Please Help. Trying to help Family member with their mortgage crisis!

jorvik

Hello wise people, i'm hoping someone here may be able to answer my question.

Because of a horribly messy divorce several years ago my mother, for several silly reasons, has an endowment mortgage due to end in 18months time. It will leave her with an 18k shortfall. now the problems is:-

A. She cannot get a new mortgage (we have tried)

B. She will not sell the house

Now my question is, can she sign the house over to me? this would enable me to get a new mortgage to pay off the shortfall?

Or is this not allowed? Thanks in advance for those that reply.:beer:

Cazza

I would think it's probably a better idea to do a transfer of equity - that's the legal term for making you a joint owner of the property with your Mother. That way her interest in the house is protected still. This can be done at the same time as you apply for the mortgage. Depending on exactly why it is that you Mum can't be on the mortgage, it is possible for you to take out a mortgage in your sole name, even if the house is in joint names. The solicitor will be able to draw up paperwork to specify the devision of ownership etc. It is worth you and your Mother spending some time talking through this idea with a solicitor and a Mortgage Adviser before you do anything, due to possible future implications for Inheiritance Tax, Capital Gains Tax and any other mortgages you may have now or in the future. HTH!