Part transfer of deeds and buy to let mortgages

andyd2604

Ok hello everyone I hope you can provide answers to the 2 questions I have for you

My partners mother wants to move and is selling her house, she wants to buy a second property that her daughter and grandchild can live in.

She wants to move into the property that her daughter currently lives in (with a mortgage) property has negative equity its sort of like a flip where you swap houses with someone where only one has a mortgage but...

1) can mum's name be added to the title deeds of the property whilst daughter is solely responsible for the mortgage? Can mum have 100% of the title deed yet daughter have the mortgage?

2) can mum buy a house for her daughter with a buy to let mortgage? or will she have to do a 'normal mortgage' based on income (LTV is c70%)

many many thanks for your help!

libf

Sounds like a case for a broker.

andyd2604

libf wrote: »

Sounds like a case for a broker.

yeah I;m getting one of those booked, i've got my teeth into it and am looking for conformation just so I am absolutely clear!

Thrugelmir

1. No it's not possible.

2. Yes it's possible. As the property is being let to a close family member the mortgage would be regulated. Not all lenders underwrite regulated business. Which limits your options.

kingstreet

In the case of a regulated BTL, the mother's income will determine affordability, not the rental income assessment.

If she is young enough for an affordable term and earns enough to justify the amount to be borrowed, it may be possible.

On the first point, this is not going to be possible. Best mother could hope for is being added to ownership and mortgage, but not one when not the other.

andyd2604

thanks for your advice people, this was how I read it
1.) no not without being responsible for the mortgage
2) yes but is based on her income
glad you boith confirmed that

to add is it easy to get say 50% of a property signed over to her mum? I presume not, but a joint mortgage could be issued in both names on the one property.

final point is the buying a property through a Trust still an option or has the loophole been closed?

kingstreet

Liability for a mortgage is joint and several. There is no "your half, my half."

Buying through a trust? Yes, as long as you don't need a mortgage.

getmore4less

Step back to basics

How much cash will be left if both house were sold.

Whats the value of the two houses that they will end up with(One being a swap).

whats the income of the intended occupiers of each house.

Why is normal ownership of each not possible?

then look for solutions.