Joint proprietor, sole borrower (multi-generation household)

vectistim

We are looking at moving in altogether with my parents, given their ages they would be an issue for mortgage purposes.

Previous searches suggest that HSBC might do joint proprietor, sole borrower, can anyone point at anything in detail from them? (In our case 4 owners, 2 borrowers, LTV<50%)

I've tried the search facility on their intermediary site to no avail.

Or does it work with a declaration of trust for my parents' contribution and them then signing the forms to say they're aware they'd be living there but subject to a mortgage?

Or am I overcomplicating this and most lenders won't be too bothered?

Cscott139

Joint owner, sole proprietor mortgages are generally there to help with affordability (a bit like a guarantor mortgage). This is where a parent (or other person) is named on the mortgage for affordability but not named on the deeds so they don't have stamp duty issues. This would means that person has no ownership over the property but is liable for the debt.

kingstreet

Cscott139 wrote: »

Joint owner, sole proprietor mortgages are generally there to help with affordability (a bit like a guarantor mortgage). This is where a parent (or other person) is named on the mortgage for affordability but not named on the deeds so they don't have stamp duty issues. This would means that person has no ownership over the property but is liable for the debt.

You mean joint borrower, sole proprietor.

kingstreet

vectistim wrote: »

We are looking at moving in altogether with my parents, given their ages they would be an issue for mortgage purposes.

Previous searches suggest that HSBC might do joint proprietor, sole borrower, can anyone point at anything in detail from them? (In our case 4 owners, 2 borrowers, LTV<50%)

I've tried the search facility on their intermediary site to no avail.

Or does it work with a declaration of trust for my parents' contribution and them then signing the forms to say they're aware they'd be living there but subject to a mortgage?

Or am I overcomplicating this and most lenders won't be too bothered?

Only HSBC will do this.

It's direct-only, so no broker option either.

vectistim

kingstreet wrote: »

Only HSBC will do this.

It's direct-only, so no broker option either.

Thanks, it's just odd that the only references I can find to that are some old threads on here, google doesn't show up anything official.

kingstreet

vectistim wrote: »

Thanks, it's just odd that the only references I can find to that are some old threads on here, google doesn't show up anything official.

Yeah, they are threads I took part in.

I spoke to HSBC at the time and to a solicitor pal who had done one who said he would charge double normal fee or decline to act next time.

It's known as HSBC's A2 Indirect Legal Charge if that's any help.

[Deleted User]

I accidentally did one as a broker. No one told me it was direct only, the solicitor kicked up a fuss when they refused to release funds. Hsbc did some jiggery poker in background and changed it to this A2 mortgage.... And I got told not to try it again xD

Cscott139

My bad. That's what you get when your don't read things properly.

vectistim

The other slight complication we have is the state of the building, on their intermediary site it says:

Unacceptable properties
We will not provide residential mortgages for:

house boats
mobile homes
bed and breakfast properties
properties with agricultural ties
properties with an annexe or granny flat
construction of a new property
conversion to/refurbishment of a residential property (home improvements excluded)
non-habitable properties (without a working kitchen and bathroom)
residential properties which are used wholly for commercial purposes
Live/Work units
overseas properties
holiday homes that cannot be lived in all year round

Basically the property has an incomplete extension (external walls, roof, floor and windows, but that's about it) but it does have a working kitchen and bathroom in the existing house. Maybe £10-20k of work left to do on an £800k+ house.

Any thoughts as to how strict they are at the moment with the property itself?