I have a case where a married couple wish to settle assets including the family home that has an outstanding mortgage with Barclays. They are going to remain liable for the repayments, have lots of equity and have never missed a payment.
What is the likely attitude of Barclays to the request for lender consent to place the property into a discretionary family settlement?
The position Barclays take will depend on the mortgage T&Cs so the clients will need to contact Barclays and see if they are willing to agree to the transfer. The issue will be that the property on which the mortgage is secured will no longer be owned by the parties liable for the mortgage, so their repossession rights etc would be in jeopardy.
Any change of ownership conducted without the lender’s consent is likely to be a breach of the terms of the mortgage which will result in the lender demanding immediate repayment of the full mortgage balance.