Mortgage age related

fiirls

Had a meeting with LLoyds TSB bank yesterday looking to remortgage to consolidate some debts and make our financial situation easier. We joint own a property with my mother who is named on the deeds and she is on the morgage as name only which the bank insisted on 5 years ago. My father, who passed away recently, is also still named and was 83 at the time and my mother 67. Yesterday the bank said that my mother has to be removed from the mortgage as she is too old now at 72. How can we do this if legally my mother has to be on the morgage as she is named on the deeds. There is no problem with the morgage amount or LTV with the property. Dont want to remove mum from the deeds as it is her home plus would then have to pay the inheritance tax. Can anyone help?

ACG

You only pay inheritance tax in you inherit it or if she dies within 7 years of you receiving the property (either as a gift or at a discounted price) this reduces year on year though, so you would pay less tax if she died in 5 years time than if she died next year (sorry for the morbid post).

You will need to see a solicitor anyway to get it done properly there is no way of doing it yourself and being 100% sure you have it right, for something like this you may as well just save time and go straight to a solicitor...in my opinion anyway.

EDIT:
Im just wondering if a lender can actually tell you to take her off the mortgage...what will happen if you dont? I doubt very much they would get anywhere in court.

koexelek

Try the Ipswich Building Society.

Unlike virtually all other lenders, they do not have an upper age limit.

They are very, very slow at processing cases though

Wh05apk

koexelek wrote: »

Try the Ipswich Building Society.

Unlike virtually all other lenders, they do not have an upper age limit.

They are very, very slow at processing cases though

Quite a few of the smaller ones don't, Coventry I think is another.

Given Lloyds rates are not the most attractive, you may do better remortgaging elsewhere, speak to a broker who can find a lender who will accept your morther.

fiirls

Thanks so much for all the advice, our mortgage is with lloyds already but now they say nearly 6 years later mum is too old they cannot remortgage us with her on. They did not explain, not sure if their rules have changed but I would rather she was on the mortgage so will take some advice from a mortgage adviser like you say and go somewhere else especially if we can get a better deal. Is anyone interested or am I best to go somewhere local?

Thrugelmir

Your debts may be an issue. When the application reached the underwriters.