Mortgage Without inlaws but living in property

Leightley21

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

Brie

My guess is that it won't be possible or at the very least won't be simple.  

When we were buying a house for ourselves and MiL she put £50k towards the purchase.  The bank needed her to sign a letter stating that the money was a gift and that she would not have any right to the house if for whatever reason we didn't pay the mortgage.  That in itself was straight forward as only we had the mortgage and only we were on the deeds.  

If you all are going to be on the deeds then the bank will want to ensure that they can repossess the house if you don't pay the mortgage.  If your inlaws don't owe them anything but are on the deeds this seems like it will be impossible.  

What I would suggest is finding out if there's a way to agree to a loan with your inlaws.  So you can agree with them a value of X and an interest rate of Y and that you will pay Z a month for the next 10 years when you will look at the situation again or until it's paid off.  I would think this is something that might be arranged between a couple of solicitors (one for you and the other for them) rather than dealing with a bank etc.  I think that there will still be a number of fees to pay like stamp duty.  

Otherwise you could do something by not being on the deeds but paying rent under a similar arrangement.  But I am not a landlord or a solicitor so definitely think you need better advice than this.

kingstreet

Leightley21 said:

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

No. More owners than borrowers isn't currently available.

grumpy_codger

kingstreet said:

Leightley21 said:

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

No. More owners than borrowers isn't currently available.

What does 'currently' mean? About 2 years ago it was possible - with a letter required as Brie said above.

MWT

grumpy_codger said:

kingstreet said:

Leightley21 said:

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

No. More owners than borrowers isn't currently available.

What does 'currently' mean? About 2 years ago it was possible - with a letter required as Brie said above.

In this context it means right now you can't do it, it may have been possible in the past, it may be possible in the future, but right now it isn't...

The key difference is that Brie's post involved someone over 18 being resident but not on the deeds or the mortgage, that is still possible, what is not possible is being on the deeds but not on the mortgage.

Hoenir

grumpy_codger said:

kingstreet said:

Leightley21 said:

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

No. More owners than borrowers isn't currently available.

 About 2 years ago it was possible - with a letter required as Brie said above.

You wish to add people to the property deeds though. This would provide a legal block against the lender repossessing the property. In Brie's case there was no financial interest in the property. Two different scenario's. 

ACG

grumpy_codger said:

kingstreet said:

Leightley21 said:

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

No. More owners than borrowers isn't currently available.

What does 'currently' mean? About 2 years ago it was possible - with a letter required as Brie said above.

The lender who did it changed their criteria. 

ACG

You cant remortgage half a property. 
Which half do you remortgage? Which half does the bank repossess if you do not pay? 

You will need to do a mortgage with all of the owners on the mortgage. You can put things in place for them to protect their interest with some lenders. 

silvercar

Could you put it in your names and the in laws have a charge on the property deeds representing their share.

Hoenir

silvercar said:

Could you put it in your names and the in laws have a charge on the property deeds representing their share.

1st charge holder , the mortgage lender is unlikely to grant permission. 

kingstreet

grumpy_codger said:

kingstreet said:

Leightley21 said:

I thought this would be straight forward but like life nothing ever is.

I am seeking mortgage advice on this matter but keen to get some feedback on here aswell.

Basically, my in laws have moved back to the UK to be with daughter and grand daughter, We have found a property for us all to live in, it is quite a large sum but we did say once we had sold ours we would mortgage half and all live there 50/50.

They have bought the property outright, we need to mortgage 1/2 of the property value, they will be on the deeds but we don't want them on the mortgage nor do they want to be on it. Is this going to be as straight forward as it sounds?

As mentioned above i am seeking advice on this but it would be great to get some info on here also.

Thanks

No. More owners than borrowers isn't currently available.

What does 'currently' mean? About 2 years ago it was possible - with a letter required as Brie said above.

Only HSBC was willing to offer the A2 Indirect Charge which was required. They stopped offering this several years ago. There are several thread on this if you wish to search.