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Tenants in common
mo786uk
Posts: 1,379 Forumite
Hi
2 people A and B own a house as tenants in common and they own 50% each. A and B also jointly have a mortgage.
A wants to sell their share to C. A accepts they will be liable for the mortgage payments if B stops paying and this is a risk A will take.
How is this recorded? Is it recorded as a deed between those parties?
Do you HAVE to register it at Land Registry or can you wait until another event arises like a re-mortgage?
Do you HAVE to record it as a new sale through Land Registry.
All 3 parties are linked so willing for it to be less formal and less aggro.
It appears that A can sell their share even if they have a mortgage but its not clear what process is best followed?
2 people A and B own a house as tenants in common and they own 50% each. A and B also jointly have a mortgage.
A wants to sell their share to C. A accepts they will be liable for the mortgage payments if B stops paying and this is a risk A will take.
How is this recorded? Is it recorded as a deed between those parties?
Do you HAVE to register it at Land Registry or can you wait until another event arises like a re-mortgage?
Do you HAVE to record it as a new sale through Land Registry.
All 3 parties are linked so willing for it to be less formal and less aggro.
It appears that A can sell their share even if they have a mortgage but its not clear what process is best followed?
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Comments
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Hi
2 people A and B own a house as tenants in common and they own 50% each. A and B also jointly have a mortgage.
A wants to sell their share to C. A accepts they will be liable for the mortgage payments if B stops paying and this is a risk A will take.
How is this recorded? Is it recorded as a deed between those parties?
Do you HAVE to register it at Land Registry or can you wait until another event arises like a re-mortgage?
Do you HAVE to record it as a new sale through Land Registry.
All 3 parties are linked so willing for it to be less formal and less aggro.
It appears that A can sell their share even if they have a mortgage but its not clear what process is best followed?
If A wants to sell his/her share to C then B and C will need to apply for a new joint mortgage. The transfer of ownership will be done along side the new mortgage.0 -
A & B will need the consent of the mortgage lender, and most likely, B&C will need to get a new, joint mortgage.
It might be possible for A&B to remain as the legal owners and to have a declaration of trust that A&B hold the property on Trust for B&C, subject to the prior interest of the mortgage lender, but that then leaves A very vulnerable.
Much better for A&B to sell to B&C, for the current mortgage to be paid off and for B&C to obtain a new mortgage together.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
A & B will need the consent of the mortgage lender, and most likely, B&C will need to get a new, joint mortgage.
It might be possible for A&B to remain as the legal owners and to have a declaration of trust that A&B hold the property on Trust for B&C, subject to the prior interest of the mortgage lender, but that then leaves A very vulnerable.
Much better for A&B to sell to B&C, for the current mortgage to be paid off and for B&C to obtain a new mortgage together.
As I understand the mortgage company cannot stop A selling their share can they?
If the house is sold the mortgage company will get paid off first regardless of any deal A has with C. So do you actually need their permission?0 -
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One of them is.0 -
Will the whole mortgage be paid off?
Not at the point of sale.
But my thinking is that the ability of A to sell his interest in the house is independent of what mortgage is owed. That is what I am trying to confirm.
Whilst in an ideal world you would settle the whole mortgage and start again afresh there are a number of reasons in the real world why that is not always easy.0 -
Not at the point of sale.
But my thinking is that the ability of A to sell his interest in the house is independent of what mortgage is owed. That is what I am trying to confirm.
Whilst in an ideal world you would settle the whole mortgage and start again afresh there are a number of reasons in the real world why that is not always easy.
The mortgage company also has in interest in the house, which is linked with A's interest in it. If A disposes of their interest, then the mortgage company's interest will need disposing of.I consider myself to be a male feminist. Is that allowed?0 -
One of them is.
Good grief Charlie Brown. If you want meaningful advice could you please give us the facts instead of your abridged version of them?
From what I can gather, back in September only Matt was named on the mortgage and the deeds? When did this change so that A and B, one of whom is either Matt or Rob, became joint owners and took out a joint mortgage?
It's a bit early in the morning for riddles but if I had to guess I would say that you are Matt (going by your user name) and that Matt is B. Am I right?0 -
Not at the point of sale.
But my thinking is that the ability of A to sell his interest in the house is independent of what mortgage is owed. That is what I am trying to confirm.
Whilst in an ideal world you would settle the whole mortgage and start again afresh there are a number of reasons in the real world why that is not always easy.
Well your thinking (Matt) would be wrong. The ability of A to sell his interest in the house is very much dependent on the mortgage lender. The loan to A and B is secured against the property, therefore A cannot just go selling his share to someone else whilst there is still a mortgage outstanding.0
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