Changing the name on my mortgage - help please!

ditzyblonde999

Hi

I currently live in a flat which was generously purchased by my mum and dad whilst I was at university, I am now in full time employment and pay the mortgage directly to the mortgage company every month and my parents no longer have anything to do with it. How would I go about getting the flat transferred over to my name? Would I have to remortgage it into my name or purchase the property from them?

Any help would be much appreciated!

Thanks

Michelle

ditzyblonde999

Hi

I currently live in a flat which was generously purchased by my mum and dad whilst I was at university, I am now in full time employment and pay the mortgage directly to the mortgage company every month and my parents no longer have anything to do with it. How would I go about getting the flat transferred over to my name? Would I have to remortgage it into my name or purchase the property from them?

Any help would be much appreciated!

Thanks

Michelle

_Andy_

You would need to apply to have the mortgage in your name. They would assess it as normal i.e. credit/income/employment etc etc.

poppysarah

When they took out this mortgage did they tell the bank it wasnt them living there?
You could ring the bank and ask what the procedure is.

TEDDYRUKSPIN

Andy is correct. You will need to reapply for a brand new mortgage and a solicitor will be involved also. Treat it as a first time buyer.

clutton_2

there will be capital gains implications for your parents when they sell it to you ... how long ago did they buy it and how many years are left on the loan ?

you will only be able to get a mortgage if your income is acceptable to the mortgage lender

if your parents only bought it 5 (or less) years ago there may well be swingeing Early Repayment Penalties to be paid by them if they redeem the mortgage early .

lots of things to consider

MarkyMarkD

I can't understand why they ever bought it in their name. That was a bad idea for lots of reasons.

If they already owned their own house, it could have capital gains tax implications as it is a second property and hence not exempt from CGT.

You can't remortgage it - it doesn't belong to you. You must buy it from them. They can charge you whatever they like, but for CGT purposes it will be valued at market value. The lender will also take the market value, or what you pay them, whichever is lower, and will want you to put in the appropriate deposit although this may be in the form of a gift from them.

It would have been a lot easier if they had simply guaranteed a mortgage in your own name in the first place, which would then need no messing about at this stage.

There will be legal costs for the change of ownership, and application costs for a new mortgage. If the existing mortgage has penalties, those will be payable.

MarkyMarkD

OP - please don't post the same question twice - it is just annoying. And welcome to MSE, by the way.

Thanks

MMD

silvercar

As far as CGT is concerned, there is a precedent where a property was purchased in the name of parents purely to get a mortgage and the child had made all mortgage payments and maintenance from day 1.. It was ruled that the property was only put in others name to obtain the mortgage and they were holding it for the benefit of the child.

I doubt this would help you unless you can show that you have made all the mortgage payments from the beginning.

If your parents are agreeable, you could do this in stages. First become a joint owner and then take it over. This has the advantage that you can access the mortgage deal your parents currently have and it reduces the CGT liability. Disadvantages is that it takes time and getting the lender to agree to the removal of parents name is not guaranteed.

chivers1977

Is it just the mortgage that is in your parents name or is it the title as well?

Frequent_Flyer_UK

I would have thought first thing to do would be to talk to your parents about it but hey ho that's me old fashioned