Buy-to-let remortgage questions

denydoodle · 11 March 2015 at 2:10PM

Hi,

I have a 3 yr fixed rate buy-to-let mortgage that is due to expire in the summer. I have tenants on a renewing annual tenancy agreement who have been living in the property for 2 years.

Currently the property was bought and mortgaged in my sole name. When I bought it, it was intended for my father to live in and for him to pay me rent to cover the mortgage. So, at the time both my brother and I put money towards the deposit. My brother was not added as a mortgagee at the time as he lives in New Zealand, we purchased it in quite a rush and didn't want to delay/complicate things. I appreciate that at the time the morgage lender didn't know that the tenant was intending to be my father, nor that my brother gave me a portion of the deposit!

However, after a few months of living there my father sadly died, and we subsequently let it out via a letting agency to the current tenants.

My question is - when I remortgage could I put my brother onto the mortgage & and property deeds, so that if I die his interest in the property is recognised? Would it be straightforward as he is an overseas resident? Would the mortgage cost more?

Another suggestion that my brother made was to set the property up as a trust arrangement. But I have no idea if a trust can get a mortgage?! I assume this would be so niche that it would cost a fortune?

The other option would be to keep things as they are in my sole name but get something written in my will?

Any advice gratefully received.

Thank you

Foxy-Stoat_3 · 11 March 2015 at 4:17PM

Name your Brother in your Will and leave it at that. He will need to be in the UK in person to include him on a new mortgage and added to the Deeds, he may have to pay Stamp Duty it will cost you near 4 figures in legal fees, assuming your lender agrees for him to be included on the Mortgage.

If this was not a regulated BTL mortgage then you would of breached the terms of the mortgage if your Father was renting from you and lied about where the deposit funds came from, so probably best not to mention your second paragraph to your lender.