Remove a party from a buy to let

amottofortheethos

I wonder if anyone has some advice. I have a joint mortgage with my brother on a buy to let property and have had it for over 8 years. Our mortgage is with the Bank of Scotland at present after remortgaging a few years ago. The monthly payment comes from my account where the rental income is paid in by the tennant. In 8 years, the property has only been empty for 3 months, so the monthly mortgage payment is covered and has never defaulted. My brother has his own property, as do I, but recently he has found it difficult to manage his finances and has defaulted a few times. I have made enquiries with the Bank of Scotland to see if I could take the mortgage on solely as my credit history seems better, but they wouldn't entertain me unless I earned £25,000 per year, which I don't. This is where I need some advice. If my brother was reposessed or declared bankrupt, how does that affect our buy to let. Also, Can I appeal to the bank at looking into sole ownership as they seem to have a blanket policy rather than looking at an individual case. There is plently rental income to cover the monthly payments of the mortgage but they don't seem to want to acknowledge this income. Finally, is there anything else I could do? Thanks.

_Andy_

How does it have 'plenty rental income' whilst it's 'only been empty' for 3 months?

VIGILANT22

Best thing to do is discuss your circumstances with a whole of market mortgage adviser.....BTL criteria is so complex due to the variations between lenders...to do this on yr own would probably end up with multiple credit scores and could be declined for that alone...an experienced advisor will know where and if you can be placed....
Quote..Can I appeal to the bank....no!

amottofortheethos

Not too sure what you're getting at, what I meant was that the rental income more than covers the mortgage payment, by about £80 and that in the 8 years of owning the property, there was one gap of 3 months whilst awaiting new tennants that the property was empty and the mortgage payments were covered by myself.

V_J_Conn

I agree with Vigilant22 to give you some idea of how to have the mortgage in just your name, which does seem wise you need to discuss it with a mortgage broker expereinced in buy to let. Information needed is value of property, current loan, current rent, then the case needs to be discussed with a lender prior to submission
By the way will your brother agree to having his name removed?
Good Luck
BuyToLet- Vivienne

herbiesjp

Most BTL lenders tend to have a minimum income that they require now - in order to cover void periods etc.

Now there are lenders that have a lower minimum income, however you would need to see if the rental income you get is sufficient to get the mortgage agreed based on the rental calculator of the chosen lender.

What is the property value?
What is the mortgage amount?
What is your income, and what is the rental income (then we can deduct £80 to work out the mortgage payment)?

TMSL

There are three lenders out there who require no minimum income , but you may find that the rates arent very pretty and the fees to remortgage are also high, I would imagine it might be the lesser of two evils. You would need to carry out a transfer of equity whilst remortgaging to remove your brother from the mortgage.

Thrugelmir

If your brother was made bankrupt. The trustees could force the sale of the property to realise the % of equity belonging to your brother.

Why not sell this joint property? Then your brother could alleviate his financial situation.

getmore4less

You would need to buy your brother out

Whats the place worth, how big is the debt, what proportions do you own each?

If he went bankrupt and you had just transfered the equity to yourself the OR might find out and come after the money.