Help::: Changing names on mortgage + deeds

amlawren

My boyfriend and I bought a house with my parents last year. We split the deposit between the two couples, and were halving the mortgage and bills each month. However now, it is only my boyfriend and I living in the house, my parents live in Spain, and so we are paying for the mortgage and bills ourselves (the money comes out of our joint account)

The mortgage and the deeds are in my parents names. Now we all want to change the mortgage so that my boyfriend and I have total ownership of everything.

We will pay my parents back their half of the deposit privately.

The idea is to get mine and my boyfriends names on the mortgage first, then after a few months take off my parents names (so it doesn't look like we have just swapped). As well as somehow get our names changed on the deeds.

Can this be done? Will we have to pay ANOTHER load of stamp duty, as it looks as if we have done a private sale?? I am not sure how to go about this? We have nothing in writing to say that we own half of the house (obviously I know my parents aren't going to stiff us) but none of us are sure how we can change everything over without encountering lots of cost??

Look forward to hearing back from anyone that knows how to go about this??

Amy

Conrad

You said 'my bf and I BOUGHT a house WITH my parents'

Then later you say 'the mortgage and deeds in my parents name'.

I assume the latter statement is the correct one and that you are not on the deeds.
If you add your names now and dont remove parents yet then you might avoid stamp duty but if there is a mortgage on the home now this will need full underwriting as you will be new applicants.

Then if your parents later want to be removed, the lender will reunderwrite the mortgage just based opn the 2 remaining people. Now that may possibly involve a redemption penalty.

TBH what your'e attempting is pretty complex all just to avoid a bit of Tax that will be spent on your childrens / future childrens school / your NHS future treatments etc

Conrad

BTW - if yopu just buy them out now, then that too will involve a new mortgage and possible penalties to end the old one. You cannot transfer mortgages from one person to another, otherwise buyers and sellers would do it routinely

Trying_to_be_good

Sounds like you need to buy it from them at market price, possibly less what you've already put in if you have proof of that - otherwise it could be treated as a tax dodge by HMRC.

It seems strange a solicitor let you go through the original transaction, if it's as you've laid it out here, as it looks like it wasn't in your best interests. Did you have your own solicitor for the original transaction?

MarkyMarkD

I'm afraid that I agree with the other posts.

Each transfer of equity would involve a fee to the lender, and re-underwriting the loan. Doing it in two stages isn't going to help matters.

I can't understand why you didn't buy the property in 4 names in the first place, apart from the fact that some (many) lenders don't like lending to more than 2 borrowers on one property.