Co-owning on separate mortgages?

fuschia-sky

Hello, desperately looking for some advice!

I am buying a house with my mum and am days away from exchanging. I am raising a mortgage for my half (all sorted) and she is funding her half partly by remortgaging her house (all sorted) and partly with cash savings.

I had a phonecall from my solicitor today telling me that we can't have both our names on the title deed because we do not have a joint mortgage... This seems ludicrous to me - we don't have a joint mortgage because we don't need one, we are funding our purchase in ways that suit us as two separate people (she is self-employed so it was going to be much easier to remortgage for her part). But we are both paying equal amounts of money for the house, so for only one of us to be on the deeds is ridiculous. I cannot understand why he is only mentioning this now!

My mortgage is with Natwest and our initial contact with them consisted of my mum going and talking to them about the situation. They suggested that separate mortgages would be a cheaper way to do it. When applying for my mortgage I explained the situation to my mortgage advisor and no questions were raised at that stage either. I'm thoroughly confused!

I'd appreciate any advice anyone can give - this whole thing (my first house purchase) has been an absolute nightmare from the start

Chloe

magpiecottage

I am afraid your solicitor is right - either the mortgage must be in joint names or the house in your sole name.

Look at it from the lender's point of view - if it all goes pearshaped they can't take possession of half a house.

If you explained that the property was being purchased in joint names before applying for the mortgage and they recommended you take one out in your name alone then you seem to have grounds for complaint.

But it is not the solicitor's fault. If NatWest recommended a single mortgage on a property they knew was being purchased in joint names then that would be their fault, though.

DVardysShadow

A mortgage is always on a property, never to individuals and it comes ahead of ownership of the property

Let_Us_See

I think you are very confused. I am positive NatWest or your mortgage adviser would have guided you down the correct path if they had been fully aware of your plans. Separate mortgages were never an option, what you are trying to do is simply not possible.

Mortgages are provided to fit the T & Cs of the lender and your situation will not meet any lender's criteria.

getmore4less

You are aware that should you sell or buy out your mum there will be a potential Capital gain that may be taxable.

May be better for her to gift you the money and you own the place.

Let_Us_See

Not if acquired at market value.