gift of deed ??

bruceyboy_2

Hi, a little background first.... my parents are currently separated and have been so for 6 years but not yet divorced, my father lives else where.
I am now trying to buy my fathers share of the property. Which is around 40%.
They still have a joint mortgage on the property.
Can they give me the property though a gift of deed when they still owe money on it? which would help me get a mortgage as i don't have a deposit.
Or do they have to give me the deposit as a gift of deed? because they owe money on it.
Which ever way it goes they are both in agreement with this as its the only way. hope someone can help. thankyou.

DVardysShadow

If there is a mortgage on the property, you will not get a mortgage on the same property without either going on the original mortgage or everyone getting a new mortgage. And the existing mortgage will take precedence over any deed of gift.

bruceyboy_2

thanks for the reply, i'm planning to take on the outstanding mortgage debt with a new mortgage only in my name, as a first time buyer with the deposit given to me as a gift of deed. is this possible?

Yorkie1

I'm still a little confused.

Your parents jointly own the house - your mum owns 60% and your dad 40%?

You want to buy just your dad's share? Therefore your mum will continue to own 60%?

Will you be paying off the entire outstanding mortgage with your new mortgage?

I suspect that if the answer to all the above questions is 'Yes', then you may have difficulties. Your new lender won't be happy lending just on 40% of the house. Your mum would still be on the deeds and the lender won't be able to realise its investment if it needed to.

CLAPTON

basically the names on the deeds need to be the same as the names on the mortgage.

so if you and mum want to own the house jointly then you need to apply for a joint mortage either with mum's existing lender or a new lender.

whether that's possible depends upon how much the house is worth, how much mortgage your (jointly) need and your respective incomes