Changing name on Mortgage
Discussion
Anyone know the process to go about this?
Basically I live with my brother. I wish to move out and find a new place with my other half and he wishes to remain at the current property with his other half. So essentially need to remove myself from the mortgage and add my brothers other half.
Sounds simple but I'm sure it's not.
Basically I live with my brother. I wish to move out and find a new place with my other half and he wishes to remain at the current property with his other half. So essentially need to remove myself from the mortgage and add my brothers other half.
Sounds simple but I'm sure it's not.
techmoan said:
Anyone know the process to go about this?
Basically I live with my brother. I wish to move out and find a new place with my other half and he wishes to remain at the current property with his other half. So essentially need to remove myself from the mortgage and add my brothers other half.
Sounds simple but I'm sure it's not.
Your existing lender are lending to you both, on the basis of your joint financial situations. He needs to apply for a mortgage in his own sole name, or with his partner. You will also need to change the ownership of the property at the Land Registry.Basically I live with my brother. I wish to move out and find a new place with my other half and he wishes to remain at the current property with his other half. So essentially need to remove myself from the mortgage and add my brothers other half.
Sounds simple but I'm sure it's not.
As above, it's not just a case of swapping names on a mortgage. Your brother and partner will need to apply for a new mortgage, whether that's with the existing mortgage co. or a totally new one - don't assume the existing mortgage co. will be the cheapest.
You also need to check whether Stamp Duty will be payable. I'd have thought you should probably have a solicitor acting for you.
You also need to check whether Stamp Duty will be payable. I'd have thought you should probably have a solicitor acting for you.
techmoan said:
essayer said:
Presumably his other half is buying your share of the property too..?
Yes she's simply going to give me cash for my half of the profit. You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
deckster said:
No she's not.
You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
Ok house is mortgaged at 190,000 current value is 250,000 that is 60,000 "profit" You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
Why can't she simple pay me half of that 30,000 then I just remove my name and they remortgage with her name?
techmoan said:
deckster said:
No she's not.
You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
Ok house is mortgaged at 190,000 current value is 250,000 that is 60,000 "profit" You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
Why can't she simple pay me half of that 30,000 then I just remove my name and they remortgage with her name?
You and your brother jointly own a £250k house.
You and your brother jointly owe £190k to the mortgage lender.
If your SiL just gives you £30k, then that doesn't much help anybody, does it?
You and he need to repay the £190k, which will be done by him and SiL taking out a new £190k mortgage. The LR ownership needs to be changed. You will probably ask for £30k in order to do that. That might come from borrowings, so a £220k mortgage. SDLT will almost certainly be payable - and not just on the £30k, because that's not the real sale value of the property.
Basically, you and he are selling the house - and he and SiL are buying it. They probably won't want all the legals redoing, because they know most of it. But the new lender will certainly insist on a solicitor doing a lot of the paperwork, and they will probably insist on a valuation survey.
This assumes that they will get the mortgage in their own names, of course. If they can't, then the whole deal is off...
because the current mortgage company has assessed you and your brothers financial profile, based on this information they have decided that they would loan you the amount to purchase the property.
as it stands, the mortgage company doesn't know the risk associated with the 3rd party wanting to take over your share.
the mortgage company wont care if anyone gave you £30k for your share of the property, because in their eyes you and your brother are still the legal joint owners of the property.
you are selling your share of this property to the 3rd party, regardless of what you think you can do.
as it stands, the mortgage company doesn't know the risk associated with the 3rd party wanting to take over your share.
the mortgage company wont care if anyone gave you £30k for your share of the property, because in their eyes you and your brother are still the legal joint owners of the property.
you are selling your share of this property to the 3rd party, regardless of what you think you can do.
I have literally just done this.
It does sound simple, but it takes f
king ages.
I did exactly as you said and gave the other party a lot of money in cash, it didn't go down too well with the solicitors.
You have to firstly go through affordability to check that the new person is ok to be added, if so it counts as a whole new mortgage, should be able to avoid early repayment fee's if sticking with same lender, and also they might be able to give you free legal (I did this and they were awful). The equity transfer should be handled by the solicitors, and you'll need proof of where it came from and all the rest. Where I went wrong was just doing it myself but I eventually sorted that.
Then you'll have to pay the fee's for having the land registry/deed or whatever amended. It took me at least 2 months to do all of this despite easily being able to afford the new mortgage on my own.
It does sound simple, but it takes f
king ages.I did exactly as you said and gave the other party a lot of money in cash, it didn't go down too well with the solicitors.
You have to firstly go through affordability to check that the new person is ok to be added, if so it counts as a whole new mortgage, should be able to avoid early repayment fee's if sticking with same lender, and also they might be able to give you free legal (I did this and they were awful). The equity transfer should be handled by the solicitors, and you'll need proof of where it came from and all the rest. Where I went wrong was just doing it myself but I eventually sorted that.
Then you'll have to pay the fee's for having the land registry/deed or whatever amended. It took me at least 2 months to do all of this despite easily being able to afford the new mortgage on my own.
Edited by okgo on Tuesday 21st March 11:32
techmoan said:
Ok house is mortgaged at 190,000 current value is 250,000 that is 60,000 "profit"
Why can't she simple pay me half of that 30,000 then I just remove my name and they remortgage with her name?
Because it's their mortgage and their contractual terms, for which you need proper legal advice, and you need to talk to your mortgage company. Why can't she simple pay me half of that 30,000 then I just remove my name and they remortgage with her name?
I bought a house with my GF years ago
When we split up I spoke to my mortgage lender and removed her from the mortgage and then I had to pay my solicitor to remove her from the deeds with her consent and a payment.
I didn't have to remortgage but the solicitor was a pain in the arse.
It was 2003 with HSBC
When we split up I spoke to my mortgage lender and removed her from the mortgage and then I had to pay my solicitor to remove her from the deeds with her consent and a payment.
I didn't have to remortgage but the solicitor was a pain in the arse.
It was 2003 with HSBC
techmoan said:
deckster said:
No she's not.
You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
Ok house is mortgaged at 190,000 current value is 250,000 that is 60,000 "profit" You are selling half of a house. She is buying half of a house.
This isn't difficult, but it's also not as simple as you think it might be so as has been said get some professional advice.
Why can't she simple pay me half of that 30,000 then I just remove my name and they remortgage with her name?
(Tax evasion: there's stamp duty involved).
I bought my brother out of a joint house recently, and it's not too complicated if the mortgage lender is understanding to the situation. Both of us went in to see the lender at the same time and got it all sorted out. The guy we had the appointment with said it was very common for this sort of stuff to happen, especially with folk getting divorced, or unmarried couples that had moved in together deciding to separate.
Make an appointment to see your lender, they will (maybe that should read "should") keep you right.
Only extra expense we had was an official valuation, but don't rush out and do this without checking with the lender, as some insist on using their own, and won't except valuation reports from all surveyors.
Make an appointment to see your lender, they will (maybe that should read "should") keep you right.
Only extra expense we had was an official valuation, but don't rush out and do this without checking with the lender, as some insist on using their own, and won't except valuation reports from all surveyors.
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