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Transfering my shared ownership property to my ex

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Lee1999 | 13:36 Fri 15th Feb 2008 | Law
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I own 25% of a share ownership home which I brought in 1993 with my ex-wife. When we divorced the 25% of the property, which is in my sole name, was charge back by the judge until my daughter becomes 18 years. (She is currently 14). The property would then be sold and the equity split 50-50. My ex wife wants to buy me out and I am happy to let this happen. I want to advise on the steps she needs to take to make this happen. She is under the impression that she does not need to pay the mortgage as it is in my name. She is reluctant to seek legal advise due to the costs involved. Can anyone help? What steps does she need to take?

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If your ex wishes to buy you out, any mortgage will have to be in her name and the mortgage company will need to be satisfied she can make the payments. That is the only way your name can be taken off the title deeds.

Otherwise, the mortgage company will have no rights if you default on the payments - the mortgage will not be secured against any property you own.
Or, to put it another way, Step 1 is to obtain an Estate Agents valuation and agree it together Step 2 is to understand that the valuation is an asking price and that it might be sold for 5% less, so agree a discount Step 3 is to deduct the mortgage and all other costs Step 4 is to divide the surplus by 4 and round it off up or down.
Now, because there is a mortgage you must tell the lender what you are about and seek their consent. There is no other way, and the lender is not bound to agree. The lender will call it "Transfer of Equity". If they consent then because of legal reasons which I will not go into here the lender may require both of you to appoint seperate solicitors. If so, it must be accepted. Cost ? The lender will charge between �200 and �800 pounds, depending on your luck, and the seperate so;icitors if required about �250 each.

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