Trying to add partner to mortgage - odd reply!

Cash_Cow

Doing this will allow my (married) partner to manage it of I should pop off and may add CGT relief and simplify remortages! Its a btl in my name only currently so we are adding my partner to the lease and land reg and mortgage. Filled out the mortgage equity form but they have come back with this (below) via my conveynacer and I dont understand it at all. I just want her to be 50/50 on everything. I'll speak to the conveyancer when shes back from hols but does anyone know what this means:

I am pleased to advise that I have now received the written confirmation from >mortgage co< in respect of your partner being “added” to the mortgage.

In this regard they have advised that they will not formally add your partner to the mortgage as “to do so may result in us (the lender) entering into a new contract regulated by the Financial Services and Markets Act 2000.”

They have however advised that whilst they will “leave the existing arrangements in place” so that your partner may be noted on the title documentation they will require her to enter into a Deed of Covenant where by she confirms that she will observe and perform all the obligations that already exist with yourself as the existing borrower.

It looks like all the obligation but do we have all of the rights in the eye of the taxman/probate etc? The mortgage was taken out just pre 2000...

foxy-stoat

You will need a new mortgage by the sounds of it. Unlikely you can just call up and add someone to a mortgage, like an additional driver for car insurance.

Cash_Cow

Its a transfer of equity form i filled in. They state:

Examples of variation to borrower are where you request a new party to be added to the title and the mortgage, or you request a current borrower to be removed from the title and/or mortgage.
No variation is permitted without our written consent. The position after the variation must fall within Paragon’s current lending guidelines and the borrower’s income, credit history and the property held as security, must all be reappraised. In view of the wide variety of circumstances involved with variations to borrower, our application form requests information at the outset, however we may ask for additional information and further clarification
of information provided, after receipt of the application.

They did say it was possible... I am also combining it with a lease extension so the time seemed right as it all needs re-drafting and re-registering.

foxy-stoat

You will need a new mortgage, speak to your broker if the current lender isn't willing to help you.

Cash_Cow

Ok - thanks a remortgage is on the cards anyway to release equity. Will get the partner on the lease and land reg first I guess? Thanks

davidmcn

Cash_Cow wrote: »

Will get the partner on the lease and land reg first I guess?

Not "first", it happens simultaneously.