Can this be done? Complicated situation..

EmmaB0751

Hi this is my first time posting so I apologise in advance if it comes across as a bit muddled.

My partner and I live in a house that was purchased on a morgage by his brother many years ago. The house is still on a morgage now as the said brother remorgaged it a few years ago when he got himself into a bit of debt trouble. We (my partner and I) pay everything related to this house (morgage/council tax/bills etc) and it is basically our family home that we live in with our two children (partner has also lived in it continuously since it was first bought).

My BIL lives in a flat in a different city to us. This flat is morgaged in my partners name, he (the BIL) is responsible for all the morgage payments and bills relating to this property.

Without going too much into detail BIL got himself into a few financial difficulties and this month dropped into conversation that he couldn't afford the 'service charge' for the flat so was leaving it to default for a few months until he could pay it. We've paid the money as obviously the service charge and morgage are in my partners name and so it would have been his credit that was effected not BIL.

What I am wanting to know is if there is anyway that they can basically transfer the morgage/deeds across to each other so that basically my partner is named as the owner/morgage for the house which we live in and BIL is morgaged/owner of the flat?


Or would they have to each 'buy' the properties from each other, thus starting new morgages and loosing out on everything they have paid in the past?

I hope this makes sense, thanks for any help/advice in advance.

Dave_Ham

You will need to sort out all seeing a broker as this is complicated..

My initial thoughts are:

They cannot simply transfer if not on the mortgage

They could be added to each others and then removed, although this will incur some costs and subject to many income, employment and importantly credit score issues.

Credit score is the biggie as assuming BIL may not get a new mortgage if he has been missing left right and centre..

Get all of your credit files and information and speak to a good broker..

And yes, this is complicated....

Good luck

EmmaB0751

I thought it wouldn't be as simple as what they said, I very much doubt BIL would get approved for anything currently as he did want to remorgage the house again at the beginning of the year (which we of course said no too but didn't stop him finding out if he could) and he got turned down.

I will show my partner your reply and we will take it from there.

Thank you very much.

Dave_Ham

It will depend upon the purchase price as to whether you would be better buying formally, although he can discount if needed or if you would be better being added and then remortgaged in sole name.

Flat will obviously need to stay in OH name and therefore income will need to be strong..

Any questions - do ask away although you cannot beat personal advice..

All the best

GMS

Do you have any idea what the mortgage balance is? How much is the flat worth?

EmmaB0751

Hi we don't know what the balance is on the morgages as my partner has always (stupidly from my point of view) let his brother deal with his finances, it was only when I moved in at the start of 2011 they started seperating their finances - they even had a joint account together until december last year until I pointed out that the BIL bad credit would end up effecting my partner in the end.

I do know the house is worth roughly £75k and the flat £44k.

Dave_Ham

At which point buy and sell as no stamp duty and would cost more solicitors changing names..

Good luck

EmmaB0751

Dave_Ham wrote: »

At which point buy and sell as no stamp duty and would cost more solicitors changing names..

Good luck

Thank you (again) much appreciated.

DVardysShadow

EmmaB0751 wrote: »

]

Without going too much into detail BIL got himself into a few financial difficulties and this month dropped into conversation that he couldn't afford the 'service charge' for the flat so was leaving it to default for a few months until he could pay it. We've paid the money as obviously the service charge and morgage are in my partners name and so it would have been his credit that was effected not BIL.

Without a doubt in the short term, you are doing the right thing by paying your service charges. If this is anything other than a short blip, you need to keep your accounts clean. You need to be doubly sure that they really are financially separated.

I suggest that immediately now, your partner takes over payment of all bills for his property and that you make sure that utility bills and council tax are billed to the occupier. Obviously you need to forward the difference in bills between the 2 properties to BiL . If BiL goes down, you may find your home repo'd and then you will need your credit to be good.

Make these moves immediately - there is no issue of a decision process on the part of any 3rd party - and when you have sorted this out, set about regularising everything in one way or another.