can i sell half of my joint mortgage?

karen83_2

can anyone help?

i have had a joint mortgage with my mum for the past 5 1/2 years but i wish to move on. is it possible to sell my half of the mortgage to my step father? he does, however have a bad credit rating - as does my mum.

how would i go about this? what kind of profit could i expect?

silvercar

You can sell your half to whoever you like.

If your mum and step father want to get a mortgage it would be subject to the lenders criteria.

Notionally the amount you would expect is half the equity ie half the difference between the market value and the outstanding mortgage. You should probably expect to knock a bit off as selling on the open market would incur costs.

Ian_W

I don't know whether silvercar (a very knowledgeable poster) has read this wrong ... or I have!

You can't sell a mortgage, it has no value to anyone else and isn't transferable AFAIK. A joint mortgage doesn't mean you owe half the money borrowed, it means between you and your mum, you owe the entire amount. So for example, if either you or your mum did a runner and couldn't be traced the one left would still owe the lender the FULL amount, not half of it.

You could sell your half share in the property though I doubt anyone other than your Dad or a close relative would be interested in buying it. Basically your mum and dad (or AN other) would need to apply for a new joint mortgage together and they would discharge the current mortgage when they bought you out and their combined names went on the deeds.

Given they've both got "bad" credit records they may not be able to get a new mortgage - they'll need to try some lenders or brokers to find out. If they can and they want to buy you out then your profit will be as described in silvercar's last paragraph - assuming they have the cash, or can borrow more than the current mortgage value, to pay you a profit.

silvercar

I assumed that OP meant to sell half the property rather than half the mortgage

I doubt anyone would pay to buy half a mortgage; I'll give half my mortgage away if anyone wants it - house not included.

lincroft1710

As they both have poor credit ratings, it would be doubtful if your mother and stepfather could raise a suitable mortgage that would enable him to buy out your share.