Gift deposit or transfer of equity

Karengroovy76

Hello
My partner owns a house with his brother. He hasn’t lived there in years but is still on the mortgage and the deeds, but now we want to buy a house together. He is owed £70k.
The brother is having trouble remortgaging to buy my partner out.
Now my partners parents are selling one of their flats and have said they will put down the money for us out of the sale and once the brother can get his remortage or sell he will pay the parents the £70k back.... is this possible to do all of the above and if so how?
Thanks, I look forward to the answers..

AnotherJoe

If selling is a possibility why don't they just sell it and and distribute to each other what's due?

Tom99

[FONT=Verdana, sans-serif]Is the brother still living in this house?

[/FONT] [FONT=Verdana, sans-serif]Quite apart from the large borrowed deposit for your new house, will your partner get a mortgage because they are still committed to the mortgage on the other house shared with the brother.

[/FONT] [FONT=Verdana, sans-serif]Also would buying a house now whilst your partner owns another mean +3% stamp duty?[/FONT]

Karengroovy76

Yes he is still living in
The house. The deal is that my partner comes off the mortgage & deeds so the brother can remortgage and buy him out.. is this even possible though?

Another problem The brother has late mortgage payments. Now he isn!!!8217;t going to tell the mortgage broker. But won!!!8217;t the underwriters pick that up?

Tom99

Karengroovy76 wrote: »

Yes he is still living in
The house. The deal is that my partner comes off the mortgage & deeds so the brother can remortgage and buy him out.. is this even possible though?

Another problem The brother has late mortgage payments. Now he isn!!!8217;t going to tell the mortgage broker. But won!!!8217;t the underwriters pick that up?

[FONT=Verdana, sans-serif]Yes the brother buying your partner out is the easy bit, but to do that the brother will need a mortgage equal to the existing balance plus the £70k being paid to your partner.

[/FONT] [FONT=Verdana, sans-serif]Missed payment will no doubt show on his credit file so there is nothing to be gained by keeping that from the broker.

[/FONT] [FONT=Verdana, sans-serif]Since your partner has not lived in the house for many years they my have a CGT bill so you need to factor that in as well.[/FONT]

amnblog

Your Partners Brother does not have mortgage arrears.

Your Partner and his Brother have mortgage arrears.

If your Partners Brother thinks not telling the mortgage broker is the solution he is also ignorant of the process and implications.

Don't expect your mortgage application to be a simple process in these circumstances.

1. If your Partner is still on the other mortgage it will greatly limit your new mortgage options.

2. The other mortgage arrears may stop your Partner being on a new mortgage with any Lender for the moment.

If you do manage to buy before the other property is sold you can also expect a higher Stamp Duty Bill.

getmore4less

Step one

can brother convert the mortgage with current or new lender to just his name.

OR

sell the house

Until that is done at best it will be an expensive mess as the extra SDLT will not be refundable(when the house sells) if you can get a mortgage on another place.