Mortgage to buy out partner's share - we aren't splitting up

saverjules

My partner and I own a property together with no mortgage. He has an 11% share.


Circumstances mean that we have decided the best thing is for me to buy him out of the house although this is not due to relationship breakdown.


However, I am staggered that I got turned down flat for a mortgage by Santander today as their policy is not to lend in a buy out situation unless the other party moves out (i.e. relationship breakdown).


We already have a deed of trust and wills around ownership and these, along with the deeds for the property would be amended to make it clear that there was no beneficial interest.


Am I likely to get this response from all the main lenders? It is such a small amount I thought it was just a formality, I am now quite worried.


Any advice would be appreciated,

kingstreet

Some will do this, some won't.

Someone continuing to live in a property they have "sold" creates legal issues in the event of lender repossession.

The size/amount is nothing to do with it. It's the principle involved for the lenders who don't like it.

It's the reason many people "buying" a property from a parent who will continue to live in it sees similar issues.

ACG

Is it due to your partner having or potentially due to get bad credit/CCJs etc? It may not protect you from anything and it would be worth getting legal advice.

Thrugelmir

saverjules wrote: »

However, I am staggered that I got turned down flat for a mortgage by Santander today as their policy is not to lend in a buy out situation unless the other party moves out (i.e. relationship breakdown).

Squatters rights. A complication for lenders in the event of repossession.

Likewise creditors can have the transaction reversed under the Insolvency Acts.

saverjules

Thanks all for the replies.


There is no bad credit on either side.


Any ideas of how to progress this - e.g. lenders to try

foxy-stoat

Depending on the values maybe you could take out a personal loan and super balance transfer credit cards - say its for home improvements to something. You will need a thousand or 2 for legal fees etc.

Will your partner be paying you rent afterwards and assume you will never marry them as well.

Detroit

Thrugelmir wrote: »

Squatters rights. A complication for lenders in the event of repossession.

Likewise creditors can have the transaction reversed under the Insolvency Acts.

Why would he have squatters rights? I thought a squatter was defined as someone occupying without the owners permission, so he wouldn't be a squatter while living with OP.
Surely if he became classed as a squatter in the event of repossession, based on his occupation without the new owner, the bank's, permission, he would not have occupied the property 'as though he was the owner' for the requisite length of time to establish any rights?
I'd have thought the time he lived with the OP wouldn't count as he was not a squatter during this time?

DavidT67

OP needs to state what they are hoping to achieve by the transaction.
Otherwise, we are all just guessing.

Lenders aren't going to lend without understanding the rationale either.

saverjules

Hi.


My partner has (grown up) children and wants to pull the money out of the house to help set them up, I am happy to buy out his share to do this, I have no children.

warby68

Joint mortgage?

He leaves his 11% to you rather than his children?

pollyanna24

Why not just say he is going to move out?

When you've got the mortgage, what are they going to do?

I bought my brother out earlier this year and was asked a similar thing (him moving out). I said he was moving out, but not immediately. There was some form we both had to sign (I can look into what it was) where it gave up his rights once the house was in my name.