Buying House with Brother but name not on the deeds?

Bradley8284

Hi all,

I dont know where to start with this and am hoping someone may be able to advise.

My brother and I are buying a property together to get us both on the property ladder, an 50:50 split...except that he lives and works abroad.

The mortgage is in my name, although my brother is down on something, somewhere (mortgage related) that says Im not allowed to sell the property without his permission - Thats all fine. We are both named on the insurances we've taken out on the property for Home & Contents, Critial Illness etc.

Im now in touch with the solicitors and it all looks to be in my name which I assume means that it will be my name on the deeds? Does his name have to be on the Deeds to stop me selling up without his permission? Can I get his name on the deeds without him having to sign anything? (He cant make it back tio sign things before Christmas and we're desperate to avoid paying Stamp Duty!)



Fundamentally, we both want to be on the property ladder but Im concerned that it looks like its all in my name and my brother will end up as a 'first time buyer' in a few years....! I do not know which one affects his status - Is it the mortgage people or the solicitors?

And he's living the life of Reily whilst Im sorting his mortgage....!

Thanks all,

Laura

kinglewis

If your brother is unable to sign anything due to being abroad then the solicitors will place a charge against the property which means your brother will have to give permission for the property to be sold. (Where he will ensure he is getting his share from the sale). This charge is registered with the Land Registry next to where the mortgage lender also has a charge (ensuring they get their money back whenever you sell.)

It it likely that the property (deeds) and the mortgage will be in your name only. Which usually means they will chase only you if there is ever any issues with payments being late etc. Also missed payments will not affect your brother's credit rating.

Your main point was that you didn't want your brother to be classed as a first time buyer whenever you come to sell. If someone is a first time buyer or not doesn't really make any difference. Banks usually ask the question (as they offer nice tempting rates to FTB) but don't go on to check it they just expect people to tell the truth. Someone is more likely to pretend they are a first time buyer than the other way round to obtain these good rates. In your brothers case he would be a first time buyer according to credit ref agency.. but he would only have to explain his situation and he would not be classed as FTB.

So in summary.. Wouldn't worry about it.

Hope that makes sense!

Bradley8284

Thanks for your response. Thats great!

And he knows missing a payment isnt an option....! If he wants keys to his own house anyway...

Thanks, Laura

princeofpounds

Well, it's a slightly complicated transaction, but assuming it's what you want to do then the first thing is don't panic... you will be able to arrange things to achieve the desired end-result.

I'm a bit worried however that you seem to be so far down the line without yet a clear idea of what your situation is or how it will develop. The details you provide are not enough to tell you exactly what to do.

The mortgage is in my name, although my brother is down on something, somewhere (mortgage related) that says Im not allowed to sell the property without his permission - Thats all fine. We are both named on the insurances we've taken out on the property for Home & Contents, Critial Illness etc.

Are you fully aware of the fact that if your brother bails you are responsible for the whole mortgage? And that you will find it hard to sue your brother to claim compensation as he is abroad? If yes, and you are ok with that risk, then you don't need to worry too much - the key thing is to get and service the mortgage.

Also, check that the insurances you have got will really help if required - if your brother is not a UK resident they may refuse to pay out.

Im now in touch with the solicitors and it all looks to be in my name which I assume means that it will be my name on the deeds?

Ask the solicitors, that is what they are paid for, to answer things like this. I think it is unlikely that the mortgage company (who plan to lend only to you it seems) would allow anyone else to part-own the house, otherwise it will be hard for them to repossess.

Does his name have to be on the Deeds to stop me selling up without his permission?

Either on the deeds or he has to have a charge over the property at the land registry.

Can I get his name on the deeds without him having to sign anything? (He cant make it back tio sign things before Christmas and we're desperate to avoid paying Stamp Duty!)

unlikely.

Fundamentally, we both want to be on the property ladder but Im concerned that it looks like its all in my name and my brother will end up as a 'first time buyer' in a few years....! I do not know which one affects his status - Is it the mortgage people or the solicitors?

What is wrong with being a FTB? You don't get a cheaper mortgage for having already bought a house, although you might have a higher credit rating that allows you access to a better deal. But once you have a good credit rating you don't get anything extra for being ultra-good. It's a system of thresholds, not a bonus point thing.

The thing that matters the most if you qualify for a mortgage is having a big deposit (or equity in a house which will be sold and form a deposit). The key to a good deal if getting it over levels of 10, 20, 40% etc. Once you get to 40% deposits it really doesn't help things get much cheaper as the money the bank is funding itself from still costs the same amount, you are just reducing their credit risk on top of that.

princeofpounds

And he knows missing a payment isnt an option....! If he wants keys to his own house anyway...

It's not his house at all legally, you have to understand that. You and him have a private agreement to share costs and equity 50/50, but that's between you and him. The only person dealing with the mortgage lender, the vendors and the land registry is YOU. That's the way it must be because he is abroad, unless you get some really specialised and complicated services to structure the transaction which is normally only affordable and used by wealthy people.

zzzLazyDaisy

You need to be asking your solicitor these questions.

But a word of caution - don't assume he knows what you want to achieve - SPELL IT OUT, so there are no crossed wires.

I say this because someone on another thread had registered their house as tenants in common in unequal shares but had completely misunderstood the consequences of this, so obviously somewhere along the line there had been a misunderstanding about what he was trying to achieve when he bought the house.