Transfer of Equity to Sibling?

Vobill

I'm in the process of buying out my ex-fiance. Half of this money is coming from my savings and half is coming from my younger sister's savings (who will also move in to the property - she currently lives with her Dad). I will therefore then 'own' 75% of the property and the other 25% will be my sisters.
In terms of mortgage payments, to stay at 75/25%, will my sister only need to pay 25% of the mortgage payments every month? I can't work it out.
Also, me and the ex-fiance are 3 years in to 5 year mortage, what sort of transfer of equity/shared ownership will this come under please (bearing in mind the 75/25 split)? Will we have to do a new mortgage together and end the old one or is this a question for my lender?

Thanks in advance x

foxy-stoat

You will need a Deed of Trust drawn up which confirms the percentage split in the entitlement to the equity, should you ever sell. How you work out the mortage payments is up to you both to agree, along with any repairs or work that the property may need.

If your sister will be on the mortage then you both will be equally liable for the debt so the lender wont care about the split in the mortgage payments as long as the full amount is paid every month.

Your Ex will need to sign a transfer of equity over to you, for the consideration that you will pay her, you both will need legal advice there. Your lender will sort out a new mortgage, if you meet their affordablilty critera.

Not sure what you mean about :
"what sort of transfer of equity/shared ownership will this come under please (bearing in mind the 75/25 split)?"