Expert: Jessica Bryan - 9/18/2008

Question
Dear Ms Bryan,

Me and my ex boyfriend took out a mortgage on a property 2 years ago on the basis of 70% to him 30% to me. the property is currently worth around £130,000. we took a mortgage of £126,000. I would like to come out of the ownership and transfer to his new partner. What i would like to find out is. What am i entitle to? e.g. does my partner have to buy me out of 30% of house value or the mortgage amount paid. I'm not sure what processes take place or where to start without loosing out. I would be most grateful if you can advise me to the best of your knowledge within this sector, with taking into account the rules and regulations of transfers.
Many thanks
Regards
Crupa

Answer
Dear Crupa;
Your ex boyfriend should buy out your share in the amount of the 30 of the home's total value today.  In order to do this, you should have the home appraised and then calculate what 30 of that value is that he should pay to you.  This should cover your mortgage obligations as well as any cash you may have contributed in the purchase and any equity that may have accrued. Essentially you and he are selling the home to a new buyer--him. Next, you should go to an attorney and have the title transferred via a legal document to your ex.  You will have to pay off the entire mortgage (each will contribute their share to this) and finally transfer the title to him. Most lenders want to do a whole new loan based on his qualifications only.  That is why you can't just assign the home and mortgage payments to him in the first place. As it stands now, if he bought out your interest in the home you would still have financial obligations to the lender and if he defaulted on a payment you would be obligated.  That is why you should always consult the lender when releasing title hold to a property.

If you have any questions on how to do this you should consult the attorney.

~Jessica Bryan