Please Help. My Name on Mortgage but not on Title.

Sunshine808

Please Help Me.

My story is this, I helped out friends by giving them my permission to include my name in their mortgage. However no Financial assistance was given on my behalf. After 3 years of my name on the Mortgage and the title of Land Registry they are now asking me to sign a TR1 giving them my permission to remove my name from the title of ownership of the property. In the lenders eyes when I apply for my own mortgage would they now class me as a First time or a Second time buyer now that my name has been removed from the title of the Land Registry? I ask this because they told me that because my name has now been removed from the Land Registry I will be considered as a First time buyer. Please clarify this.

As you may have noticed I am in a dilemma which are linked which each other and I want to make sure I make the right decision for me before I sign any other legal documents

Has my action of helping out friends hindered my chances of getting a better Mortgage as a First time buyer? If so how?

I so desperately need answers for the questions above before it jeopardise my chances in the future for applying for a mortgage on my own.

What pros and cons will I gain from removing my name off the Title of Land Registry TR1 and still have my name on the Mortgage?

How will this affect my chances of getting another Mortgage?

When applying for a Mortgage in the future will I be considered as a First time or as a Second time buyer now that my name has been removed from the Title of Land Registry ?

What are the advantages and disadvantages in this current property market for a First and Second time buyer?

With them asking me to sign a Land Registry TR1. Would it be in my best interest to do so or not? Because I have researched online and most of the forums and sites say it would be ideal that both names should appear on each document, i.e. mortgage and the title of Land Registry, but it never explains why. Can you please explain why.

I don't have any interest in their property all I wanted to do with the kindest of my heart was to help them. If things go south due to my credit score and property history what can I do or say to them for them to help me?

I would also like to know when applying for a mortgage will the Lender be requiring my previous mortgage application forms and mortgage contract of agreement?

Please advice me on what to do next.

Thanking you soooo much in advance for your kind cooperation and consideration in taking time out to read my dilemma.

Hoping to hear from you soon at your earliest convenience.

kingstreet

If you are party to a mortgage and ownership of a property, you aren't a first time buyer and won't be when you are removed from them.

Some lenders may treat you as a first time buyer when you haven't been a party to a mortgage for a year or three.

The end result is you'll pay a higher product fee. The rates tend to be about the same.

Make sure you are removed from the mortgage and the ownership. It would be rough indeed to find you are no longer an owner, but still retain the joint and several liability for the mortgage.

Mojisola

Sunshine808 wrote: »

After 3 years of my name on the Mortgage and the title of Land Registry they are now asking me to sign a TR1 giving them my permission to remove my name from the title of ownership of the property.

Why would you want to stay financially responsible for the debt but have no ownership over the asset?

Pixie5740

If your friends want your name removed from the title then tell them they need to remortgage in their own names to pay off the mortgage you are all named on.

As Mojisola says, why would you want to be financially responsible for a property that you have no claim to?

The_Druid

My advice would be:

Do not under any circumstances allow your name to be removed from the title deeds, until AFTER your name has been removed from the mortgage.

No matter how honourable and honest your friends are, accidents and illnesses happen, and you could end up responsible for 100% of their mortgage whilst having no right to sell the property or to get any of your money back from it.

Getting another mortgage for your own place is a minor matter compared to this potential disaster!

Jenniefour

The_Druid wrote: »

My advice would be:

Do not under any circumstances allow your name to be removed from the title deeds, until AFTER your name has been removed from the mortgage.

No matter how honourable and honest your friends are, accidents and illnesses happen, and you could end up responsible for 100% of their mortgage whilst having no right to sell the property or to get any of your money back from it.

Getting another mortgage for your own place is a minor matter compared to this potential disaster!

100% agreement with this and what other posters have said on same issue. This answers your question about why it is important that your name gets removed from the mortgage first. In effect, this means your friends will need to evidence that they now have the means to take on a mortgage for the amount outstanding on the property in their names only. On no account transfer ownership of the property to them until this is sorted out.

Do your friends have any understanding of the possible implications of what they are asking?

Reading your post again I fear that you may have already signed the transfer document but I'm hoping that's not the case. Your friends are either incredibly naive - in which case they need to get themselves up to speed pronto - or they're taking you for a ride big time.

Do let us know if you're clear now on what's needed and whether you need any more help. At the end of day it may mean you can't come off the mortgage (unless they can prove they can afford it on their own) so no way you should effect any transfer of ownership as this is your "get out of jail card" if push comes to shove. Even if that means post-phoning your own plans to buy your own place. Too much at stake here.

xylophone

Have you or haven't you signed and submitted the TR1?