Name on Mortgage

Claire3009

Hi
I was living with my parents when they purchased their council house and I was on the electoral register at that time.
Through no fault of my parents I was named on the mortgage, why, no-one knows because my parent had more than adequate salaries and I was a student with a part-time job.
I wish to have my name removed and I was hoping someone could tell me what is involved.
Thank you.

roonaldo

You would need to contact the lender about a transfer of equity, they will only agree to it if the mortgage is found to be affordable for them. You will also need to appoint a solicitor.

Senior_Paper_Monitor

.... and you will have blown any chance of SDLT exemption if you are about to purchase in your own right

holly_hobby

Senior_Paper_Monitor wrote: »

.... and you will have blown any chance of SDLT exemption if you are about to purchase in your own right

I doubt the OP knows what SDLT means !!



For the OP - SDLT means Stamp Duty Land Tax

Stamp Duty Land Tax is payable on the pch of a property with a value exceeding £125k - however if you are a first time buyer (upto 24 March 2012) there is an exemption on SDLT for properties up to a pch price of 250k.

As you will no longer be classed as first time buyer you will have SDLT exemption upto 125k and a 1% fee from 125k to 250k.


So lets get to the main course ...

To have you released from the mortgage, the lender will require the remaining mortgagors (borrowers) to have sufficient income to service the mortgage.

If they don't ... well you can't be released - although one might argue that as student with a part time job, and the fact that you say your parents income was sufficient - your salary was never reqd to support the original borrowings in the first place.

A reason why you MAY have been included on the app by the adviser, is your age - if your parents ages & the selected term i.e 25 yrs, took them into retirement, that may be why the adviser included you as a party, whose age at scheduled redemption would be within normal Normal Retirement Age (NRA) limits. (although in that case your salary would have been looked at ... )

If the lender is in agreement for your release, you will need a solicitor to facilitate this and there will obviously be legal fees anda poss mortgage admin fee payable.

Hope this helps

Holly