Equity Transfer between 2 invididuals

hello,&#160; As part of a divorce agreement, I need to transfer a property that is in my sole name to my ex-husband's sole name.&#160; There is no payment involved; he will take on the existing mortgage.&#160; Effectively, I will be gifting him the property.<br> <br> The solicitor is claiming that an Equity transfer can only be done if it's removing or adding an individual from/to joint ownership, as long as one of the initial owners remains.&#160; So it can be from 1 person &gt; 2 people or from 2 &gt; 1.&#160; Otherwise it's a buy and sell.<br> <br> Is this correct?<br> <br> Many thanks.

Hello Isabel - a transfer from 1 to 1 is acceptable but the issue will be with the lender and their requirements as to how the transfer can take place subject to the existing mortgage. Perhaps they are referring to the lender requirements as a 1 to 1 transfer is possible<br> Where the property is being transferred subject to the mortgage, and the new owner is taking that mortgage on, the lender will invariably require some specific wording to be included. Again something for the lender to cover off for you both

perfect; thank you for your quick answer.&#160;

hi Adam,&#160; apologies for the follow up question.<br> <br> The existing lender is refusing to make this transfer on the basis that it's 'not their policy'.&#160; My ex-husband is therefore getting a mortgage with another lender.&#160; Does this change anything?&#160;<br> <br> The TR1 will mention the divorce settlement and that the only consideration value will be the mortgage amount, but does this now become a buy &amp; sell ?&#160; The new lender seems to think so....<br> <br> thanks.

Hi Isabel - lenders offer a wide range of mortgage products and not all of them will 'fit' your scenario, hence their response<br> It does change things but only in so far as the conveyancing work to be done alongside the transfer. The old lender will need to discharge their legal charge and a new mortgage secured with the new lender.&nbsp;<br> In essence it's more like a sale/purchase between the two of you with the old mortgage going and a new one appearing - they may still refer to it as a transfer of equity but those are simply 'words'&nbsp;<br> You need to rely on the new lender first and then the conveyancer to guide you through what they require. The conveyancer will sort out what 'consideration' needs to be referred to and how that impacts.<br> Once done they then apply to update the register with us.

Thank you but in this sentence<br> <em>In essence it's more like a sale/purchase between the two of <strong>you </strong>...</em><br> <br> did you mean to write 'them' instead of 'you'?&#160; ie, it's a sale/purchase between the lenders.

Isabel - no as the lenders don't sell/purchase as they don't own the property. They secure their loan against it. <ul> <li>The property is in your sole name with a mortgage secured against it.&#160;</li> <li>You need to transfer it to your ex-husband but the existing lender won't allow that to happen as their existing mortgage does not allow that to happen&#160;</li> <li>Your ex-husband has found a new lender who will secure a mortgage in his name against the property</li> </ul> If that's correct then it mirrors how a sale from say you to me would work so you and your existing mortgage disappear and the property is transferred into the new name with a new mortgage secured

hi Adam,&#160; that's now very clear and thank you v much for clarifying something that no solicitor or lender has been able to explain to us until now.<br> <br> Thank you for your prompt and clear responses.<br> <br> Many thanks.