How to Remove Your Name From a Mortgage After Divorce

Are you recently divorced and wish to remove your name from a shared mortgage? Removing your name from a joint mortgage after divorce is common, allowing you to cut all financial ties to your ex-spouse. 

This means you can protect your credit and finances while stepping back from joint financial responsibility with someone you're no longer married to. Read on to learn how to remove your name from a mortgage after divorce. 

Is it Possible to Remove Your Name From a Mortgage After Divorce?

Yes, it’s entirely possible to remove your name from a mortgage after divorce. However, it isn’t as simple as it sounds. Both parties (you and your ex-spouse) must consent to your name removal, and your mortgage lender must approve the decision. This process is referred to as a transfer of equity.  

What is Transfer of Equity?

Transfer of equity is the process of adding or removing someone to or from the title deeds of a property. Transferring equity is common when circumstances change in relationships, such as divorce. 

Transferring equity should be considered carefully, as it will change the ownership status of your property. However, if you’re divorced from your ex-spouse, the likelihood is that transfer of equity will benefit your current circumstances, allowing you to step back from financial obligations to your once-shared home. 

Managing a Joint Mortgage After Divorce

After a divorce, a joint mortgage remains the same. Lenders care most about repayments being made on time, not so much about your divorce. Despite divorcing, both you and your ex-spouse are still legally responsible for the remainder of your debt if you decide to keep a joint mortgage after divorce.

So, although you may not be married anymore, you still own a property together until you remove your name from the mortgage. 

Removing Your Name From a Joint Mortgage After Divorce: Step-by-Step 

If you’ve decided to step back and remove your name from a joint mortgage, you’ll essentially be transferring equity to your ex-spouse. This will then make them the sole owners of the property, meaning you won’t be required to make any further repayments. If you’re unfamiliar with the process, follow our step-by-step guide below. 

1 - Communicate With Your Ex-Spouse 

Divorce can be tough, but it's important to communicate properly with your ex-spouse and come to a mutual decision, such as removing one of your names from the joint mortgage. While there are several other options regarding your property after divorce, transferring the mortgage to one party is common. 

2 - Inform Your Mortgage Lender

Your lender must be informed if you're removing your name from the mortgage. This will help them ensure the remaining party can continue paying off the mortgage alone with no affordability struggles. Although you may want to remove your name from the mortgage quickly, affordability, credit, and employment checks can take some time. 

3 - Seek Professional Advice

Seeking expert advice is essential while removing your name from a mortgage. While you may feel as though you understand the process and implications of removing your name from a mortgage after divorce, mortgage advisors and solicitors can offer necessary guidance and support.

4 - Arrange a Valuation on Your Property

A property valuation is necessary after a divorce, even if you're certain that you want to remove your name from the mortgage. A valuation determines the equity of the property you currently share with your ex-spouse, which helps figure out how much one person owes the other. 

Additionally, a property valuation allows lenders to assess whether or not the soon-to-be sole borrower can not only afford the remaining repayments, but also has no issue taking full responsibility for paying on time.  

5 - Apply and Finalise Transfer of Equity 

Once you’ve finalised the decision to remove your name from the mortgage, informed and gained approval from your lender, sought professional advice, and valued your property, you can apply for a transfer of equity.

This legal process removes your name from the mortgage and transfers full property ownership to your ex-spouse. Solicitors typically handle the main legalities involved with paperwork and informing the Land Registry. 

How Much Does it Cost to Remove Your Name From a Mortgage?

Removing your name from a mortgage comes at a cost. There’s no definite answer on how much it’ll end up costing you to remove your name from a mortgage after divorce, as fees can vary depending on how much legal advice you require and whether complexities arise during the process.

However, expect to pay over £500 for all combined fees involved in the name removal process. 

Tailored Mortgage Advice at Bell Financial Solutions 

At Bell Financial Solutions, we have a team of trusted mortgage advisors on hand to help you understand the process of removing your name from a mortgage after divorce. We can help both you and your ex-spouse, presuming they've taken on the mortgage independently. 

Our team can assess your circumstances, helping you find the most affordable options for you and your ex-spouse to consider. We can also discuss potential alternatives, such as remortgages and one party buying the other out. With us, you can expect tailored, award-winning services as you navigate managing your shared mortgage after divorce. 

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For more information on how we can help, contact us today 

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