Getting finance after separation
In a property settlement negotiation, separating individuals need to make their intentions clear about how they intend to split the assets.
When it comes to property, individuals need to decide if they wish to;
Sell their share of a property to their ex
Sell the property
Take over full ownership of the property
For individuals intending to take over ownership of a property, they will need to re-finance (in most cases).
Here are three tips to consider when buying out an ex.
1. Get a mortgage broker
If you are considering taking ownership of the former marital home., you need consider the impact it will have on the existing arrangements that may be in place, especially if the property is subject to a mortgage in a joint name.
If both parties are on the mortgage, the remaining titleholder will need a "new" mortgage in their sole name. It is often a challenge for many individuals to take out a mortgage in their sole name.
Talking to a mortgage broker (sooner rather than later) about your borrowing capacity post-separation can assist you to make informed choices.
A mortgage broker can provide you with the information to understand your new financial position. This will include borrowing capacity, taking into account current and future changes to your circumstances. Many newly single persons may be entering the mortgage market for the first time in a while.Some individuals may not have been the prime income earner or qualify as a traditional employee as they are sub-contractors.
2. Settlement agreements
To obtain financing after separation, banks require a fully executed financial settlement agreement.
There are 2 settlement agreements the banks will accept;
Consent orders are a written agreement that is approved by a court.
A Financial Agreement is a written document that states how you want your property to be divided if you separate. It does not have to be approved by the court. Both parties will need independent legal advice.
3. Property Transfer
Once you have your finance ready and you possess a fully executed settlement agreement, it is time to arrange a property transfer to make sure your ownership is represented correctly. In order to achieve this, you will require a conveyancer.
Contact Mark Passador from MCP Finance on m.passador@mcpgroup.com.au for a quick chat and quote. Mark has over a decade of experience in residential finance broking, is accredited with all the major banks, and can assist clients anywhere in Australia. You can learn more about Mark at the following link - https://www.mcpfinancial.com.au/about/locations/melbourne.