transferring mortgage

allo4

My friend couldn't get a mortgage and so his father in law got one for him however he wants to retire early and so doesn't want to keep the mortgage. My friend said that he would have to sell the house but still wouldn't be eligible to get a mortgage. Is it possible for them to transfer the mortgage to his own father without having to sell his house.

holly_hobby

The transfer of ownership and equity between parties is effectively a sale and disposal. So friends father would essentially be buying the property from FIL, so subject to SDLT (if in excess of 125k) and full conveyencing costs.

Thats if the guy's Father can obtain a mortgage to effectively repay the FIL allowing him to redeem the os mge.

Holly