Adding and Removing name from mortgage

asu2z

Hi.. all

I have a interest only sole mortgage with Halifax for last 2 years.

Due to some unavoidable circumstances we need to transfer the ownership and mortgage of the property (family home) from my name to my brother's name. But at the same time we do not want to re-mortgage (in order to avoid early repayment charge) and also we are enjoying low tracker rate for last 2 years and we want this to continue for next 3 years.

Could below be a possible solution for above?

My brother income is high enough and has good credit rating, so we are initially looking to add him to the mortgage and deed and once he is added I will withdraw myself from the deed and mortgage. Then my brother will be left and objective of changing ownership is acheived.

If this is workable then my question is, how much will be the cost involved approx?

Helpful responses will be highly appreciated.

asu2z

Anyone please?

rizwan567

Anyone please?

Thrugelmir

Easier solution would be for you to sell your brother the property. Possibly at a discount to market value but sufficent to discharge your mortgage liability.

In the process you would lose your current mortgage product. This would happen however you attempt the transaction.

getmore4less

Does he live in the place or will live in the place?

What are you trying to achive/avoid by doing this?

Many transaction done to try to avoid things can be undone.

Senior_Paper_Monitor

The process you describe is technically possible.

There would be legal/admin bills probably in excess of £1K involved (not allowing for stamp duty *) and agreement of the lender - the latter may well not be forthcoming (for any one of many reasons) and there will certainly be a requirements concerning minimum time between transactions (my guess is 6 months). Also be aware that acceptance of the 1st transfer would be no guarantee of the second and that may leave all parties in a tricky situation.

* I have a hazy recollection of some clause deep in the acts concerning stamp duty that will apply any such liability on the total by way of the second transaction if it was not paid on the first (I would need to check that to be sure).

Finally, and probably of most relevance, as Mr getmore4less asks/states in #5 I would quote my reply in a previous thread which may also apply here ....

I note your comment "make sure everything is protected" and based on "no end of trouble" and "any issues with this mortgage" I assume your are 'trying to protect the family home against debt elsewhere on your portfolio' (my apologies if I am wrong in this assumption).

As part of the transfer of equity it will be necessary for you to sign a 'Declaration of Solvency' (effectively stating that you can meet your liabilities from assets other than the one you are giving away or releasing for less than market value).

To sign that knowing the statement to be untrue could be a criminal offence and/or result in the transfer being reversed by the courts.

You certainly need advice here - a good broker (not all will be familiar with these areas), IFA and/or solicitor - before taking any 'bar room lawyer advised' action.