Equity release and shared ownership

I have an equity release lifetime mortgage on the home I solely own. I would like to know if I would be allowed to make my son who is 36 a joint owner of the property without affecting the mortgage.     

Comments

  • The loan was given based on the fact that they would recover their money plus interest either on your death or if you moved into alternative accommodation, they will not allow you to gift equity to your son. 
  • peb
    peb Posts: 1,778 Forumite
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    The answer is no.  Absolutely can't be done 
  • msb1234
    msb1234 Posts: 526 Forumite
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    if if it was owned as joint tenants then he would be equally responsible for the repayment of the equity release unpin your death. This could potentially make him homeless. 
  • theoretica
    theoretica Posts: 12,293 Forumite
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    What do you hope to achieve?  Does your son live with you?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • TBagpuss
    TBagpuss Posts: 11,199 Forumite
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    No - to change the legal ownership of a mortgaged property, you need the consent of the mortgage lender as the change affects their security. They wouldn't grant it in this situation as they will have provided the mortgage to you based on your age and statistical life expectancy.

    You probably could draw up a declaration of trust to gift your so a beneficial interest in the property but his claim would be subject to the lenders prior interest, and you'd both need advice about the implications in terms of CGT, Inheritance Tax if relevant, and deprivation of assets. 

    What are you trying to achieve? 
    You can make a will with your son as beneficiary, which would mean that he would inherit any remaining equity if you still own the house on your death, and he could potentially then seek to get a mortgage in his own name in order to pay off the current mortgage if he wanted to stay in the house.
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • Marcon
    Marcon Posts: 10,594 Forumite
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    Jen4M said:
    I have an equity release lifetime mortgage on the home I solely own. I would like to know if I would be allowed to make my son who is 36 a joint owner of the property without affecting the mortgage.     
    As others have asked, what are you hoping to achieve? If it's avoidance of care home fees, it wouldn't work (deprivation of assets). If you are trying to do some IHT avoidance planning, then the combination of the current IHT allowance of £325K + a further residence nil rate band (if you leave the property to your son when you die) of £175K means you could leave him a property worth up to half a million pounds with no IHT payable - possibly more if you are widowed and have 'inherited' any unused IHT allowances from your late husband.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
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