joint ownership question

alan_blue

ok i have a house that is worth £130k and a mort with NR of 119 and unsecured loan. My question is that if someone wants to buy 50% of the house and i continue to own 50% how does the mortgages work?

The LTV works out at 91% putting me in not able to remort position. If my collegue buys 50% do we each get individual morts at 46% LTV or do we get a joint application at 91% LTV?

I have never done anything like this and wanted to know the possibilities.


thanks in advance

littlemissmay

what do you mean when you say he wants to buy 50% of the house? is there gonna be exchange of money?

alan_blue

that we would be joint owners, he would pay 50% to NR as would i

littlemissmay

paying 50% doesn't mean that he would 'buy' 50% of the house. are you gonna make him pay 50% legally?

If he wants to buy 50% of the house, he needs to give you some of the equity, so that it is equal. so assuming house value of £130k means £11k equity so he owes you £5.5k (half each/he has bought 50% share). then i would make him contribute 50% of the mortgage payments until (1) there are more 90%+ LTV products available or (2) the LTV is less than 90% or (3) you are out of your tie-in period with NR. That way, you can remortgage and be 50% liable for your respective shares in the house.

i think when you go to register the property in joint names with the Land Registry, there is a box that you tick to ask for the property to be liable for 50% share or jointly wholly liable for the property..i'm not 100% though..

alan_blue

yeah thats true so he would pay me 5.5k yeah. We would make a lump payment of 3k to bring it to 90% and its there then. We are at the end of the fixed term next month so thats cool anyway.

So can you actually remort and arrange a split ownership then?