On Deeds, but not on Mortgage?

pollyanna24

I own a house with my brother.

He wants to move out, but I can't afford to buy him out, but I can afford the mortgage by myself.

Is he able to come off the mortgage in order to be able to get another one for where he wants to live, but stay on the deeds so that he will get his share when I eventually sell or raise the money to buy him out?

Voyager2002

You can try, but the mortgage lender is unlikely to agree (depending on whether your share of the equity would cover the total amount of the loan).

TrickyDicky101

Voyager2002 wrote: »

You can try, but the mortgage lender is unlikely to agree (depending on whether your share of the equity would cover the total amount of the loan).

This is wrong - the lender won't agree period (due to problems repossessing the property). OP, you won't be able to do this I'm afraid.

pollyanna24

The only reason he wants to stay on the deeds is to get his share out of the house when I sell (he sees it as an investment, plus I can't afford his share of the equity).

Is there any other way around it then? I don't understand the problems repossessing the house though, what does that mean?

pollyanna24

Or is another way around it, just to put the house all in my name on the deeds (are you allowed to just take a name off the deeds?) and then create a Trust Deed saying that my brother has a certain amount of money in the house?

mrginge

pollyanna24 wrote: »

The only reason he wants to stay on the deeds is to get his share out of the house when I sell (he sees it as an investment, plus I can't afford his share of the equity).

Is there any other way around it then? I don't understand the problems repossessing the house though, what does that mean?

If he came off the mortgage but was still named on the deeds and you then stopped paying the mortgage, how would the bank repossess the house when he owned half of it?

mrginge

pollyanna24 wrote: »

Or is another way around it, just to put the house all in my name on the deeds (are you allowed to just take a name of the deeds?) and then create a Trust Deed saying that my brother has a certain amount of money in the house?

The lender won't allow him off the mortgage unless you can support it on your own. That effectively means you have to apply and be approved for the mortgage on your sole income and affordability. It isn't enough to say you can afford the current level of payment.

What's the mortgage and what's your income?

pollyanna24

mrginge wrote: »

The lender won't allow him off the mortgage unless you can support it on your own. That effectively means you have to apply and be approved for the mortgage on your sole income and affordability. It isn't enough to say you can afford the current level of payment.

What's the mortgage and what's your income?

We were hoping to do this in just under two years time when the mortgage will be approximately £85,000.

My income is £27,000, but I only work part time. If I was to go back full time, it's more in the region of £36,000.

TrickyDicky101

What's the value of the property? Do you intend to go full time again?

MonkeyDr

Hi.

I currently have a mortgage with HSBC where I am the only person on the mortgage (which was assessed on my income etc alone), but not the only person on the deeds.

When we first arranged it (4 years ago?) both parties had to see a solicitor and my co-owner had to sign something which basically said that the lender has first charge over the property in the event of my default on the mortgage payments. Ie. my co-owner wouldn't be able to stop them repossessing. But they trust me, and of course I have paid everything in full on time.

We re-fixed about 2 years ago and the lender with the best rate (tesco) wasn't interested, but HSBC had a v good rate anyway so we were happy to stay with them.

I've seen a few people say on here that this isn't possible, but it certainly was not that long ago...

pollyanna24

This occurred to me last night. That I could get a charge put against the property. I don't know much about them, but know that it's a loan or similar secured against the value of your house.

I will have to look into this further. Thanks.