How best to pay off my share of tennants in common mortgage

AlisonTM

Morning. I am about to receive some money which I always had earmarked for becoming mortgage-free. I have a 50:50 tennants in common mortgage with my partner. We have so far paid equally both for deposit and payments.

Is there any way to pay off half the remaining mortgage and have proof that I own outright 50% of the property? 
 Or will I have to make a loan agreement with my partner for half the money I pay in and we keep making equal mortgage payments?

Thanks for helping

tacpot12

I think you will need to see a solictor about creating a Deed of Trust that records the fact that you are owed 50% of the equity. They may be able to suggest another option such as a formal loan to your partner secured against his equity in the property. 

MWT

AlisonTM said:

Is there any way to pay off half the remaining mortgage and have proof that I own outright 50% of the property? 

As long as there is a mortgage, the mortgage will be on the whole of the property, you cannot own 50% yourself and have your partner mortgage his 50%.

You can document the how the equity in the property is split and have that reflect the fact that 50% of the value is yours and any outstanding mortgage due would come from your partners share.

On a practical point, if you currently have a fixed interest rate on the mortgage it is likely that you could not pay off 50% without incurring an early redemption charge so you may have to time this large repayment to occur after the fix ends and before a new fix is started.

Also consider that even with a documented 50% ownership, you are still going to be on the mortgage and liable for the mortgage if your partner fails to keep up the payments...

AlisonTM

I have a no fees up to 90% early redemption mortgage that we specifically chose due to my circumstances. If my 50% ownership can be detailed and later proven if necessary via a deed of trust I will be happy with that. If my partner defaults on mortgage payments I would pick these up and presumably start to acquire >50% property share? 

MWT

AlisonTM said:

If my partner defaults on mortgage payments I would pick these up and presumably start to acquire >50% property share? 

No, not unless you find a way to cover that in the deed of trust as well...