Legal advice: How do I take my ex off the mortgage?

'I would like to keep building the house, but naturally, my girlfriend is looking for her money to be reimbursed and for her name to come off the mortgage'

Getting a new letter of loan offer is important.

Dear Karen,

My girlfriend and I started building a house about five months ago.

The site was placed in my sole name as I received a gift from my father, and my girlfriend and I are both on the mortgage.

The mortgage we were approved for was €310,000 and so far we have drawn down €170,000 but now we have decided to go our separate ways.

The situation is quite amicable. However, my girlfriend contributed towards the Stamp Duty on the site transfer. I am not sure what to do. I would like to keep building the house, but naturally, my girlfriend is looking for her money to be reimbursed back to her and also for her name to come off the mortgage.

Obviously, this will delay the build and I would be anxious not to do that. What would be your advice?

Dear Reader,

This is an unfortunate situation, but it is good to hear that you and your ex-girlfriend are still amicable. It is very helpful that both of you are open to reaching a solution. 

At present, both you and your ex-girlfriend, as you have a joint mortgage, are both liable for the mortgage jointly and severally until it has been paid in full, regardless of whether or not your ex-girlfriend owns the property.

I would advise you to get independent professional legal advice before making any decisions in relation to the property and encourage you to contact your bank to inform them of your change in circumstances.

You could inquire about getting funding in your sole name, or with another member of your family.

This would allow you to pay off the existing mortgage drawn down, and remove your ex-girlfriend’s name from the mortgage. You will need to prove to the bank that you can afford the payments on your own. 

Guarantor mortgage

If you want to take over the whole mortgage but cannot afford the repayments, you can apply for a guarantor mortgage. 

This is where someone like a family member agrees to cover the mortgage repayment costs in the event you run into difficulties and cannot pay or perhaps another family member can go on the mortgage with you, for example, a sister or brother.

Your ex-girlfriend has made a contribution either directly or indirectly to the building of the house.

Usually, if one can show that one made a contribution towards the cost of the house, one can be entitled to a share in the house in some proportion to the contribution.

Dividing property after a split can be difficult. You both need to get independent advice.

I would advise listing out all the monies that you and your ex-girlfriend have spent on the house and coming to an agreement in relation to the figure to be reimbursed to your ex-girlfriend.

Obtaining a new letter of loan offer from your bank will take time and it’s best to speak with your builder at this point as you may have to delay work for a few months until you have obtained a new letter of loan offer.

It is not advisable to continue drawing down mortgage payments and your ex-girlfriend remain on the loan as she will be getting into more and more debt. The longer this goes on, your ex-girlfriend may have a change of heart and may seek to obtain her share in the property rather than obtaining money from you. 

Given the fact that this is on your family’s land, it would be advisable to try and reach a written agreement with both your and your ex-girlfriend being independently legally advised.

Karen Walsh, from a farming background, is a solicitor practicing in Walsh & Partners, Solicitors, 17, South Mall, Cork (021-4270200), and author of ‘Farming and the Law’. Walsh & Partners also specialises in personal injury claims, conveyancing, probate and family law.

Email: [e-mail]

Web: www.walshandpartners.ie

While every care is taken to ensure accuracy of information contained in this article, solicitor Karen Walsh does not accept responsibility for errors or omissions howsoever arising, and you should seek legal advice in relation to your particular circumstances at the earliest possible time.