Can Three People Own a House - But Only One Needs a Mortgage

thundyuk

Just as the title says really, can three people be on the deeds for a house, but only one has a mortgage?

Say, in my case, the house is £450,000, two of us have £150,000 each, and the third doesn't. Can she get a mortgage for her share alone and it not be in our names (understandably the mortgage would be secured against the whole house not just her bit).

Thanks

BarelySentientAI

You can't mortgage part of a house (which is what it would be if the other owners weren't on the mortgage), and the mortgage company would want to be able to pursue all owners.

Doesn't stop all being on the mortgage and legally agreeing that only one will pay.

thundyuk

BarelySentientAI said:

You can't mortgage part of a house (which is what it would be if the other owners weren't on the mortgage), and the mortgage company would want to be able to pursue all owners.

Doesn't stop all being on the mortgage and legally agreeing that only one will pay.

I thought it was a weird one that would send lenders running to be fair.

theoretica

If she - hypothetically - stopped paying, wouldn't the two other owners prefer to pay the mortgage and sort out how that changed percentage ownership rather than have the whole home repossessed?  So in reality that sounds pretty close to being on the mortgage.

thundyuk

theoretica said:

If she - hypothetically - stopped paying, wouldn't the two other owners prefer to pay the mortgage and sort out how that changed percentage ownership rather than have the whole home repossessed?  So in reality that sounds pretty close to being on the mortgage.

We'd probably just get a joint mortgage in reality, I was really just wondering if there's another way to go about it.

Hoenir

thundyuk said:

BarelySentientAI said:

You can't mortgage part of a house (which is what it would be if the other owners weren't on the mortgage), and the mortgage company would want to be able to pursue all owners.

Doesn't stop all being on the mortgage and legally agreeing that only one will pay.

I thought it was a weird one that would send lenders running to be fair.

Not even running.  Straightforward with no thought NO. 

CSL0183

thundyuk said:

Just as the title says really, can three people be on the deeds for a house, but only one has a mortgage?

Say, in my case, the house is £450,000, two of us have £150,000 each, and the third doesn't. Can she get a mortgage for her share alone and it not be in our names (understandably the mortgage would be secured against the whole house not just her bit).

Thanks

Why can’t the 3rd person take out a mortgage for £150k with the £300k (or 2/3) deposit protected in the names of the other two?

If the above is not possible due to title deeds issues then the 3 of you take out a mortgage with the same £300k (or 2/3 percentage) protected. 

An easy question for a conveyancing solicitor to be fair. 

Hoenir

CSL0183 said:

thundyuk said:

Just as the title says really, can three people be on the deeds for a house, but only one has a mortgage?

Say, in my case, the house is £450,000, two of us have £150,000 each, and the third doesn't. Can she get a mortgage for her share alone and it not be in our names (understandably the mortgage would be secured against the whole house not just her bit).

Thanks

Why can’t the 3rd person take out a mortgage for £150k with the £300k (or 2/3) deposit protected in the names of the other two?

If the above is not possible due to title deeds issues then the 3 of you take out a mortgage with the same £300k (or 2/3 percentage) protected. 

An easy question for a conveyancing solicitor to be fair. 

Conveyancing solicitor's aren't in the business of lending money and the regulation / law that this entails. 

CSL0183

Hoenir said:

CSL0183 said:

thundyuk said:

Just as the title says really, can three people be on the deeds for a house, but only one has a mortgage?

Say, in my case, the house is £450,000, two of us have £150,000 each, and the third doesn't. Can she get a mortgage for her share alone and it not be in our names (understandably the mortgage would be secured against the whole house not just her bit).

Thanks

Why can’t the 3rd person take out a mortgage for £150k with the £300k (or 2/3) deposit protected in the names of the other two?

If the above is not possible due to title deeds issues then the 3 of you take out a mortgage with the same £300k (or 2/3 percentage) protected. 

An easy question for a conveyancing solicitor to be fair. 

Conveyancing solicitor's aren't in the business of lending money and the regulation / law that this entails. 

Of course they can advise on how to protect the £300k deposit, that’s their job and their bread and butter. 

The lender will lend £150k on a £450k house no problem, whether that requires 1 or all 3 is a question for the lender. 

I see nothing difficult at all here. 

I’ve protected a deposit in the house I live in now with my current partner, I am also a guarantor (joint mortgage) on my ex wife’s mortgage having had my name removed from title deeds. Anything is possible. 

user1977

“Protected” in what sense? They can’t prevent the lender from repossessing. At most all they can do is document how the equity is split.

CSL0183

user1977 said:

“Protected” in what sense? They can’t prevent the lender from repossessing. At most all they can do is document how the equity is split.

Why would a lender repossess? If the 3rd person on the mortgage was struggling with paying for the mortgage, the other 2 would force sale to recoup their funds. 

It takes a lot of defaults for a repossession order and even then then the house is force sold, the bank recoups what they are owe and any equity transferred back to the owners. 

The OP just needs to speak to a conveyancing solicitor and a lender. No point asking in here.