Putting house in joint names then paying off mortgage?

Beckyy

My OH currently owns our house with a mortgage. I was not put on the mortgage when we originally bought the house as I wasn't working at the time - but aside from that we have joint finances and I have money invested in the property.

I'm now working, and currently have enough savings to pay off the outstanding amount on the mortgage. At the end of the year our fixed term will end and we will have no repayment fee, so we would like to put the house in joint names and pay off the mortgage.

How would we go about this?

Would we need to put my name on the mortgage at the same time as the deeds then pay it off all together, or would this mean having to remortgage? Would we be able to put my name on the deeds without putting it on the mortgage, and then I pay it off? (or would I need to transfer money to OH and get him to do it?)

Also, although I know it will vary but does anybody have a rough idea at the charges we might encounter doing this,solicitor etc.? (Particularly for putting my name on the deeds)

We're in Scotland, and mortgage is with Bank of Scotland/Halifax

kingstreet

You need to carry out a transfer of equity.

If you do it now, you'll need to be vetted by the lender for inclusion on the mortgage and the deeds. The cost will be in the region of £300 to £400 for the lender and the legal work.

If you pay off the mortgage when the penalties end, you can then do the TofE yourselves at a very low cost by completing a couple of land registry forms and paying them a small fee.

Obviously, if your partner refuses to agree to the transfer, you've paid off his mortgage and have nothing to show for it. You may like to think about independent legal advice to protect yourself.

TrickyDicky101

What's the value of your property, the outstanding mortgage and are you married? Answers to the foregoing questions are required to determine if you may have a Stamp Duty liability as a result of placing the property in joint names.

family6

I hope its ok to ask questions myself, not sure of forum etiquette

Kingstreet could you give more details of completing TofE myself.
I have been in the lucky position of my oh paying off my mortgage after he inherited some money. At the moment the property is just in my name. Thanks

TrickyDicky
Would we/he/me? be liable for stamp duty?
not married (partner of 14y and children)
house very rough estimate £180k
mortage paid off estimate £29k

SailorSam

I don't have a mortgage but wanted a name change on the Deeds and the solicitor estimated about £350.
It can be done for a lot less if you visit the Land Registry yourself and they'll help you complete the forms. You'll need to take ID, things like passport, utility bills etc.

Beckyy

Thank you for the replies, the help is much appreciated.

It's only a little house, value roughly £70Kish.

Mortgage currently £57000ish. Money is coming from inheritance.

We're not married, but are living as.

Beckyy

I'm wondering if it may be easiest to book an appointment with the bank and add myself onto the mortgage now, and then put me on the title deeds (either directly through land registry, or via. solicitor). And then paying it off at the end of the year when we will no longer have a repayment fee?

Would this be a practical way of doing it? I'm assuming the mortgage company may charge some ridiculous admin fee for doing it?

TrickyDicky101

family6 wrote: »

TrickyDicky
Would we/he/me? be liable for stamp duty?
not married (partner of 14y and children)
house very rough estimate £180k
mortage paid off estimate £29k

No change of ownership has been registered so you have no SD to pay, irrespective of whether you cross the thresholds. Essentially, the value of your partner's contribution would have to be greater than £125k for it to be liable to SD (and that obviously isn't the case).

G_M

What is the point of going to the time, trouble AND expense of adding your name to the mortgage if the intention is to pay off the mortgage? Mad!

I assume you trust your partner, so can ignore Kingstreet's concern.

Pay off the mortgage.

The contact the Land Registry who will advise you on the forms.ID checks needed to add your name to the Title.

Stamp Duty? Details here but on half of £180,000? No.

Slinky

Don't forget to look at whether you want to be Joint Tenants or Tenants in Common. There are advantages/disadvantages of both types of ownership which you need to be clear on before you decide which is right for you at this moment in time (you can change in future if you need to and both agree).

kingstreet

Beckyy wrote: »

I'm wondering if it may be easiest to book an appointment with the bank and add myself onto the mortgage now, and then put me on the title deeds (either directly through land registry, or via. solicitor)

You can't do it yourself while you have the mortgage. So, to do it now you have to get the lender's agreement and pay its fees and pay for a solicitor to act on behalf of the lender.

I'm with G_M. Leave it 'til the mortgage is repaid then DIY.