Selling to someone already on joint mortgage

Omega123

Hi guys!

First off I apologise for signing up and jumping straight in with a question. I appreciate it's cheeky.

Quick bit of back story to explain my situation. I bought a house with an ex-girlfriend about 10 years ago. We split not long afterwards and I ended up taking on the house but having to put my sister on the mortgage with me to meet their requirements. This didn't seem to be a problem with Nationwide or my solicitor. They both understood the situation fully. I have always lived in the house and paid the mortgage on my own. My sister and her husband are now in a position to buy a house and I'm looking to move. Ideally I would like to sell my house to them but technically half of it is already hers. Is this something that should be straight forward or do I have to be careful with how I approach mortgage lenders/solicitors? Can my sister and her husband just apply for a mortgage as normal (probably not as first time buyers but possibly with the advantage of being an existing Nationwide customer).

There is absolutely no animosity between us and it can be assumed that both sides will play fair. If we have to split the proceeds and then have her give me back her half then I'm confident doing so. I just feel a bit apprehensive discussing the situation openly with an adviser. It feels like I'm doing something dodgy for some reason.

Thanks in advance,
Omega

kingstreet

They are purchasing your equity.

Their deposit will be her existing share in the property, plus cash they wish to put in, if any.

Assuming the only consideration is half the existing mortgage, SDLT will be payable if the mortgage is more than £250k.

It's a straightforward process with a solicitor handling the transfer of equity once they have their new mortgage.

Thrugelmir

Omega123 wrote: »

I just feel a bit apprehensive discussing the situation openly with an adviser. It feels like I'm doing something dodgy for some reason.

They are buying you out. So they need to make all the moves.

Voyager2002

Omega123 wrote: »

I just feel a bit apprehensive discussing the situation openly with an adviser. It feels like I'm doing something dodgy for some reason.

Not remotely dodgy, but your sister (and her partner presumably) are the ones who would be buying and so they are the ones who should take advice.

Omega123

Thanks guys! That's plenty to put my mind at ease. I know I'm just over complicating things. Having her on the mortgage has always felt dodgy for some reason. They should have their 10% deposit saved up shortly and we'll get on with it.

kingstreet

She owns equity in the property?

Why would she need 10% deposit?