Name On Mortgage

PeterJames123

Cat695 wrote: »

For a start you cannot "sign over a mortgage" whoever gets the mortgage it is theirs until....they pay it off.... or Die! you CANNOT sign it over!! FACT if the parents wanted the house they would then have to get a mortgage......or pay for it outright FACT

So from what your saying they want your wife and Close friend to get a mortgage on a house.....the parents live in it and pay your wife/close friend the mortgage? (this is illegal if they don't tell the Bank that they are letting the house out which is what they are doing) and are committing Fraud

So what does your wife do if they don't pay?? kick them out and rent the house out? can she and close friend afford the mortgage if parents don't pay??

is close friend of parents your close friend?

I understand your wife is wanting to help your parents but she could be putting herself and her family in financial danger if the worst happens.... its as simple as that! unless she/you earn vast amounts of money and can afford two homes (if she rented it out it probably wouldn't cover the mortgage especially in the current housing climate).

She is MAD to do this....but i bet she will still argue its a good idea....why must they have this house now??? can't they wait its probably NOt going to be sold so would be cheaper in a year anyway.......houses have already dropped 10% and are dropping fast (really fast depending where you live). MUGS to buy now with a large mortgage

Believe me I have tried, my wife has been under so much stress over the whole thing. She is an only child and her parents have put this on her saying they need to move out of there current rented accommodation as they hate it. She is under so much pressure and we are just stuck. So what they are saying is not possible, she can not take her self of the mortgage until its fully paid? There is no way she can sell her half to her farther later on at a silly price just to get out of it?

Cat695

Tell them to rent somewhere else then......Mate she really is putting her own family in deep trouble if she does this.....
That 185K house will be worth less than 150 in 3 months......3 months more it will be worth even less

so in simple terms

House now 185k wife/friend gets mortgage for 185k (though you can't get 100% mortgages at the moment)

in a years time house is worth 120k (and i reckon thats being very generous) so parents get a mortgage for 120k (as they can't get more because house is not worth more)

that means theres still 65K to find to pay off your wife/friend (as i'm guessing they will go for a interest only mortgage) so where does that come from??

HOUSE PRICES ARE DROPPING FAST....NOW IS NOT THE TIME TO BUY
Her parents need to understand what they are doing to your wife......are you ready to lose your home because her parents don't like theirs?? because thats what can happen if she does this!!!

plumtreebabe

Hi there, your wife can’t actually do this. There is no legal way of transferring a mortgage into someone else’s name. I couldn’t even put my partner onto my mortgage: we had to apply for a new mortgage together, which we did and we got it.

There are several options (AND I AM NOT RECOMMENDING THESE, just clarifying them.

1. Her parents stay put.

2. Her parents move to another rented property.

3. Her parents buy a house through the council’s or housing association part buy part rent scheme. This is a good compromise and no risk to your wife.

4. Her parents get a mortgage in their name with your wife and other person acting as guarantors. The bank would have to be satisfied that your wife and this other person could meet the payments should the parents default. The parents would have to apply to get the guarantors removed from the mortgage and prove to the bank’s satisfaction that they could now be relied upon to be able to meet the mortgage requirements.

LIFE INSURANCE: if either parent dies then who will cover the mortgage payments? If your wife or other person dies the bank will require new guarantor.

5. Your wife and the other person buy the house between them. They would own the house and be responsible for the mortgage. They could not transfer the mortgage to the parents. The parents would pay ‘rent’ to cover the mortgage payments. They would have to apply for a new mortgage to buy the house off your wife and other person. If house prices go up there will be capital gains tax to pay (even if the house is sold at below market value). If the house goes down in value the new mortgage will not cover the gap.


LIFE INSURANCE AND WILLS: If either of the parents die then they will be unable to buy the house or cover the payments and then what? If your wife or other person dies then if your wife has not made a will her half will transfer to you.

While your wife has this mortgage in her name or is acting as guarantor you will not be able to get a mortgage between you unless you can prove to the bank that you can pay for both.

It seems highly likely to me that the banks are not going to accept your wife and this other person as guarantors or mortgagees anyway, because if you are living with your parents I am assuming that you don’t have your own property anyway, which is the sort of financial guarantee that the banks would want. (It may even help your case if you made some enquiries to prove this, taking the pressure off your wife).


I can only reinforce what everyone else said: IT IS A TERRIBLE IDEA DON’T DO IT! However, it might be easier all round if you can prove it can’t be done.

Good luck,

Plumtreebabe

silvercar

Easiest way is to tell her parents that you intend buying in the next year, so need your wife to go on your own mortgage which won't be possible if her name is on another property and mortgage.

Don't know how easy it is to get a BTL mortgage when you don't own a property of your own. Lenders usually prefer owner occupiers to those renting.

sarahk100574

Hi, this is my first post on here,but I just wanted to say to Clapton that a person can be a legal owner of a house without being on a mortgage. I have been for a few years now.
To do this a solicitor will need to draw up a tennants-in-common deed. This (if I remember correctly) allows a person to be entitled to second charge on a property after the mortgage co. In my case, I 'own' 55% of my home as in tennant-in-common with my partner who has the remaining 45%. The mortgage was originally for 75-ish% of value of the house (valued by mortgage co @ £110K, mortgage taken by by partner for £85K). This was because we bought the house from my mum, who effectively gave me the additional £25k as a gift. As a non-working parent at the time we didn't even think about me being a mortgagee, with no income to 'count towards' the offer. We have also successfully switched mortgage products once while we have this situation. So now my partner is the sole mortgagee but I am the one who owns a bigger share of any profit made on selling up. It protects me and the kids as we also have a clause that he cannot sell without my permission.... sounds odd but the mortgage co seemed happy enough (C&G), and also the house was re-valued at £132K when we re-mortgaged for £82K, so maybe the equity in it helps them to decide on whether to accept or not.

To the original poster - this may be a way forward for your situation too. The wife, friend & parents could all be tennants in common, with the mortgage being in the name of the wife & friend. Obviously requires a lot of trust on all sides, but is not impossible. Wife & friend could have say 49% each, giving parents only 2% tennants-in-common rights, so if they don't pay up each month the wife & friend could sell up, taking any money thay had to pay from their share of any profit made? The parents would become legal owners along with the mortgagees so that they can become 'homeowners' - maybe then could get a mortgage in their own name? Just a thought but maybe worth visiting a solicitor.