Advice please

swinterton

I have a mortgage on a property with my sister that she lives in, I do not live in this property at all, we did this 3/4 years ago as an investment for us both. My sister lives in the property and pays the mortgage, and all bills, so I have nothing to do with the daily running of this house, I'm just on the deeds and the mortgage. Now the problem is my circumstances have changed and I now want to buy a house and get a mortgage.
All mortgage adviser,s have told me I cannot have any more money as I am mortgaged to max(house with sister) the lender will not remove my name from the mortgage even tho my sister pays it all, as they say I am responsible for all the mortgage if my sister cannot pay.
I really cannot just throw my sister out and sell it as my sister will have nowhere to go!
What are my options please?
My parents have said they would release equity in there house to help..is that an option.? They are retired, could they be garantors for a mortgage, could I be removed from the existing mortgage, but still remain as a guarantor for my sisters house?
Sorry for all the questions, but need help, thanks in advance.

kingstreet

If you cannot demonstrate affordability for a new mortgage while being liable for the other one (same would apply if you were a guarantor) you will be unable to purchase a property while you are attached to this one.

If you could, you would also be liable for the 3% additional stamp duty charge on second properties.

Does your sister have a partner who could join her on the mortgage so you could leave?

swinterton

Thanks for the reply kings street, yes the affordability is the issue....even tho that would not be a problem for me as I pay nothing towards mortgage.
And I have quite a lot of equity in the property so do not know where I would stand if her partner went on the deeds/ mortgage.

kingstreet

The liability for the mortgage is joint and several, so if she can't pay, you are in the frame.

The fact that you've paid nothing so far isn't the issue.

Perhaps she should be buying you out? A remortgage and transfer of equity to pay out your share, take you off the ownership and add the partner?

AnotherJoe

swinterton wrote: »

I have a mortgage on a property with my sister that she lives in, I do not live in this property at all, we did this 3/4 years ago as an investment for us both. My sister lives in the property and pays the mortgage, and all bills, so I have nothing to do with the daily running of this house, I'm just on the deeds and the mortgage. Now the problem is my circumstances have changed and I now want to buy a house and get a mortgage..

So sell the investment and each do your own thing. If she was looking now she wouldn't be buying with you, so she's had 3/4 years and made some money, better than had she been renting. Now it's time to cash in.

csgohan4

Ask your sister your concerns and see where you take it from there.


However it seems money and family shouldn't mix and all the more reason here as one or both parties may have new circumstances such as family or wanting a house to themselves.


If your sister refused you may have to force a sale which is expensive and detrimental to your relationship too.

getmore4less

When you made this investment and commitment to the debt what exit conditions were put in the agreement at the time?

Did you do a formal trust deed or just agree over a chat?

myslef

I think if your parents can support you any way you should follow it, or your parents could get a mortgage but you can pay for that and live there as an option.

Seansw8

Hello,

I signed as a guarantor on my mother's mortgage loan many years ago, she died recently leaving around £27000 left to pay off, will I be entitled to own the property if I pay that off, even if I'm not mentioned in any will?

Thanks

da_rule

Seansw8 wrote: »

Hello,

I signed as a guarantor on my mother's mortgage loan many years ago, she died recently leaving around £27000 left to pay off, will I be entitled to own the property if I pay that off, even if I'm not mentioned in any will?

Thanks

If you are not entitled to inherit it then no you cannot just take the property. The mortgage is a secured debt so will have to be paid off out of the estate. If there isn't enough liquid assets (cash) in the estate the house may need to be sold to pay off the mortgage.

If you are due to inherit the house you can pay the mortgage off yourself or contact the lender and see if they'll allow you to take the mortgage over.

Also, as a side note, it is not a good idea to hijack other peoples posts. You should really be starting your own, either here or in the wills/probate forum.