Names on the property title

loanranger_4

Can you add additional names to the title of a property if only one person takes a mortgage out on it or will the mortgage company object ?

Eg :
buyer1 takes 70% LTV mortgage
buyer2 pays the remaining 30% in cash

Thanks

Debt_Free_Chick

I think the lender is likely to baulk at this. As they see it, the house is effectively owned by buyer 1. Buyer 1 owes them a debt, but the lender has a charge over the property if buyer 1 defaults. If you add buyer 2, then that person has a share in the equity but not the debt, so the mortgage lender, effectively, does not have a charge over that share of the property.

If the property is not yet bought, speak to your conveyancer/solicitor.

On the mortgage application form they normally ask for the names of all those over age 18 who will live at the property ... partly for this reason i.e. to establish who else may have a claim over the property.

loanranger_4

Thanks Debt_Free_Chick

I thought that might be the case!

Is the lenders likely to more amenable if in the above case the two people are married ?

Thanks

Debt_Free_Chick

loanranger wrote:

Thanks Debt_Free_Chick

I thought that might be the case!

Is the lenders likely to more amenable if in the above case the two people are married ?

Thanks

I think so, yes. But there are all sorts of issues to consider. Effectively, married couples own everything jointly. Remember the bit that goes "with all my worldly goods, I thee endow"? So you don't need to be on the deeds to have an entitlement to half share.

One advantage of not being on the deeds is in bankruptcy. If the bankrupt is not on the deeds then the Official Reciever can't take the house.

Really would suggest that you discuss this with your solicitor. I have no real experience here, just what I've gleaned from others going through similar situations. There's no substitute for proper advice from the right person.

Regards

zzzLazyDaisy

The mortgage company currently has a charge over the whole property. Adding another person's name to the deeds is effectively a sale of part of the property and will need the mortgage company's consent.

I know, from experience, that (at least some) mortgage companies will insist on both names being on the mortgage. This is because, in the event of one party defaulting on the debt, they need to make sure they can repossess and sell the house, which they would not be able to do if someone else owned part of the house and was still living there.

Sounds like you need to speak to the mortgage company concerned, or get advice from a solicitor who knows about property law.

loanranger_4

Thanks for your input.

I will be getting advice from the solicitor once we have found the right property! Informed preparation is much cheaper!