Buy out (sever) tenancy in common -when lender won't allow

amduser

Hi all,

I bought a flat with my girlfriend under tenancy in common last yr with a joint mortgage (250k). Current market price of the property is around 400k. I am seeking to buy out her share (40%), however our lender won't allow me to take on the mortage under my own name as I do not have sufficient annual income.

I am wondering if there is any way to buy her out? I don't want to sell the property and I am also concerning about the SDLT payable on the potential buyout, given her share of the property is over 125k.

Help

Thanks

CloudCuckooLand

Get another girlfriend with the same income as the first ?

Sell your other property ?

Richard_Webster

Some lenders register a restriction at the Land Registry preventing dispositions of the property without their consent, others don't.

If there is no such restriction then you can get her to transfer subject to the mortgage. You will have to pay £1,600 SDLT - worked out on £60K cash (her 40% of equity and £100K the 40% share of mortgage debt you will be taking on. Also she may not be too keen on the fact that she won't be released from the mortgage liabilities so if you don't pay int he future she will still be liable to the lender and could get a bad credit record.

Annisele

How much income do you have? If it's only just under the amount your current lender requires, then it's possible that you could remortgage in your sole name with another lender.

If your income is too low for your to remortgage in your own name (either with your current lender or with a new one) then you may ultimately have to sell the property. I can't see your ex agreeing to still be liable for the mortgage if she no longer has an interest in the house, and she might be able to force a sale.