Key Post Side agreement with ex, where the bank refuses to allow one to take over mortgage?

Where a couple split up, one is often willing to take over the mortgage and the property, but the bank won't allow them because their earnings don't justify a mortgage of that size.

I have recommended that they enter a side agreement between themselves, where she agrees to pay the mortgage in full and he waives all interest in the property.

Has anyone actually done this?

How did it work out?

Brendan

Hi

I have been unsuccessful in doing this as I was advised that my ex would need a letter from their own solicitor stating they've been independently advised in the matter I.e waiving their interest in house.
So far after constantly chasing my ex for this he hasn't bothered & is very hard to contact yet his name is on the house/ mortgage & im paying everything in full. According to bank my earnings alone are insufficient to remove his name yet I've been paying solely for about 5years. Very fustrating!!!

Will both parties be required to sign documents if the house is sold at some point in the future?
Also, how enforceable is this agreement in reality? What if the other party realises at later date that the property has significantly increased in price? Can they make a claim on 50% of the property if this agreement is in place and has been drawn up by solicitors?

Brendan,
Just seeing your message today, I had no agreement with ex. He wanted to sell initially so I agreed, he changes his mind ever so often though. The bank would not allow me to take on the house in my own name or with partner. The house is on the market at the moment. I have paid all of the mortgage for most of the time, most of the deposit also but once all has been paid to debtors ie: solicitor, EA etc I will split the difference with him. I just want to be out of a bad situation and move on, luckily I have been given mortgage approval (albeit a smaller one) but I'll be happy once I am free.

Oh and he wouldn't waive his right to the property, he felt he paid some money in (he paid €10,000) so he should get it all back. If only life worked like that......

This has come up again.

Has anyone resolved this problem while keeping the house?

Brendan

My sense is that a Declaration of Trust would work.

The departing spouse remains legal owner but beneficial ownership transfers to the remaining spouse. As it’s subject to a mortgage, no value changes hands, so no tax implications to worry about if they’re not married.