Mortgage & Deeds.

McKneff

My daughters partner is hopefully on the brink of selling his house.

He/they intend to buy another one with the proceeds from his house
and a mortgate of say £20k in his name.

Can the whole mortgage be in his name and the deeds of the house be in both his and my daughters name.

Senior_Paper_Monitor

Simple answer - no (lender won't accept that for a secured loan like a mortgage).

There are some slightly more complicated solutions which could protect your daughter's interests (which I assume is what you are trying to do).

And the reason she can't go on the mortage is ? Was she on the previous mortgage ? Did she contribute to previous mortgage/house costs/reduction in borrowing ? Is she putting any lump sum into the new purchase ? Answers will decide what structure might or might not be advisable to address the issue. i.e If bad credit/debts are the issue it may not be sensible for her to own anything (but gifting would probably be dangerous)

McKneff

Bad credit about 3 years ago stops her getting a mortgage. She has had no debts since selling the house and paying them all off at that time. They both have good jobs.

I am pleased to say that daughters partner loves her so much he is buying the house outright (with a small mortgage) but she will half share which i think is extremely generous of him, this is why i asked really, i suppose as long as he makes a will and vice versa then there should be no problem. It may only be a 10K mortgageor probably still easier, a personal loan.

Senior_Paper_Monitor

In that case I suggest they should look at establishing a Deed of Trust and supporting will which will effectively protect her interests on sale, separation or his death (a small life policy to pay of the mortage in the event of his utimely demise would also be sensible - possible matched by serious illness cover so in the event of him being ill/unable to work they would be mortgage free while looking after him).

I am taking any IHT/CGT issues as a result of other assets - and assuming no-one else has a claim on his estate - into account.

McKneff

Thanks for all your help,
major developments today, an offer was made on his house, compromise, and then acceptance.

An offer by daughter and partner for the bungalow they fell in love with has been accepted.
Only £20K between the two.

We are all buzzing,
Your advice will probably be taken about the deed of trust. They will probably be seeing a solicitor during the process and sorting it all out. The bungalow that they have made an offer on belonged to an lady who unfortunately died and her inheritors (adult children) dont get on so the bungalow which was originally 199.950 was suddenly dropped to £170K to get rid of it so a real bargain.

Thanks for your input. much appreciated.