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Change ownership
Efrain
Posts: 2 Newbie
Hi all
A few years ago I got into a property buying scheme which didn't finish going that well. At the time I did not have a credit history so we agreed that 2 flats would be purchased under one of my best friend's names to get a better deal. The money for the downpays to the lender came out of my pocket. I know probably was not a very smart decision but I cannot change the past now.
The situation that I find myself at the moment is 1) I am paying taxes for the properties, 2) my friend appears as the owner in land registry and in mortgages, 3) the purcahse was very bad and at least one of the flats is in negative equity. Gladly the two flats are tenanted and at the moment the rent at least pays for the mortgage and management costs.
My friend is keen to transfer ownership to me and I am keen to take it even though I know that prices will take a while to recover. Is there anyway that he could transfer the properties to me with no money down? do you know a good property lawyer that can help? Overall, appreciate any advice that you have.
Efrain
A few years ago I got into a property buying scheme which didn't finish going that well. At the time I did not have a credit history so we agreed that 2 flats would be purchased under one of my best friend's names to get a better deal. The money for the downpays to the lender came out of my pocket. I know probably was not a very smart decision but I cannot change the past now.
The situation that I find myself at the moment is 1) I am paying taxes for the properties, 2) my friend appears as the owner in land registry and in mortgages, 3) the purcahse was very bad and at least one of the flats is in negative equity. Gladly the two flats are tenanted and at the moment the rent at least pays for the mortgage and management costs.
My friend is keen to transfer ownership to me and I am keen to take it even though I know that prices will take a while to recover. Is there anyway that he could transfer the properties to me with no money down? do you know a good property lawyer that can help? Overall, appreciate any advice that you have.
Efrain
0
Comments
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You would have to get a mortgage for the properties, and with a property in negative equity that is going to be no easy feet. You could try going onto the mortgage with him and becoming joint owner, and then doing a transfer of equity in the future to transfer the ownership to you.0
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"No money down". Yes. There is no need for money to change hands. That is entirely a matter for you and he to agree financially.
Your problem is the mortgage(s). No Transfer of ownership can take place without the lender's consent. He will need to pay off the current mortgage and you will need to apply for a new mortgage in your own name, and be accepted.
Even if you are acceped, it is unlikely the property will be acepted for a new mortgage if it is now in negative equity.
You might try asking the current lender if they would transfer the existing mortgage to you but you chances of this are slim.... to non-existant.
Speak to a mortgage adviser.0 -
ethank, G_M - thank you so much for your replies! any of you know a good mortgage advisor that I could ask.
Thanks0
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