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Renouncing share of equity - Mortgage involved
Nick_K
Posts: 14 Forumite
Hello.
I was wondering if anyone could offer advice on my situation. My parents have separated and are living apart. My Mum along with myself and another sibling still live in the family home. Unfortunately neither of my parents would be accepted for a new mortgage based on their circumstances, nor am I in a position to borrow enough money.
Would it be possible for my Dad to renounce his share of the equity whilst remaining named on the current mortgage? The idea would be to pay him X amount of money and he gives up his stake in the house. Alternatively, does anyone know any Banks that will offer mortgages 6 times your salary?
Additional info: I have a deposit saved, I just lack a big enough salary to be accepted by most Bank I have looked at (even though I am comfortably paying the mortgage at present). I have a good credit score. My parents likely have terrible credit scores.
Thank you for taking the time to read this. Any advice would be appreciated.
Nick
I was wondering if anyone could offer advice on my situation. My parents have separated and are living apart. My Mum along with myself and another sibling still live in the family home. Unfortunately neither of my parents would be accepted for a new mortgage based on their circumstances, nor am I in a position to borrow enough money.
Would it be possible for my Dad to renounce his share of the equity whilst remaining named on the current mortgage? The idea would be to pay him X amount of money and he gives up his stake in the house. Alternatively, does anyone know any Banks that will offer mortgages 6 times your salary?
Additional info: I have a deposit saved, I just lack a big enough salary to be accepted by most Bank I have looked at (even though I am comfortably paying the mortgage at present). I have a good credit score. My parents likely have terrible credit scores.
Thank you for taking the time to read this. Any advice would be appreciated.
Nick
0
Comments
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Yes - what you are talking about is changing the beneficial ownership of the property.
Your mum and dad would still both be legal owners of the property - but they can redefine what shares they are each entitled to.
They would need to have a declaration of trust drawn up, which could provide for the property to be held by them as trustees for your mum alone - i.e. she would be entitled to 100% of the equity.
This can be done as part of a divorce order, if they decide to divorce, or as part of a separation agreement.
Staying on the existing mortgage would mean that your dad would find it harder to get a new mortgage elsewhere, so it is common for this kind of arrangement to include a timescale - for instance providing for the house to be sold if your mum is not able to get your dad released from the mortgage within a set period of time.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
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(even though I am comfortably paying the mortgage at present).
You are currently paying your parents' mortgage?0
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