Joint mortgage with a friend, lump sum issue

Ozzys2009

We  own a property in London,  and both my friend and my name are on the deed. So is our joint mortgage . 

My question is about my current changes:  I lost my father recently and inherited some money.
 I am wondering if there's a way " to put this money on to MY share of the remaining Mortgage"   and reduce the overall interest ( TO pay a lower monthly amount ) without effecting my friends mortgage,  as he is not able to pay the same amount and wants to keep his payments as it is? 

Could you kindly advise if there would be a solution for such a way? 

Thank you very much in advance 

foxy-stoat

I would stick it in Premium Bonds - keep it simple.......

Assuming your still in a fix rate your monthly payment wont change though.

But if your set on reducing the joint mortgage, get a Deed of Trust drawn up by a solicitor stating the facts and what will be your exit plan if you have to sell in the future.  It isn't yours and your friends mortgage though, its joint.

You need to state if the money value is fixed or fixed percentage of the property equity value is in each name, assuming it was 50/50 before hand.  If its a big number then things will get complicated should you have to sell.

CSI_Yorkshire

Ozzys2009 said:

We  own a property in London,  and both my friend and my name are on the deed. So is our joint mortgage . 

My question is about my current changes:  I lost my father recently and inherited some money.
 I am wondering if there's a way " to put this money on to MY share of the remaining Mortgage"   and reduce the overall interest ( TO pay a lower monthly amount ) without effecting my friends mortgage,  as he is not able to pay the same amount and wants to keep his payments as it is? 

Could you kindly advise if there would be a solution for such a way? 

Thank you very much in advance 

Your friend doesn't have a mortgage.  You have a joint mortgage.  There is only one.

How you split the payments on the mortgage is entirely up to you.  If you pay your lump sum into the mortgage, it will reduce the capital balance and hence the monthly interest.  Your friend can continue to pay exactly the same amount if they wish, and the remaining amount of the monthly payment (your bit) will be smaller.

You may wish to update the share of equity or mechanism of calculation in your deed of trust to recognise the lump sum payment.

Ozzys2009

Thank you very much 🙏