Divorce and getting off joint buy to let mortgags?

Divorce and getting off joint buy to let mortgags?

10:55 AM, 21st January 2022, About 2 years ago 8

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I am in the process of getting divorced and have 16 Buy to Let properties with my ex. The mortgages have been in place for a long time with great interest rates.

How easy would it be for me to come off of the joint mortgages?

It really is a minefield out there, and I keep getting conflicting advice!

Ideally, I would like a clean break!

Many thanks


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Neil Patterson

11:01 AM, 21st January 2022, About 2 years ago

Hi Lucy,

In terms of criteria for affordability, a BTL is based off rental income not earned, but there can be minimum earned income requirements, especially for portfolio landlords. Therefore, coming off the mortgages will be dependent on the rental income cover.

However, the problem is your ex will find the lenders consider it a new application and new security and so will want to move the mortgage to their current new rates. Hence, your ex may not be 100% keen on this dea.

Richard Adams

15:42 PM, 21st January 2022, About 2 years ago

It may also depend on who your lender is. Some will be sympathetic and some won't. I asked Chelsea BS to remove my wife as joint owner of a sound BTL - good rental income etc - on compassionate grounds due to her having been diagnosed as terminally ill. Had she indeed died which miraculously she did not, she would have ceased to be a joint owner anyway obviously. They point blank refused to consider the matter continuously imploring me to see their point of view needing the security. So I had to be understanding of and sorry for them rather than the other way around..


16:35 PM, 21st January 2022, About 2 years ago

I thought my position was bad with 2!
I started trying in 2012. I tried to move one into her name and one into mine, but because they've been on good rates since 2009, the lenders were 'keen' to move us onto new products at higher rates. Then there was the affordability issue, with my ex-not having a viable income. I gave up and have managed both since. I am finally selling one and hope to sell the other later this year. This ongoing association with my ex- has caused friction with my partner, and hence selling became the only option.


19:07 PM, 21st January 2022, About 2 years ago

Is there no equity in the properties? Would you not want half? Doesn't the other half of the conversation revolve around that?


10:12 AM, 22nd January 2022, About 2 years ago

You will get conflicting advice, because there are multiple ways of doing it, all of which will vary depending on equity, how many different lends are involved and how you ex wants to restructure.

If I was the "ex", I'd be looking into how to consolidate the borrowing and reduce the number of loans. It might be an opportunity/motivation for him to off load a less profitable property as a way of funding any settlement and costs.

But you do need to accept it whatever route happens, it won't be quick or cheap, and there are two parties to satisfy. I'm assuming you share the same accountant? Might worth speaking to them for ideas, they will know the financial situation best.

Sorry your relationship didn't work out.

Katy Ann

16:04 PM, 22nd January 2022, About 2 years ago

You probably need legal advice rather than accountancy advice. The first question isn’t whether you can come off the joint mortgages. The first question is how you and your ex will be splitting all of your joint assets and liabilities in a way which is fair and equitable for both of you. Achieving that will probably mean you both have to make some compromises.


16:27 PM, 22nd January 2022, About 2 years ago

Reply to the comment left by Katy Ann at 22/01/2022 - 16:04
My experience is depending on how desperate you are to end the association will dictate how much you are prepared to compromise. Rather like paying a feckless tenant to leave when he already owes you many months rent, it may be better to propose you walk away with less than you are legally entitled to.


10:18 AM, 24th January 2022, About 2 years ago

Reply to the comment left by Katy Ann at 22/01/2022 - 16:04
I would challenge that advice, from witnessing a dear friends divorce, all the lawyers did, on both sides, was consume time and money.

Lucy, if you are not happy with your existing accountant being impartial, ask your ex if he will allow another one you both agree on to look at it. Just try not to let the emotional side of the divorce cloud any decisions as it will just drag it all out and consume time and money for you both.

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