Divorce Day: How is a property transferred into a sole name?

For many, January is a time for new beginnings. A new year, a new start. Sadly, a new start can also mean the end of a long term relationship.

The first Monday following New Year’s Day has become known as Divorce Day as family lawyers deal with a spike of enquiries in relation to divorce and separation. Whilst the ownership of the family home will be dealt with during the course of a divorce or preparation of a separation agreement, ultimately it will be necessary to instruct a conveyancer to deal with the transfer of ownership of the family home into one party’s sole name. Usually both parties will need to instruct their own conveyancer to deal with the drafting and approval of the transfer documentation.

If the property is subject to a mortgage it is advisable to seek the mortgage lender’s advice and consent to the transfer of the property and mortgage loan into a sole name. If the lender will not consent, the transfer of the property can only take place if the mortgage can be repaid.

If the mortgage lender consents to the transfer of the property into one of the party’s sole name, the matter will usual be dealt with in one of two ways:

1. The mortgage lender will sign the Transfer Deed consenting to the transfer of ownership and releasing the outgoing party from their obligations under the mortgage; or
2. The mortgage lender will grant a new loan to the sole owner which will be used to repay the mortgage loan currently held in joint names. The new mortgage will complete at the same time of the transfer of the property into a sole name.

If you have any queries or require assistance in relation to divorce or separation please contract our family department on 0113 201 4902. If you'd like to speak to a member of our team in relation to the transfer of your family home, please contact our conveyancing team on 0113 264 4414.