I am looking for some explanation of the conveyancing process.
Currently I am joint owner of a house. There is a joint Mortgage on the property. As part of the settlment I will buy out my wife''s share in the property so that it will then be in my sole name.
I am confused about what happens with the solicitors, the Mortgage lender and the Land registry. I have cash which I can use to pay the settlment and possible the mortgage
I have two options and do not understand how either works so would appreciate any help.
1) I pay the cash settlment to my wife and pay off the mortgage.
2) I pay the cash settlment to my wife but keep a mortgage in my sole name.
How do I do this and how do I need to engage with solicitors, Land registry Mortgage lender. Do I pay the cash direct or does it go through my Solicitor?
Firstly, if you have reached a settlement with your wife, ensure that it is recorded formally in an order. You don''t want her coming back for a second bite of the cherry at a later date. This happens more often that you might think.
Second;y, it is possible to purchase a person''s beneficial interest by paying out their share of the property. However, the mortgage lender does not have to agree to release your wife from the mortgage liability. In order to do this you will have to seek the consent or your mortgage lender and obtain a transfer of the mortgage into your sole name or you can obtain a new mortgage, subject to you meeting the necessary lending criteria.
The actual transfer of the property is unremarkable and involves signing a transfer and submitting this to the Land Registry. The only difficulty is that the person who is to retain the property i.e. you, is usually expected to deal with the transfer of the property.
My advice: get a solicitor to do this for a fixed fee - most solicitors do. It should costs around £350.00 + VAT plus disbursements.
If you intend to redeem the mortgage you can pay off your wife and undertake to indemnify her for the mortgage liability whilst you arrange for the redemption. You need only attend to the actual transfer of the property from joint to your sole name.
I should repeat though, you need to have this agreement recorded formally.