Letter of Consent and Postponement by Deed

silly_moo

Hi All

I hope you can help

Our current mortgage deal is up so we're moving to another provider. We have been accepted on condition that we provide them with bank statements, utility bills etc. Also, my DH bought the house before we got married and is the only one named on the title deeds. As we want the mortgage to be joint, the bank said that I will need to sign a "Letter of Consent and Postponement by Deed" and the bank have asked us to look for independent legal advice re this. I don't mind going to a solicitor but just now I am not sure where the problem is and what I should be asking them.

I googled this letter of consent and it looks like I will have to agree that the bank would have priority over me in case we fail to make repayments. My understanding is that the bank will send me a form to sign so why should I speak to a solicitor? Or is it a solicitor's job to prepare such a letter?

Another option would be to add me to the title deeds but for some reason the bank advisor did not seem too keen when we mentioned this and said it would take too long. Do you know how much it would cost and how long it would take if we wanted to do this and whether there would be any tax implications? And whether I could sign this letter of consent now and get added to the deeds in the near future once the mortgage is in place?

kingstreet

When remortgaging into joint names, it is usual for a transfer of equity to be carried out to include the new party on the deeds as well as the mortgage.

This normally adds around £300 to the legal bill for the remortgage.

I take it this is HSBC? Only one of two mortgage lenders which allow more borrowers on the mortgage than there are names on the deeds.

I would not have a joint mortgage without being part-owner.

silly_moo

Thanks kingstreet

Do you know how long it would take to add me to the deeds? The bank implied it would take too long and if we wait we may not get the interest rate we were offered. It doesn't look like interest rates are going up any time soon so it's probably just idle threat.

Do you think our best option is adding me to the deeds now and postponing the start of the mortgage or is there anything else we should consider?

kingstreet

Once you have a mortgage offer, the rate is secure and you normally have around three months to complete.

The transfer of equity is quite a quick process once you have a joint mortgage offer and the solicitor can do this while handling the conveyance of the new mortgage.

Talk to a solicitor, who should be able to give you a good idea of how much and how long.