Removed from Deeds but remain in property ?

steviep1977

Hi,

a friend of mine lives with her mum, they are both currently on the mortgage.

She wants to remortgage and remove mum (transfer of equity) so that she can extend the term (resticted due to mums age).

Mum will still live there. There will be no money changing hands just simply removing her from mortgage/deeds.

can you see the lender having an issue with this ?


Thanks
Steve

bigadaj

Probably, and the sums would have to be done as there will be cost in undertaking this. Removing one party effectively raises the risk of the mortgage, and extending the term would suggest they are struggling anyway, more details on the exact situation might help.

Senior_Paper_Monitor

..... and BIG WARNING .... there are a number of other potential issues here, primarily deprivation.

Both parties must take professional guidance independently, with full disclosure, on the proposed transaction.

steviep1977

Hi thanks for that.

Incase you're interested, Nationwide said if mum is coming off the mortgage see can't live at the property.

Something to do with gifting her share of the equity causes problems if daughter was to be reposessed they would struggle to get mum out of the property as she has rights.

Senior_Paper_Monitor

Absolutely correct - and although in principle this could be documented, provided the correct processes were followed, to overcome that problem it is totally understandable that the lender doesn't want to go that route.

It is possibly doable with a good adviser - but a good adviser will also want to ensure that the mother is protected correctly.

The potential for disaster (in years to come if not immediately) in this sort of case is considerable.

The_J

Pretty sure this is impossible because of the aforementioned overriding rights to the property.

This hasn't been tested in law I don't think but they are being careful.

Yorkie1

Mum should also be advised to get independent legal advice. By this proposed course of action, she would have no right of recourse if OP decided to turf her out - no legal right to live in the home.