Legal charge

Ed-1

In a property owned jointly, is it possible to register a legal charge with Land Registry where just one of the owners is named as the borrower?

user1977

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Ed-1

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

user1977

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

I'm not convinced you can use the Lifetime ISA in that scenario, but others here probably know better and will be along soon....

But in relation to a private mortgage, it's entirely up to the parties to agree who has the obligation to repay it. As I said, all the owners need to sign in order to create the charge though.

Keep_pedalling

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

Is the buyer planing to live in the property with the current owner? 

Ed-1

Keep_pedalling said:

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

Is the buyer planing to live in the property with the current owner? 

The current owner doesn't live in the property. The buyer does.

Ed-1

user1977 said:

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

I'm not convinced you can use the Lifetime ISA in that scenario, but others here probably know better and will be along soon....

"Lifetime ISA investors can purchase a property as a joint owner with a person who already owns the property, but this is also subject to the conditions of the Lifetime ISA being satisfied."
https://www.gov.uk/government/publications/conveyancers-lifetime-isa-technical-guidance/conveyancers-lifetime-isa-technical-guidance

Keep_pedalling

Ed-1 said:

Keep_pedalling said:

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

Is the buyer planing to live in the property with the current owner? 

The current owner doesn't live in the property. The buyer does.

Does the seller realise that they are likely to have a capital gains liability on the share of the house they are selling? 

Ed-1

Keep_pedalling said:

Ed-1 said:

Keep_pedalling said:

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

Is the buyer planing to live in the property with the current owner? 

The current owner doesn't live in the property. The buyer does.

Does the seller realise that they are likely to have a capital gains liability on the share of the house they are selling? 

Yes which is really why they are selling it (before the threshold is decimated even further next April)!

user1977

Ed-1 said:

user1977 said:

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

I'm not convinced you can use the Lifetime ISA in that scenario, but others here probably know better and will be along soon....

"Lifetime ISA investors can purchase a property as a joint owner with a person who already owns the property, but this is also subject to the conditions of the Lifetime ISA being satisfied."
https://www.gov.uk/government/publications/conveyancers-lifetime-isa-technical-guidance/conveyancers-lifetime-isa-technical-guidance

And are they? I see they include buying with a mortgage - by which I presume they mean a normal one, not a "private" mortgage.

Ed-1

user1977 said:

Ed-1 said:

user1977 said:

Ed-1 said:

user1977 said:

You might want to explain why you're asking. Both owners will need to sign the charge in order for it to be registered, but that doesn't necessarily mean both need to have the obligation to repay any loan.

Relative/friend wants to buy a share of the equity from the existing owner but not the full property, with the help of a Lifetime ISA which requires a legal charge. Private mortgage arranged. Need to register legal charge alongside the equity transfer. Do both owners need to be listed as borrowers on the charge or can the owner who is liable for the mortgage just be named as the borrower and both owners execute the deed?

I'm not convinced you can use the Lifetime ISA in that scenario, but others here probably know better and will be along soon....

"Lifetime ISA investors can purchase a property as a joint owner with a person who already owns the property, but this is also subject to the conditions of the Lifetime ISA being satisfied."
https://www.gov.uk/government/publications/conveyancers-lifetime-isa-technical-guidance/conveyancers-lifetime-isa-technical-guidance

And are they? I see they include buying with a mortgage - by which I presume they mean a normal one, not a "private" mortgage.

There's no legal distinction between a commercial mortgage and a private mortgage:
https://www.whatdotheyknow.com/request/994144/response/2369043/attach/3/FOI2023 10923 FOI Response Issued 2023 07 20.pdf