant on your relationship with them.

Unfortunately you will have to tell them as they hold the deeds, and to get your ex's name will require the deeds to be changed.

All the best tho

spongebob

They will not bat an eyelid.

The problems are normally caused by

1. The exit terms (must you buy her out by end May or something)
2. The valuations at which this is done, whose valuers , best of 4 valuations ?
3. Lawyers sending long letters in the absence of real communications.
4. lack of a written agreement covering this eventuality when yiz bought , thereby inviting a lawyer to get rich as they invent a system for 1. and 3.

So

a) have you agreed a buyout and a closing date for the deal ?
b) can you raise that money ?
c) if not you must sell as the dissolution of the joint mortgage is the only way you can get your money out of it if the bank will not fund b)
d) alternatively there may be no fixed date set as per a)

Lesson to all.

Write out a pre-mortgage deal in case this happens to you.

M

deadl0ck

Why can't she just transfer the property to me ?
Do I have to buy her out ??
And stamp duty ? Are you serious ?

seamus

Regardless of how good the terms are between you and your ex, make it clear to her that this has to all be done professionally, and through solicitors.

Taking it on her word that "Ah yeah, she'll sign the papers next week", etc, can end up souring what you have left and making the breakup harder than it already is.

If you do it formally and professionally, and make it clear to her that it won't be done any other way, then it makes life easier and less painful for all.

My own brother is currently doing something similar, and it's a little slow getting sorted. Although it may not be her fault specifically, because they didn't do any formality it adds tension.

spongebob

Originally posted by deadl0ck

And stamp duty ? Are you serious ?

Yes. Any deed change requires stamp duty (maybe not the full whack , lower rate) .

Remortgage with another bank requires stamp duty too, see a remortgage pack for a full explanation about it as it is at the current full value of the house or the mortgage (not sure which) .

A Solicitor has to do this stamp duty stuff for ya so Solicitor will be involved one way or another no matter what...at some stage.

M

Victor

Also be aware of the Family Home Protection Act. http://www.irishstatutebook.ie/ZZA27Y1976.html

spongebob

It only applies if there are sprogs Victor. How d'ya think that we got the McDonalds dads and not the McDonalds mams as wotsit from the Irish Times has been pointing out for years....correctly may I add.

In a nutshell deadl0ck , if you two(or she) have(has) a sprog(s) then simply leave the house now. Thats how much of a right the father has in practise. Nor can the father get his half back of the house back till the sprog is 18, even if it is not your sprog but hers.

Her lawyer will point this out to her anyway if there are sprogs.

M

deadl0ck

No spogs. At least that simplifies it.

slave1

No spogs. At least that simplifies it.

you'll have to wait a month or so to get he all clear on that one;)

halkar

deadl0ck at least you weren't fool enough to marry or else you would get nothing and still pay for the house
Anyway, go to your bank and talk to them, buttomline is you have to buy her out and this is almost same as applying for a new mortgage. They can check your income aginst the amount you are borrowing as previously house was bought on 2 names, though they will go easy on you as you already are the owner.
All the best.

shoegirl

Originally posted by deadl0ck
Why can't she just transfer the property to me ?
Do I have to buy her out ??
And stamp duty ? Are you serious ?

1. She can if she really wants to
2. If she has made contributions towards the mortgage she is entitled to either her money back or a share in the property.
3. As you are not married there may be stamp duty payable (sorry but you should have checked this out when taking out the mortgage).

deadl0ck

So - you're saying she can just transfer the property to me ?
She has no problem with that as I'm transferring our property in Sweden to her

How would I go about this - getting a solicitor to do up a formal contract between us where she transfers her half ?

Thanks !

Victor

See if the interests can be transferred for a nominal sum (€1)