Taking person off mortgage

sonialis

Hello

I have purchased property with my parents last year mainly because their income would not be enough.
Is there a way to take me off the mortgage or exhange me for someone else or i can stay on the mortgage but i do not want to be on title deeds as i would like to buy my own property ( which i can afford) but dont really want to be paying for the extra stamp duty.

Thank you

sonialis

I live in uk

Edi81

You don!!!8217;t just swap people around on a mortgage.
Your parents would need to get the mortgage on their own. If they couldn!!!8217;t get the mortgage on their own last year has anything changed now?
If not, then looks like you are stuck.
Didn!!!8217;t you think about this last year?

sonialis

I have thought about it last year and i dont regret it and would do it again. But if there is a way of maybe just getting me off the title deeds and not mortgage i would be saving a lot of money

AnotherJoe

Talk to your mortgage provider

SDLT_Geek

Your concern is with the higher rates of SDLT for additional properties. So stop thinking about whether you are "on the title deeds". That is not the point. The point is whether you have an underlying beneficial interest in the property.

Perhaps there is already a declaration of trust confirming that the registered proprietors of the property hold it on bare trust for your parents already. If so, problem solved.

If not, what share do you have in the property owned with your parents? If for example you have a 20% share in a property worth £180,000 then your share is worth under £40,000 and so would not count against you for the purposes of the 3% surcharge (though it would stop you being able to claim first time buyers relief for SDLT).

But perhaps it is not the SDLT that is really the problem? Borrowing more money when you are already liable on the mortgage of the property where you parents live might not be easy.

sonialis

Hello. We owe the property jointly so i supposed that means i owe 1/3. I thought the higher sdlt is when you are buying additional property so i would think i have to pay the higher sdlt even though i only own 1/3.

I dont think there will be a problem of me getting an additional mortgage, i really just want to avoid the higher SDLT fee

sonialis

I believ there is no declaration of trust in place. Can you please advise further?

sonialis

My share is around 81k and would like to buy a property with my partner for about 165k

SDLT_Geek

I suggest the first thing is to get clear what the ownership arrangement is with your parents. Is it really a case of one third shares? How was the price provided? Who put in the money that was not borrowed? Who in practice makes the repayments under the mortgage?

What are the expectations as to the division of the money if the property goes up in value and is sold?

Was it just a case of you !!!8220;lending your creditworthiness!!!8221; to enable your parents to buy a property, or do you really have a share?

You need to get to the bottom of this before the SDLT position can be analysed. Ideally once it is clear what the parties intended it could be set out in a declaration of trust so it is clear for the future.

sonialis

We have obtained the property as joined tenants
I did not put in any deposit nor do i actually pay for the mortgage as i rent a place with my partner.
Do i then need to contact a solicitor to get declaration of trust done?

Thanks a lot for your help