Can my wife and i take her mother off the mortgage

mtphotos

I and my wife are currently renting a house with our two children aged 7yrs and 3yrs, my wife before we meet took out a mortgage on a two bedroom house with her mother because her mother is due to retire and live with my wife’s grandmother and due to the fact since we had the children my money is used to pay half the mortgage all three of us agree I and my wife should take over the mortgage and take her mother off.
We are not sure how or if we can do this any advice would be much appreciated.

Meeper

You should visit a mortgage adviser who can assist you in this situation. There will need to be a transfer of equity transaction, which will also require a solicitor to be more involved than normal, so don't go for a lender who has "free legal" services, as the transfer won't be included and you will have to pay a lot more than normal for it.

mtphotos

Thanks for the reply

Butterfly_Brain

It can be done my DH had an ex-girlfriend taken off of a mortgage that he held with her, it was done through a solicitor and wasn't very hard but it wasn't cheap. I would advise getting quote from lots of different solicitors before you commit to one because the prices can vary by quite a substantial amount.

holly_hobby

You really only need to seek the services of a mortgage adviser if you also want to change your mortgage lender at the same time.

If you want to reamin where you are, then in the first instance approach your current lender, who will assess whether MIL may be removed from the morgage, and will also include a full credit and status check n yourself , if you are to be added to the mortgage).

If the lender is agreeable, then a solicitors services will be reqd to effect the TOE (circa £300+ depending on where you are), there may also be a lender admin fee.

If you choose to change mortgage lender altogether (check there are no, or the sum of, early redemption pens that may apply), than the whole thing will be a new application (by yourself & spouse) with your replacement lender.

With all parties to the mortgage subject to full credit and status checks by the new lender. With regards to MIL, she will be removed from the property deeds, and replaced by yourself as part of the conveyencing process with this process organised by your Solicitor.

As already advised this falls outside of the free free remortgage remit - so if agreeable with the lender, you will have to fund the TOE as a seperate issue to the basic convenyencing with the solicitor OR simply choose a product that does not have fee free legals (but probably a more competitive interest rate).

Either way there will be a solicitors bill to find in the circumstances.

Hope this helps

Holly

Oldernotwiser

Does your MIL claim any means tested benefits because, if she does, she could be seen as having disposed of a capital asset (Google "Deprivation of Capital") and assessed as if she still owned it. This could also be the case if she wanted to make a claim in the future.