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Mortgage on part ownership?

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gd1010

gd1010 Posts: 3 Newbie

16 August 2014 at 2:10PM in Mortgages & endowments

Hi there,

I'm about to be transferred 40% of the family home for ongoing family living etc. and wanted to know if I'm able to take out a loan / mortgage against just the 40% I own to fund work on the house and future investments...

Any thoughts appreciated.

Cheers.

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Comments

amnblog Posts: 12,730 Forumite

16 August 2014 at 2:12PM

No, you cannot raise a mortgage against a proportion of ownership unless under a formal shared ownership arrangement (which this is not).

I am a Mortgage Broker

You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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gd1010 Posts: 3 Newbie

16 August 2014 at 2:13PM

Would I be able to take a loan out against it do you know?

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amnblog Posts: 12,730 Forumite

16 August 2014 at 2:26PM

No, a mortgage is the legal security of a loan.

I am a Mortgage Broker

You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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gd1010 Posts: 3 Newbie

16 August 2014 at 2:27PM

So it is in effect a passive investment I cannot use in any way apart from if we to sell the whole house?

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amnblog Posts: 12,730 Forumite

16 August 2014 at 3:15PM

gd1010 wrote: »

So it is in effect a passive investment I cannot use in any way apart from if we to sell the whole house?

In practical terms, yes.

I am a Mortgage Broker

You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Thrugelmir Posts: 89,546 Forumite

16 August 2014 at 4:10PM

Is the property currently mortgage free?

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This discussion has been closed.

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