Joint Remortgage with older person

shreeuk

Hi Everyone,
I’m a 64 year old having a joint mortgage with family member who is now adamant to come off the mortgage. I have 4 months left on the term. An older friend (75years old) is willing to come on the mortgage. I have lived in the house for 39 years and will be difficult to move out of the area at my age and to restart.
is it then possibly for my friend and I to have a joint Remortgage on the property? We are both working.
many thanks 

MWT

A little more detail would help people to give you useful answers.

Since you say that there is only 4 months left on the term, but you are asking about remortgaging, is this an interest only mortgage with a balance remaining that you will not be able to clear in the next 4 months?

Also, what is the approximate value of the house and how much would you need to borrow with the remortgage?

shreeuk

Yes it is interest only mortgage. And yes o/s balance remains 283k
value of property 550k
i have tried lifetime mortgage to no avail as my property is next to commercial property 

london21

The Person currently on the mortgage with you do they have ownership in the property and will your friend you are looking to include have ownership? 

MWT

shreeuk said:

Yes it is interest only mortgage. And yes o/s balance remains 283k
value of property 550k
i have tried lifetime mortgage to no avail as my property is next to commercial property 

Are you already talking to an advisor?

If your income is high enough and guaranteed into retirement, or your employment is believably sustainable for the length of the mortgage then you should still have access to normal repayment mortgages. There are lenders who would consider 10-15 years or more in some cases. The availability of your friend to come onto the mortgage may help, but their age would limit the term, so that is a consideration for your advisor.

If you need another interest only product then there are 'Retirement Interest Only' mortgages but they will also need an assured income stream stretching through your remaining years sufficient to cover the interest, as these products do not have a term and will only require repayment upon the demise or entry into long term residential care of the last borrower.

The problem here may be that the lender will probably stress-test your ability to pay based on a single surviving life, so even if it is possible to add your friend to the mortgage, it may not help... ... but that again is something to talk to your advisor about...

shreeuk

London 21 the person currently on the mortgage is on the deeds however he just wants to come off it totall. 

shreeuk

MWT I have not spoken with advisors yet as I was not sure if there were any lenders that had such products. It will be for a short term after which I will take a lifetime mortgage.

MWT

shreeuk said:

MWT I have not spoken with advisors yet as I was not sure if there were any lenders that had such products. It will be for a short term after which I will take a lifetime mortgage.

How short?

Given you said that your current property is unsuitable for a Lifetime Mortgage due to commercial adjacencies, are you planning to downsize/move elsewhere?

shreeuk

Maybe 12-24 months. I have just found out that the commercial property is being sold as a residential and saw someone taking pics of the property. As my current term is finishing in 4 months by which the process for next door may not be completed, I need some more time. Lifetime lender’s criteria states my property must not be a commercial property which it’s not. It also states my property should not be above a commercial (most lenders refer this to takeaways and chip shops) which it’s not. I’m next door. Have been for 38 years.

MWT

So, if your income is sufficient, you are just looking for a traditional repayment mortgage on a 1 or 2 year fix and the longest term you can get, talk to a broker and see what is possible...

Re the Lifetime Mortgage, do check to see how much you can get based on your £550k valuation and your age, you may need to pay down the remaining £283k balance a bit to get the two to meet in the middle...

shreeuk

There’s one lender who can lend max on enhanced lifetime  basis (health issues)
this lender though good for me is declining due to commercial property next door. Lender’s criteria mentions what I mentioned above about my property not be a commercial and not be above a commercial property. Neither applies to me. They’re still declining. That’s what I also wanted to know if there was a way round it.