Sole Mortgage, Joint Ownership - A2 Indirect Legal Charge

fionabliss

HSBC and our solicitor have reached a stalemate on whether my name can be put on the deeds because the mortgage offer is only in my husband's name.

It's especially frustrating as this has just unfolded as we're getting pretty close to contract exchange.

HSBC has repeatedly said that they are happy for my name to be on the deeds. They claim that it doesn't matter that my name does not appear on the mortgage offer because it does appear on their system. According to HSBC, the only thing that needs to be done is for our solicitor to download from HSBC's portal a form called the "A2 indirect legal charge" and an additional form to waive my rights in case of default. Once I sign these forms we could proceed with the purchase of the property as joint owners. However, our solicitor has persistently claimed that the only way my name can be on the deeds is if my name is on the mortgage offer. In order to do this HSBC would have to either issue us with a "third party mortgage" or a joint mortgage. The latter would mean we'd have to start the process all over again. (I believe a "third party mortgage" is one which says explicitly that one person is liable for the mortgage but two people own it).

Now from what I understand, HSBC is one of the few lenders which allow for the arrangement of sole mortgage and joint ownership. So perhaps my solicitor simply never came across this issue before. The solicitor further highlights that whatever forms these are that I need to sign, pertain to drafting a "deed of trust". If we choose to go down this route my name wouldn't appear on the deeds but I could "own" the property indirectly by way of apportioning part of the property in a trust for my benefit. HSBC on the other hand claims that there is no need for a "deed of trust" as my name can go on the deeds.

Could someone please shed light on how this "A2 Indirect Legal Charge" works and how you managed to be joint owners of the property even though only one person was named on the mortgage?

Thank you in advance for your help!

fionabliss

amnblog

Your solicitor should be 'shedding light' on this. You should not have to resort to pot luck on this forum.

kingstreet

fionabliss wrote: »

Now from what I understand, HSBC is the only lender which allow for the arrangement of sole mortgage and joint ownership. So perhaps my solicitor simply never came across this issue before.

Corrected that for you.

Your solicitor is incorrect. Tell him kingstreet said so.

https://forums.moneysavingexpert.com/discussion/5091458

fionabliss

I'm grateful for the replies.

It's been very frustrating because we've had to act as the go-between for HSBC and the solicitor. It boils down to the solicitor not wanting to take the word of HSBC's staff and HSBC's staff being puzzled at what the exact issue is.

The solicitor is not denying that sole-mortgage & joint-ownership is possible but that my name must appear on the mortgage offer for this to happen. Whereas HSBC says it's for the solicitor to arrange by way of downloading and getting me to sign the A2 Indirect Legal Charge. My solicitor does not appear to have heard of this piece of paper and has presented us with two options: a) proceed with the current mortgage offer and have one name on the deeds, b) get a mortgage offer reissued with both names on it (i.e. a joint mortgage). Ultimately it's up to us to sort out as the solicitor feels he's in the right.

kingstreet

Option c) get another solicitor.

If you were named on the mortgage offer, it would be a joint mortgage and a joint purchase. Hence, the issue would no longer be an issue.

Thrugelmir

What's the source of the deposit/equity that is being injected into the property? Who do the funds belong too?

Who are you communicating with at the HSBC? Their legal department?

fionabliss

Thrugelmir wrote: »

What's the source of the deposit/equity that is being injected into the property? Who do the funds belong too?

Who are you communicating with at the HSBC? Their legal department?

The deposit comes from our savings accumulated since our marriage.

We are communicating with the mortgage team at HSBC. We have now got our solicitor to write to HSBC's legal department to get clarification.

Of course had we known this issue would arise, we would have gone down the joint mortgage route. However, we were repeatedly told by HSBC during the application process and subsequently, that they take no issue with sole mortgage, joint ownership. The issue is that the solicitor does not feel the paperwork that was sent adequately reflects HSBC's position.

bathgirl99

Hiya,

I am in the exact same situation as you but a little further behind. Having spoken to several lawyers, who said the same as your lawyer is saying, I found one who is familiar with HSBC's stance here and has confirmed a indirect legal charge where you both are on the deeds but only 1 on the mortgage.

I quote: "You will have to waive your rights in the event of a default but if that happened then the bank would repossess the house and pay out the balance to you both equally at which point the deed of trust or as they call it the declaration of trust would come into play."

If you would like the name of my lawyer, please let me know.

I am at the stage where we are about to have our appointment and worried that though the MIP was approved, they might change their minds. Fingers crossed....did you come across any other lenders who offered this service on your journey please?

kingstreet

There is no other lender offering this.

bathgirl99

Oh really? How do you know? Why are HSBC the only ones?

kingstreet

bathgirl99 wrote: »

Oh really? How do you know? Why are HSBC the only ones?

Seriously? I have no idea why HSBC does this. Ask them.

Having spent thirty years studying lenders and their criteria I'm aware of who does what and who doesn't.

It's known as "research."

Besides which everyone on here thought no-one would do this, until I took the trouble to find out a few weeks ago by speaking to a solicitor I know...