Joint Mortgage

theshed

Was not aware of stamp duty issues but if things go accordingly we will re-mortgage our home onto lower fixed rate deal in my name only. Due to my age length of loan could be an issue but by using savings to bring the loan amount down payments will be around the same as they are currently.
Lender was not happy with my wife paying into two mortgages as by their criteria it was unaffordable. But by moving funds around it all looks workable.
Far from gloating I am now feeling quite relieved. My initial fears appear to be unfounded.
Of course we still wait for final agreements but it does show that alternatives are available.
My initial thought was to sell house, but after her putting so much into it at a young age I felt that would be a backward step.
Thanks for all the genuine advice.

Socajam

I went through this situation in 1989.
Just bear in mind that boyfriend could change his mind and ask for a sum of money, which is his right.
I had to give my ex 20,000 pounds to get him off the mortgage in 1989
Our mortgage went from 39,000, to me borrowing 21,000 to get my name on the mortgage.
My new mortgage was 60,000 plus a new endowment policy of 89 pounds per month.
During that time interest rate was at 15%.

[Deleted User]

theshed wrote: »

Was not aware of stamp duty issues but if things go accordingly we will re-mortgage our home onto lower fixed rate deal in my name only. Due to my age length of loan could be an issue but by using savings to bring the loan amount down payments will be around the same as they are currently.
Lender was not happy with my wife paying into two mortgages as by their criteria it was unaffordable. But by moving funds around it all looks workable.
Far from gloating I am now feeling quite relieved. My initial fears appear to be unfounded.
Of course we still wait for final agreements but it does show that alternatives are available.
My initial thought was to sell house, but after her putting so much into it at a young age I felt that would be a backward step.
Thanks for all the genuine advice.

Before you go to too much effort, that wont save you stamp duty as you and your wife are married. obvious loophole that was closed (or never opened in the first place i suppose).

Have you looked in to Joint Borrower Sole Proprietor mortgages? Where your wife goes on the mortgage for affordability and the bank can chase both for payment but she stays off the title deeds. As long as she isnt receiving a 'beneficial interest' such as living at the property or a share of the equity then she wouldnt be classed as owning it for stamp duty purposes.

Speak to a solicitor who has done these if you go down this route as last one i did was managed by a solicitor who had never done one and i had to argue with her for ages to not have her charge the higher rate of stamp duty.

getmore4less

theshed wrote: »

Was not aware of stamp duty issues but if things go accordingly we will re-mortgage our home onto lower fixed rate deal in my name only. Due to my age length of loan could be an issue but by using savings to bring the loan amount down payments will be around the same as they are currently.
Lender was not happy with my wife paying into two mortgages as by their criteria it was unaffordable. But by moving funds around it all looks workable.
Far from gloating I am now feeling quite relieved. My initial fears appear to be unfounded.
Of course we still wait for final agreements but it does show that alternatives are available.
My initial thought was to sell house, but after her putting so much into it at a young age I felt that would be a backward step.
Thanks for all the genuine advice.

That does not fix the stamp duty problem.

For the purposes of property ownership, married couples (and civil partners) are treated as one unit.

theshed

That sounds a lot worse than what we are having to consider. But I assume and hope you got through it ?
Selling up would seem such a waste.
Hopefully ex will sign papers giving up rights. To be honest once all legal work is done and various payments made there would not be much 'profit' anyway.

theshed

Thanks for the info' JMA.
I wonder why neither Solicitor nor mortgage advisor has mentioned it ?
We will have to look into that.

[Deleted User]

theshed wrote: »

Thanks for the info' JMA.
I wonder why neither Solicitor nor mortgage advisor has mentioned it ?
We will have to look into that.

Few lenders offer it so if your advisor is tied to a bank (i use the term advisor loosely when they are employed directly by the lender) then they may not offer them.

With something like this it is always worth employing the services of a broker who accesses lenders both on and off the high street.

There are lenders that do much longer terms than others as well so if the term is being shortened by your wife being on your daughters mortgage it may be you can move to a lender that allows your wife to declare working well past state retirement age and keep the daughters mortgage on the term that suits her (assuming your wife will actually work to this age at least)

Im not saying any of this is the best way forward for you but it sounds like you are only thinking in quite simple terms of remove someone and replace with someone else.
If you dont have someone guiding you on the best route to achieve this then you need to find a broker. If you have a broker then you need to question why all the options haven't been discussed and either challenge the advice or find a new one with more experience.

enthusiasticsaver

Both your daughter and her ex are jointly liable and the lender will chase both for the whole payment. She cannot just pay half as together they are responsible for the whole payment. She should sort this out asap before she defaults and it will help if her and her ex are civil. What does he want to happen? What is the mortgage outstanding and the value of the property? The cleanest solution may be to sell and start again.

enthusiasticsaver

theshed wrote: »

Yes we are looking at helping her out, problem there is we do not want to just pay up and have someone come along in 'x' number of years and expect a cut.
Selling is an option but she has put a lot into the house so is reluctant to do that unless forced to.
Have got appointment with lender this week so hopefully we can sort something.
In an ideal world for us, ex would default, lender repossess 50% of house which buy at a cut price...
If only !

That will never happen. The lender cannot repossess half a house and any defaults will also stop your daughter getting another mortgage.

Cscott139

Is she tied into a deal? There could be an option to remortgage to a lender which offers a joint owner sole proprietor mortgage which would allow your wife could be added for affordability reasons but no stamp duty would be payable as she would not be classed as an owner.