Buying a mortgage from partner

MacyD

Hi I was wondering if anyone could advise me on this. My partner and I have lived in our house for 8 years and the mortgage was solely in his name. He wants to sell me the house for the remainder owing on the mortgage. I have phoned Halifax who the mortgage is with and they said they don't do this, he would have to sell me the house for the full price of the house. Even though I paid in to the deposit of the house, I had a flat at the time so he took the mortgage out in his name only.

I was wondering if anyone knows any mortgage company who would allow the transfer of the mortgage at the price owed left on the mortgage.

Thanks in advance

ACG

You can not buy a Mortgage.
You would need to apply for your own mortgage and purchase the property. Some lenders would allow you to purchase the property for the true value and use the equity as your deposit.

Thrugelmir

All you need to do is apply to a lender for the amount of the outstanding mortgage and purchase the property.

Why does your partner want to gift you the rest? Are they in financial difficulty.

MacyD

Thanks for your replies, yes he is having tax problems. So he wants me to take over the mortgage, but at the price that's left on it. Which Halifax calls it a concessionary purchase but don't do it. There is quite amount still on the mortgage but at least £70,000 less than what he bought it for. We did make extra payments a few times. Thrugelmir Halifax said they don't allow it or any company relating to them.

Thanks

ACG

Do you/your partner think taking the property out of his name will mean the tax man can not come after the property? It could be seen as disposing of assets and effectively reversed.

Thrugelmir

MacyD wrote: »

Thanks for your replies, yes he is having tax problems. So he wants me to take over the mortgage, but at the price that's left on it. Which Halifax calls it a concessionary purchase but don't do it.

A concessionary purchase is where the seller discounts the price to provide the buyer with a deposit. Simply selling the property at undervalue will immediately set alarm bells ringing. Lenders are all too well aware of the Insolvency Acts and the ability of creditors to overturn transactions through the Courts. Which were for all for intents and purposes were made with the sole intention of avoidance.

MacyD

No we tried a while back to get my name on the mortgage but he had been made redundant and tried self employment. I have been putting the money into his bank to cover the mortgage the last few years, as he has only had a bit of work here and there. This is why he was wanting to pass the house / remaining mortgage amount over to myself.

MacyD

ACG wrote: »

You can not buy a Mortgage.
You would need to apply for your own mortgage and purchase the property. Some lenders would allow you to purchase the property for the true value and use the equity as your deposit.

It says on the mortgage statement transfer of mortgaged property (transfer of ownership) and the fee for this. What does this mean? thanks

antrobus

ACG wrote: »

You can not buy a Mortgage....

Actually you can. Billions of pounds worth of Northern Rock mortgages have been bought and sold, for example. But it is not, generally speaking, the kind of thing that private individuals can do.

MacyD wrote: »

It says on the mortgage statement transfer of mortgaged property (transfer of ownership) and the fee for this. What does this mean? thanks

Transfer of mortgaged property = sale of the property on which the mortage has been granted

antrobus

MacyD wrote: »

No we tried a while back to get my name on the mortgage but he had been made redundant and tried self employment. I have been putting the money into his bank to cover the mortgage the last few years, as he has only had a bit of work here and there. This is why he was wanting to pass the house / remaining mortgage amount over to myself.

There is a difference between the legal and the beneficial interest in property. If all you are trying to achieve is a recognition of your interest in the property, then a decleration of trust might be all that you need. Speak to a solicitor.

ACG

antrobus wrote: »

Actually you can. Billions of pounds worth of Northern Rock mortgages have been bought and sold, for example. But it is not, generally speaking, the kind of thing that private individuals can do.

You know what I mean.

It says on the mortgage statement transfer of mortgaged property (transfer of ownership) and the fee for this. What does this mean? thanks

Transfer of property. The property can be transferred, the Mortgage can not. You can potentially add your name to the mortgage but you can not just switch the mortgage from one name to another.

I am not exactly sure how you taking ownership of a property in any way helps with paying the tax man, especially if no money is changing hands. If anything it will cost you to change ownership - legal fees, valuation fees, stamp duty etc etc.