Transfer Mortgage to Sibling

ssiddiqui81

Hi,

I am a newbie hoping you can help.

I am currently tied in a joint mortgage with my brother. We bought a property together in 2005. We were both single at the time and are now married. I am renting privately with my husband, and my brother and his wife are living at the property I jointly own with him. I don't pay towards the mortgage as I dont live there. The whole reason I got on the mortgage was because he couldn't buy on his own.

Basically, our mother paid the £40k deposit on the flat, I haven't paid anything towards the mortgage as I've never lived at the property. My brother's been paying the mortgage since we bought it. The equity in the property or money isn't a problem. I don't want any money out of the property and my brother only wants his share that he's paid in to it, less the interest.

The problem we have is this... We both want to get out of the joint mortgage as we both want to buy our own places. My sister who is living with my brother, his wife and our mother has said she is more than happy to take on the mortgage. The question is, can we transfer the mortgage on her name? If so, does one of us (me or my brother) have to remain on the mortgage or can my sister be the sole party to remain on the mortgage? I hope that makes sense.

If both my brother nor I want to stay in the mortgage do we have to 'sell' the property to our sister and she has to 'buy' it via the proper channels? If so, will we need to pay for solicitor fees, searches the whole malarky just to have her as the sole mortgagee or can we do the transfer directly with the mortgage lender and just involve the solicitor with the change of name on the deeds etc?

Sorry to sound so thick, I have thought about it so much that nothing makes sense any more.

Thank you for reading this far.

S

l33na

If your brother can afford the mtge on his own now you can get taken off the mtge - you will need solictors to have your name taken off the deeds though.


Whether a third person can take over the mtge on there own(your sister/mother) I do not think that is possible- as they will need to prove they can afford a mtge. This way people who were selling due to being unable to afford a mtge would be able to transfer to a person(buyer) avoiding all fees for the fat banks.

ssiddiqui81

He can afford it on his own now, plus my sister works for a bank and she has very good credit ratings as per her credit check online. I managed to book an appointment with a mortgage advisor at the bank today so I will find out more on this. I will keep you updated , thank you for replying.

S

holly_hobby

This is a transfer of equity.

In order for your mortgage lender to release you from the mortgage commitment - your brother's income shall have to be sufficient to service the mortgage on his own.

As will your sister (if transferred/sold to her), whom shall also have to satisfy the lenders normal status & income checks.

There will also be stamp duty (on pch of share) to consider.

Presume all of the above will have been discussed by the mortgage adviser if todays meeting.

All of the above also incur invovlement of Solicitors fees and disbursements.

Hope this helps

Holly