securing house.

shaz1000 · 29 November 2004 at 2:45PM

My husband has his own business, but it is not a limited company. We have a £35,000 left to pay on our mortgage. I do not work because we have youngish children. Is there any way we could transfer the house into my name alone, even though I do not actually earn anything. I always worry that if there was a decline in work and my husband had no choice but to go bankrupt, that we could loose the house. Anyone got any ideas how we could prevent this from happening ? ???

Robert_Sterling_3 · 29 November 2004 at 8:25PM

You have almost answered your own question.
At present you have the advantages of not being a limited company and you would like to have the benefit of being a limited company. Perhaps it is "make your mind up" time.

Simon Kallow

deemy2004 · 30 November 2004 at 12:40AM

My husband has his own business, but it is not a limited company. We have a £35,000 left to pay on our mortgage. I do not work because we have youngish children. Is there any way we could transfer the house into my name alone, even though I do not actually earn anything. I always worry that if there was a decline in work and my husband had no choice but to go bankrupt, that we could loose the house. Anyone got any ideas how we could prevent this from happening ? ???

Yeh he can gift you the property, though any creditor can still make a claim for the property for a certain number of years, I can't recall how many but would happen a guess at 3.

shaz1000 · 30 November 2004 at 2:27PM

Thanks for the replies. We are reluctant to go limited, because of all the extra work that I have been told is involved.
In am interested in this gift idea. How can he do this if he still has a mortgage on it, because some of it still belongs to the building society, doesn't it ? Also when you say 3 years do you mean from the time he gives it to me or from the time he becomes bankrupt. Sorry if I am being thick. :-/

John_M_Business · 30 November 2004 at 2:38PM

If your husband has also been loaned money by a bank for his business, it is, in all likelihood, secured against your house.

Therefore 'going Ltd' is not just about paperwork, it's about re-negotitating any terms with the bank / or seeking another means of financial support.

If your husband does not have a loan, then this should not be problematic - although when it comes to asking the bank for money - unless he has capital to put in with a bank, it may be difficult to secure a loan.

MarkyMarkD · 30 November 2004 at 9:53PM

He can't gift it if there's a joint mortgage on it, unless you can have the loan transferred into your sole name. This wouldn't be very likely if you are not earning - although I suppose it could be in your name, with him as a guarantor.

I think what you are asking to do is a bit suspect to be honest and don't think you should go any further in thinking about it without some heavy duty legal advice as to whether what you are considering would be effective.

deemy2004 · 1 December 2004 at 2:45AM

Thanks for the replies. We are reluctant to go limited, because of all the extra work that I have been told is involved.
In am interested in this gift idea. How can he do this if he still has a mortgage on it, because some of it still belongs to the building society, doesn't it ? Also when you say 3 years do you mean from the time he gives it to me or from the time he becomes bankrupt. Sorry if I am being thick. :-/

The mortgage company will likely have a charge on the property which basically means it can't be sold or gifted without their permission, and I doubt it very much that they would agree your husband to gift it to you.

3 years from the time the property is signed over to you.

shaz1000 · 1 December 2004 at 3:05PM

What about if he employed me (as I do the accounts and admin) on a salary of say £12,000 per annum, then I would be able to take over the mortgage.Theres no problem with work at the moment, in fact we're having to turn it down, but I would rather sort this out now because no one knows what the future holds.

MarkyMarkD · 2 December 2004 at 1:24AM

That's a far better idea.

If there's no charge on the property, other than the mortgage, what you are suggesting is probably a runner.

Some legal fees involved in the transfer and the lender will want a "Transfer of Equity" fee. But not more than £500 I should expect.

shaz1000 · 2 December 2004 at 3:11PM

There are no other loans on the house, so I will give this lastest idea some more thought. Thanks for your help everyone.

DesG · 2 December 2004 at 5:29PM

You should be getting a salary of at least 5k to take into account your TFA imo

So thats definitely an option you should look at.

Cheers, Des.

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