Transfer of Equity

TimmyH_3

Hi All,

I am looking for some advice on the Transfer of Equity on my mortgage.

Basically, my ex partner, wants nothing to do with our joint property anymore. My step father is willing to change her 45% into his name. He is 69, of considerble wealth and would basically like to really help me out. The property has been for sale for 8 months, but isnt going anywhere. So, this seems like the sensible solution.

I rang Yorkshire Building Society to begin the process. Unfortunately they have said due to my step father being 69 they cannot allow him to take the 45%. This seems a little silly to me. I have debts, so would probably have to go bankrupt unless they agree to this. As my step father will only pay off my debts if he can reclaim the money from the sale of the house.

Would the under writers look at theis differently if i put a case together? maybe some negotiation?

Thes easy thing to do would be to remortgage to a company that will accept him, but there is a £4800 ERC on the mortgage, not making it worthwhile.

Any one been through this before??

Thanks in advance for any ideas!!

Crinz

Most lenders now have upper age limits and I suspect your step father would fall foul of all of them.

Whats your mortgage term? The policy is usually that lending can not go beyond a certain age of any borrower.

In halifax its 75 so even if you are 30 then you would be forced to have a 5/6 year mortgage term to have your step father on it. i suspect the payments on this would make is unrealistic.

luckyfool

Speak to a lawyer. If your stepfather is willing to advance you monies to clear credit on the understanding he would be repaid from the sale of the property it might be possible to get a charging order on the property to secure his interests.

Alternatively why not drop the price until the property sells?

TimmyH_3

To have a charging order on the property would mean he would have to be part owner of it surely. I doubt my ex partner would be willing for that to happen if she is still on the mortgage.

The problem is that the mortgage would be more secure with my step father on it rather than my ex. My ex partner cant run the property as she now has a property of her own and I cant due to debts. So it would be repossesed and i would go bankrupt, therefore not leaving the mortgage company with anything but a loss. So if they accept my step father on to the mortgage, it would be secured and the payments could be paid each month.

I can't drop the price anymore due to a ERC of £4800. I am guessing there is no way they would waiver this either? This all just seems so unnesecery considering I have a worthy guarantor. I could understand the fight if my ex wanted to keep the property, but she just wants rid, no part of it at all.

Why are mortgage companies so difficult to deal with?