Changing person on mortgage

PianoCat

Me and my husband live with his parents in a house which has been divided into two living spaces.

We bought the house together – each couple selling their own house and putting the equity toward the new one, together with a mortgage.

Here is where it gets complicated. When we needed a mortgage the only persons with a steady income/were not retired were my MIL and her other son, who was still living at home at the time – so they got the mortgage together. My husband and I, and my father in law are not connected to the mortgage and I believe we are not on the deeds.

Fast forward a few years and we are looking to re-mortgage again to get a fixed rate – but my MIL just quit work without really thinking through the consequences.

Can we remortgage if she has no income? I'm not sure my brother in law's income is enough on its own. My husband now earns more than his brother so we were thinking of putting him on the mortgage. In ideal world my husband and MIL would be on the mortgage together as that is more in line with who has equity in the house. But if we cannot remortgage with her, as she has no income we were thinking of having my husband and BIL on the mortgage.

If we took one person off the mortgage and put my husband on instead what kind of fees would we be looking at? There would be solicitors fees, mortgage company fees, he would need to go on the deeds – is there anything I am missing?

Would there be a problem with stamp duty or income tax if my husband went on the mortgage instead of my MILor BIL? Would either of them get a tax bill?

Outstanding mortgage is approx £55,000 with 8 years left of a 15 year term (we have plans to pay it off within 5 years)
House is worth £400,000+
Husbands income £32,000 pa
Brother in law's income £19,000 pa

Mojisola

PianoCat wrote: »

Me and my husband live with his parents in a house which has been divided into two living spaces.

We bought the house together – each couple selling their own house and putting the equity toward the new one, together with a mortgage.

Here is where it gets complicated. When we needed a mortgage the only persons with a steady income/were not retired were my MIL and her other son, who was still living at home at the time – so they got the mortgage together. My husband and I, and my father in law are not connected to the mortgage and I believe we are not on the deeds.

So you gave away your money to your MIL and her son?

basil92

So your MIL and BIL own your house and you have no claim to it?

Thrugelmir

PianoCat wrote: »

Me and my husband live with his parents in a house which has been divided into two living spaces.

Did you obtain approval for the works?

Lenders will be concerned about the division and the obvious relationship between the parties occupying the property.

TrickyDicky101

Capital Gains Tax once brother disposes of his share is a potential expense.

Mojisola

When your BIL moved out, he would have become your landlord. Has he complied with all the laws and is he declaring the rent to HMRC? He should be paying tax on that.