Removing gf name from deeds

V2001

gf currently owns a property with her brother. They cohabit together. She wants to move out with me and get her name of the deeds. She wants nothing to do with the property and is willing to give it solely to her brother.

The house has a 115k mortgage. The mortgage company is not allowing the brother to take over as sole mortgage owner due to having bad credit. He is also unwilling to take her name off as she's responsible for paying the mortgage with lender, and that provides him with a sense of security.

Is there anything she can do to remove her name. She is not selling her share to him, and wants to gift it and be able to move out without later triggering a cgt or iht liability.
The issue being mortgage company won't put mortgage in sole name of the brother. He is not willing to help matters, so what can be done?

V2001

gf currently owns a property with her brother. They cohabit together. She wants to move out with me and get her name of the deeds. She wants nothing to do with the property and is willing to give it solely to her brother.

The house has a 115k mortgage. The mortgage company is not allowing the brother to take over as sole mortgage owner due to having bad credit. He is unwilling to take her name off as she's responsible for paying the mortgage with lender.

Is there anything she can do to remove her name. She is not selling her share to him, and wants to gift it and be able to move out without later triggering a cgt or iht liability.
The issue being mortgage company won't put mortgage in sole name of the brother. He is not willing to help matters, so what can be done?

Soot2006

At the moment, the mortgage company has the security of two liable owners. If the brother can't afford to take on the mortgage by himself, the lender won't allow her to simply walk away from that liability. Not much can be done if he can't afford it as he either needs to be able to take over the dull mortgage, or they will need to sell to a third party. Until one of those things happens, the property will remain co-owned by your gf, with all rights and responsibilities that go with that.

eskbanker

She probably considers the property to be an asset but really it's more of a liability if there's a joint mortgage whereby a third party owns a sizable chunk of it, but the tax aspects of her concern would seem secondary, so it might be worth posting on one of the other boards closer to the fundamental issue of how to dissolve joint property ownership?

https://forums.moneysavingexpert.com/categories/house-buying-renting-selling
https://forums.moneysavingexpert.com/categories/mortgages-endowments
https://forums.moneysavingexpert.com/categories/marriage-relationships-families

V2001

There is a possibility of the mother being a guarantor,  would that be a option if the brother takes it over and mother acts as a guarantor.  She also lives at the house.

Wonka_2

V2001 said:

There is a possibility of the mother being a guarantor,  would that be a option if the brother takes it over and mother acts as a guarantor.  She also lives at the house.

So what's the full story then ?

It seems a strange setup if brother/sister have a (mortgaged) house with mother also living there. Is she a tenant ? Is she contributing ? And if she's to act as guarantor then presumably she has a big enough income to do that ?  

V2001

Kids took on mortgage because there mother at time couldn't get the mortgage alone. 
Mother works  doesn't earn alot around 25k p.a. she has savings of around 70k. I'm just clutching at straws if she can be a guarantor. Just trying help gf get out of this situation so we can move in together.

p00hsticks

V2001 said:

Kids took on mortgage because there mother at time couldn't get the mortgage alone. 
Mother works  doesn't earn alot around 25k p.a. she has savings of around 70k. I'm just clutching at straws if she can be a guarantor. Just trying help gf get out of this situation so we can move in together.

Rather than a guarantor, why can mother not simply go on the mortage as joint mortgagee ? 

Hoenir

Also use some of her savings to reduce the mortgage that's required. 

ACG

He could try a different lender but the repayments will be higher. 
Short of that, the only option is court. 

As a side though, could she use her position to force it? If he does not help find a solution to take her off, she will take it to court and go for half the equity? 

V2001

She's doesn't want to take them to court being family. I can understand that.
She's also doesn't want any equity, she's happy to gift her share over. The only issue is the mortgage Co won't put it in brother's sole name.

Trying diff lenders may be a option, I may suggest that thanks