desperate for answers - please advise

ellieflo84

hiya,

will try and be brief but this seems to be quite a complicated issue.

my mother died in nov 2009, i inherited her house. unfortunately there is a mortgage on the house equating to approx 30% of the total value. My husband and i have a debt management plan so are unable to get a mortgage. However my husbands brother and his wife are in a position to get this mortgage and become joint owners and come and live with us.which would be the most preferable solution.

we have spoke with one mortgage advisor who states i would have to go onto the mortgage and he wants my pay slips bank statements etc. the problem being that i will not be approved for a mortgage, plus we dont want a 3 way mortgage. they want their own mortgage for the percentage of the property they would own.

the difficulty we have is that no one seems to have dealt with this situation before so i'mnot sure how accurate the advise is.

any advise greatly recieved

many thanks

CloudCuckooLand

You cannot get a mortgage for half ownership of a house (shared ownership excepted, which is a different kettle of fish).

Although the amount in £'s that they would need is half (or whatever %), the Lender needs to have names of all the owners of the property on the mortgage, so they can repossess should the situation require it.

They would be unlikely to like you being residents, without being on the mortgage, if you decided to let the joint owners own the whole thing for convenience of getting a mortgage, either.

1 option would be to sell the property, clear the mortgage, split the balance of funds and rebuild your credit history, then buy again.

Others may come along with workarounds which don't give up the house...I can't think of one at the moment.

Senior_Paper_Monitor

Simple answer is if you are on the deeds you must be on the mortgage.

A structure around them raising a mortgage to buy you out (provides you cash to sort your debt problems - lots of opportunities for good settlement figures) and a deed of trust (or second charge) solution for future disposal and your ongoing use of share of house should be do-able.

Only certain lenders will permit the purchase of a property that has been owned for less than 6 months and the 'previous owners' continuing interest but should still be doable.

Needs an imaginative broker who can think out of the box and a solictor.

themull1

sell the house, pay off the mortgage.