Joint Mortage to sole mortge

MarkyMarkD

Simples.

Take out a buy-to-let mortgage for the existing property, as that is what you want to do with it. You will only be able to borrow up to 75% (some lenders) or 85% (few lenders) of the current value. For a BTL mortgage your income is not particularly relevant as long as (for most lenders) it is sensible - which yours is, but your wife's isn't.

You can't take out the BTL mortgage is her sole name, because she doesn't earn enough for most lenders.

But you can declare the ownership of that property to be other than 50:50 - say 99:1 in favour of your wife - which would allocate most of the rental profits to her at her (presumably) lower tax rate. I assume that is what you were after?

http://www.property-tax-portal.co.uk/taxquestion20.shtml refers to this issue.

Then buy your new residential property with a new mortgage in joint names with your wife, using both incomes.

By the way, you cannot simply let out your existing property unless you get permission from your lender - which will likely mean that they increase your interest rate.

aayush

yes but that not help me as depoist can not be met with the amount given by lenders so does it mean i can not transfer the mortgage to her name alone on present prop ?

aayush

hi can you not help me any further

MarkyMarkD

If you haven't got enough cash to cover the 15%-25% on the existing property, and the 5%+ on the new property, then there is no sensible way to extend your credit, no.

You can't borrow more money than the property values will support.

And presuming that the existing mortgage is at a high LTV - and it sounds like it is - you don't sound like you're in a financial position to expand your property empire.

aayush

thank you marky mark d

Well as you can see from my original question i just wanted to change names on mortgage from joint to sole thus i may be able to go for larger prop as have heard this is one way to get the unit and deposit is not large


can you advise of a way and what o say to present lender to see if the agree to do this

Emmzi

you do not have enough income or deposit to go for a second property so you are stuck until a) you have more income or b) you have more deposit. Or get a guarantor. (Parents?)

I very much doubt you will be able to get what you want, the way you want it, and that you are going to drive people mad asking the same question over and over by the looks of it!

angelsmomma

aayush wrote: »

thank you marky mark d

Well as you can see from my original question i just wanted to change names on mortgage from joint to sole thus i may be able to go for larger prop as have heard this is one way to get the unit and deposit is not large


can you advise of a way and what o say to present lender to see if the agree to do this

Who have you heard this from, your wife has no income so can't have the mortgage transferred to her

aayush

well if can trf from joint name to single then i can put my name forward to share ownership scheme on my sole income

MarkyMarkD

As others have said, you cannot increased your family indebtedness simply by transferring your existing debt to the partner with no income because:

(a) the original lender wouldn't allow it on her income;
(b) the original lender wouldn't (likely) allow you to let the property on the current rate, and may not be happy with her as the borrower in any case; and
(c) the lender on the new property will look at your joint financial commitments when assessing the application as you are financially linked by your past joint borrowings.

Paul_the_Painter

Hi aayush,

Do you have some background to your question? We often find that the question someone asks, is not really the question that needs answering!

You keep saying that everything would be fine if you could transfer the current mortgage into your wifes name only. That is not going to happen, unless she has an income. Banks do not care WHO pays the mortgage, just that the person who applied for the mortgage can afford to pay it - your wife has no income, therefore she can't afford afford to pay it.

Your response to the other posters that have pointed this out, is to say that you will continue to pay the mortgage - that's wonderful, but the bank doesn't care, or more to the point they do care, but will only take your salary into account if you are on the mortgage.

Why do you want this new flat? Do you want to rent it out, or move into it?

How much is your current property worth, and what is the amount of the outstanding mortgage?

How much extra deposit cash do you have available?