Can Son get mortgage on Mother's house?

chrtho

Situation is this: Mother owns house jointly with former partner who no longer lives there and has poor credit rating. Her son would like to buy out the former partner's share but does not live in the house. Skipton said no because he's not living there. Is this a complete no-no or is it worth shopping around?

foxy-stoat

Speak to a whole of market broker - if they say it cant be done then think of another plan.

AnotherJoe

Who has has poor credit rating, mum or ex partner?

chrtho

The mother has poor credit. House is mortgage-free.

Exodi

So hold on, the house is owned outright by Mum+Ex. The son wants to take out a mortgage on the house to buy-out Ex but does not want to live in the house.

If you were to get a mortgage, the lender would almost certainly required it is joint with your mother to reflect the deeds. May be difficult without being resident + mums credit rating.

Am I missing something? I just don't understand why? Why would the son buy out half of a house that has no mortgage on it - potentially setting himself up for SDLT and family/mortgage issues? Is it an investment for him - needless to say, house prices are pretty unpredictable (especially now!)

I'm sure I'm missing something obvious that would make it a good idea to do this...

chrtho

The son is worried that if Mum pops off, the house will default to ex and he gets nothing.

Can you expand on "SDLT and family/mortgage issues" ?

TrickyDicky101

chrtho wrote: »

The son is worried that if Mum pops off, the house will default to ex and he gets nothing.

Can you expand on "SDLT and family/mortgage issues" ?

Assuming the property is currently held under a joint tenancy then the mother could simply sever the joint tenancy so that it becomes held under tenants in common. The ex-partner cannot block a severing of the joint tenancy.

This would be a cheaper and much simpler option than effectively purchasing half the house. Maybe cost £200 ish via a solicitor.

AnotherJoe

Or perhaps its as simple as ex partner wants his half and the only way to get that is to force a sale, evicting mum in process who wont be able to buy another house,.

chrtho

So if "tenants in common", does that mean the son would automatically inherit the mother's half?

The ex-partner wants to sell his share. The mother wants the security that half-ownership with her son would bring. The son wants to secure his inheritance.

AnotherJoe

chrtho wrote: »

So if "tenants in common", does that mean the son would automatically inherit the mother's half?


No, thats joint.


The ex-partner wants to sell his share. The mother wants the security that half-ownership with her son would bring. The son wants to secure his inheritance.

As the Rolling Stones put it "you cant always get what you want" and unfortunately that may be the case here.

Despite the poor credit record does mum have income to support a mortgage ?

The alternative is, would downsizing work? Or could she get into a "senior" type rental accommodation where once you are in then they will not be evicting you?
BTW joint with son wouldnt necessarily give security, there are scenarios such as divorce, bankruptcy where the house could be at risk via sons share being sold. Though I guess its at risk now anyway.
As per the first reply they need to see an independent mortgage broker

foxy-stoat

Sell, downsize and pay the Ex off.