Joint house with parents and getting a mortgage when they are over 75

viscount_one

Hi,

I have looked through the boards but cannot seem to find a similar situation.

My wife and I entered into a shared ownership of a property about 4 years ago with my parents (they signed 50% of the property to us). At that time we got a mortgage for 12 years (20% LTV) with the aim of aggressively paying it off.

We are now out of any tie in periods but feel that we could do with some additional cash for renovations and that our aggressive strategy is actually too much for us.

I have been looking to extend the mortgage in both amount borrowed and also time but I have ran into a brick wall in the fact that my parents are in their late 60s and the banks will only agree a mortgage for 8 years as by that stage the eldest person on the deeds will be 75.

My parents are both retired and do not really contribute to the mortgage financially, it is my and my wife's salary that pays the bills. (There are technical and legal contributions to the support of the house that my parents pay, which are no relevant at this time.)

Could so one please advise of there are any companies that will focus on the youngest named person on the deeds, rather than the eldest?

Why do mortgage providers focus on the eldest? (Just curious, as I cannot see much logic in this!)

I appreciate that legally we can change the deeds again so that only my wife and I are named, but I am reluctant to do this as I feel I would be cheating my parents out of their home.

Any assistance would be gratefully received!

Thanks

Vis.

holly_hobby

The reason why lenders now base the mge on the oldest age, is further to tighter lending principles and that all mortgagors are jointly and severally liable to mge repayments (obv your parents income is from retirment provision and/or state funded assistance , which can be an issue for various lenders).

You have stated that although their income is not required for affordability, the age is restricting your mge app, but that you prefer not to remove them for the property deeds.

The only suggestion I can make is to have a chat with HSBC and Barlcays - they are they only 2 lenders I know of who do/or did - permit parties subject to the deeds, not having to be party to the mortgage (hence your max age prob will be eradicated if the app is made in your own & spouses name).

Maybe worth a call ?

Other than that, generally mortgage lenders will require all those named on the deeds to be party to the mortgage, and there you have your age issue again (oh .. try Yorkshire BS too - they at one time did not have a max age at redemption - although this may have been amended post merger with Chelsea BS

Hope this helps & good luck

Holly

viscount_one

Hi Holly,

Thanks for your response, I will give HSBC / Barclays a call. I have tried Chelsea BS a call already and they were unable to help.

Thanks

Vis.