What are the implications?

starburst12

Is this possible?

My partner purchased a property in 2011, and the mortgage is just in his name only.

However, we have since got married and we have kept the mortgage just in his name. We both live in this property.

I have a property (just in my name) of which I rent out, there is a current BTL mortgage on the property.

Is this possible? Can I change the mortgage my husband has solely into my name, if so what are the implications?

Your advice would be much appreciated.

Thanks

kingstreet

What are you trying to achieve, by doing this?

Basically, he would be selling you the property and there would be potential stamp duty implications, as well as the usual costs.

I can't see his lender being willing to add you and take him off, so I suspect a new mortgage application will be required.

holly_hobby

If this is in connection with an impending or proposed bankruptcy petition, then its not the answer I'm afraid.

Bit more meat on the bones as to the underlying reason, and as Kingstreet has asked, will enable us to give some specific and relevant guidance.

Hope this helps

Holly

starburst12

Hi Holly and Kingstreet

My husbands mortgage has 16 years and 1 month left which would take him to the age of 72 and the repayments are 680.00 per month currently until 2015, as I am only 39, what I was thinking was if it went into my name the term could be extended and therefore the repayments would be lower, thus enabling us to add to our savings.

The outstanding amount on the mortgage is 103,000.00 the property is worth say 160,000.00.

Hope this helps

Many thanks

holly_hobby

Hi,

What term do you want ?

Do you have any income of your own ? (independent of rental income from your 1 BTL unit which is mortgaged)

And would that be enough (when taking into account other commitments) to support the mortgage on its own ?

As this is what any lender will assess your affordability on.

There are several possible solutions, depending on the variables, including seeking a lender that doesn't have the upper 75 age ceiling (income and status permitting), of which there are a couple, and which will allow your hubby to remain on the mge and deeds if his income is needed/you dont have any acceptable/enough of your own.

I would suggest sitting down with an experienced whole of market mortgage broker, taking with you your income details, inc hubbys, copy of your credit records (experian, equifax, callcredit), and seeing what they can do for you, which when coupled with a 64% LTV (103/160), I do think there will a home for this enquiry.

Hope this helps ... good luck

Holly xx

ValHaller

starburst12 wrote: »

Hi Holly and Kingstreet

My husbands mortgage has 16 years and 1 month left which would take him to the age of 72 and the repayments are 680.00 per month currently until 2015, as I am only 39, what I was thinking was if it went into my name the term could be extended and therefore the repayments would be lower, thus enabling us to add to our savings.

The outstanding amount on the mortgage is 103,000.00 the property is worth say 160,000.00.

Hope this helps

Many thanks

Rather than taking on ownership on your own, perhaps you should be seeking joint ownership, which if your income is reasonable, might give you the extended term you require.

holly_hobby

ValHaller wrote: »

Rather than taking on ownership on your own, perhaps you should be seeking joint ownership, which if your income is reasonable, might give you the extended term you require.

The max term, where both incomes are reqd, will be based on the age of the oldest applicant - hence as suggested they seek the few lenders that don't have the upper age ceiling (subject to status of course) .

OP, thanks for the msg, your income is a tad low (at a reqd single multiple in excess of more than 4.5 x).

So, you may want to consider releasing equity from the BTL unit (subject to the lenders rental income stress test and max LTVs of course). And although you will fall under the min earned income of some lenders, there are providers out there whom will consider the business (and interest is tax deductable subject to equty release maximums).

To which this route, may permit you to reduce the os mge debt in HUBBYS name (and monthly payments), or permit you to take position as the main mortgagor, allowing the affordability and max term to be based on you and your sole income (also permitting hubby to remain on the mge/deeds).

Its a little too complex to really go into here, and as suggested above, I suggest you pay a visit to a decent broker whom will guide as to the best route to achieve your objectives.

Hope this helps

Holly x

starburst12

The term I am looking for is 20 years, but would Santander give me the term if my husbands name is also on the mortgage and his age?

Many thanks

holly_hobby

There max age for new business is 75.

But as an existing customer, and if his income isn't needed (if the mge is recduced for example), its possible, you'd need to speak to them for further guidance, and there is no gte.

If his income is needed (ie you don't reduce the os balance from the BTL unit), then the LTV being under 75% may help ... again it'll be on a case by case risk based assessment and decison, and entirely at their discretion, but be mindful they are pretty rigid on the 75 age for new business, so don't expect a mircale (esp if there are no current arrears/repayment issues).

You will also have to declare your retained property (the BTL) which will be factored in.

Hope this helps
Holly

ValHaller

holly_hobby wrote: »

ValHaller wrote: »

Rather than taking on ownership on your own, perhaps you should be seeking joint ownership, which if your income is reasonable, might give you the extended term you require.

The max term, where both incomes are reqd, will be based on the age of the oldest applicant - hence as suggested they seek the few lenders that don't have the upper age ceiling (subject to status of course) .

And of course, it is entirely a non starter for OP to take it all on herself if her income is not sufficient.

As an aside, I always feel that any query here which starts with the premise of just one partner taking of ownership and the mortgage is starting from the wrong place. It really is a last resort option in my mind, to be considered after joint ownership has been shown to be a non-starter.

holly_hobby

ValHaller wrote: »

And of course, it is entirely a non starter for OP to take it all on herself if her income is not sufficient.

Err yes ... i did say that ...