One or two mortgages ?

barrytiptree

Hi
My two sons have a joint mortgage on a flat which they both live in. One of them is looking to move out and buy a house with his girlfriend. He is thinking of selling his half of flat to his brother who will then take on the whole mortgage on the flat and continue living there.

Can anyone think of any problems doing this or would it be better if he (the son moving out) still kept on the join mortgage with the flat and started another mortgage on the house with the new girlfriend ?

minimike2

If the son moving out stays on the existing property he will have to pay stamp duty surcharge on the new purchase.

Plus it would surely be more useful for him to have his equity out in order to put a larger deposit down on the new place.

barrytiptree

Yes, I think he is aiming to do that (have the brother buy out his half of the flat and thereby have a bigger deposit for a house). Thanks.