Buying house from parents

willbones

Hi

I'm wondering if anyone can give me a few pointers on my current mortgage situation.

I own an apartment that I have been trying to sell for about 3 years. I have an outstanding mortgage of £87K and have just accepted an offer of 82.5K. After fees etc, I'll need to make up the difference with personal funds.

Now, about 2 years ago, my dad purchased a house and that's the one I currently live in. He technically owns it, but its in mine and his name. I would like to get a mortgage on this house and have it solely in my name. He has about 80K loan secured against his own house that he used to buy mine.

I have contacted my current mortgage provider about getting a mortgage on the house to clear what I owe my dad, but they have rejected it - stating that would be a debt consolidation loan, blah blah.

I dont see the problem - dad owns my house, I want to buy it from him. Is it not as straightforward as him selling me the house, and me getting a mortgage on it? There are no debts or mortgages secured against the house.

System

I dont see the problem - dad owns my house

No you own it jointly.

but its in mine and his name.

As such the lenders would probably only ever consider lending against 50% of its value to buy the other owner out

willbones

We are both registered on the house, but he has paid for it outright. I pay him rent each month - the only reason i'm registered on the house is because we both thought it was the correct thing to do.

So how do we both own it? Simply by virtue of what's recorded with the land registry?

Mojisola

willbones wrote: »

We are both registered on the house, but he has paid for it outright. I pay him rent each month - the only reason i'm registered on the house is because we both thought it was the correct thing to do.

So how do we both own it? Simply by virtue of what's recorded with the land registry?

Yes, because that's the register of property owners.

willbones

Could I remove my name from the deeds of the house and then 'purchase' the house back from my dad?

willbones

I'm not trying to be evasive or dishonest - quite the opposite.

Let_Us_See

Could I suggest with your lack of knowledge and understanding you should speak to a mortgage adviser. Depending on your personal circumstances it might be possible, but you need someone to guide you in the right direction.