Hi there
Me and my ex partner split 6 months ago, she decided to stop paying the mortgage while the place was up for sale, since then the property hasn’t sold I have been paying for all expenses and trying to “buy her out” or take over her interest in the loan.I havnt been able to get an answer as to how the process works
I simply need her name off the title of the house, is there a way without writing a new loan or having to go to court. She has agreed to all terms due to the value of property dropping below mortgage.Any advice on this would be great, Cba have been hopeless this far.
Cheers
PaulIf you have kids the settlement, even an amicable one, must go through the family court.
If there are no kids, the details of your property settlement (all assets etc) can be done thru solicitors unless the parties disagree & want to fight it out in court.
Hi Paul,
Sorry to hear of your circumstances.
Re the loan / mortgage, unfortunately this happens all to frequently, and cannot always be resolved – the main issue I have seen is that the remaining partner has to be able to demonstrate loan serviceability without hardship and still meet all the other cost of living. THis means sometimes, even if the person has been paying all the loan, they don't actually qualify for approval on another bank loan.
That said, if all is good there, there is no dodging the fact that you need both a new mortgage, and therefore a new loan – even if staying with the same bank. For legal / court ordered settlements, you will avoid having to pay stamp duty again, but the property title (ownership) has to be changed at the land titles office, and this is when you will need a new home loan & mortgage.
It concerns me if what you mean is that the house is worth less than the loan still???? IF this is the case, unless you have substantial funds to tip in, maybe it may be best to 'walk away' – which is a personal decision. If your original loan was mortgage insured (likely was if you had less than a 20% deposit originally) then all would not be lost.All the best with what you decide – and feel free to clarify anything or put in any other detail if that is not clear Paul.
Cheers
Hi Paul,
Stamp duty could be a real issue if you want to transfer the property wholly into your name. I suggest you investigate further.
Are you making the right financial decision to take over the property? Should you be seeking payment from her to cover her share of the excess of the loan over the property value and for the costs you have been paying?
pauls05 wrote:Hi there Me and my ex partner split 6 months ago, she decided to stop paying the mortgage while the place was up for sale, since then the property hasn't sold I have been paying for all expenses and trying to "buy her out" or take over her interest in the loan. I havnt been able to get an answer as to how the process works I simply need her name off the title of the house, is there a way without writing a new loan or having to go to court. She has agreed to all terms due to the value of property dropping below mortgage. Any advice on this would be great, Cba have been hopeless this far. Cheers PaulYou should really see a lawyer as there are a number of issues here.
You really need a binding financial agreement to protect yourself.
Stamp duty could be avoided as it is a transfer on the breakdown of a relationship. The same with CGT (if any), but you would probably inherit her cost base and so may have to factor in any CGT.
You would also have to be concerned about her not paying her share. Is she in financial trouble? Any possibility of bankruptcy?
Once you have worked all this out then your next steps would be:
1. Apply for finance
2. arrange for the conveyancing.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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