Changing Name on a C&G Mortgage

How_Dare_They

My wife has a joint C&G mortgage in her sisters name and her own name. All we want to do is change the names on the mortgage to my wifes and my name until we can later afford to buy her sister out fully. However after calling C&G we have basically been informed that to do this we need to start a new mortgage application which will included fees from C&G, solicitors and survey fees. On that basis we might as well remortgage else where. Is this the same as other mortgage companies?

dunstonh

It requires work as technically your sister is selling her [share of] the property to you. You need to be aware that this now technically becomes an investment property and could have tax implications on you as well as extra work on the mortgage.

How_Dare_They

Thanks for your reply Dunstonh. While I can understand that there are some costs involved I cannot understand why this has to be done as a new mortgage which attracts all the other fees.

What happens when say a marriage breaks down and a name needs to be taken off the morgage? Are all these treated as new mortgages?

dzug

Well legally they are new mortgages. Whether all lenders apply the same fees is another matter - some might choose not to charge on that basis.

Conrad

You are setting up an entirely new legal contract, ie a new risk that has to be priced. You frame it as merely a change of names, but this underplays they reality.

The lender has a resposibility to ensure the new mortgage lein reflects the risk presented by you, afterall, if you do not pay a repossession will be sought in which case the Judge would expect C & G to have taken all proper steps to identify the risks when the transfer to your name was made.

All lenders will view this as a new application. You might also have to pay stamp duty.

Be aware your wifes sister will have to relinquish her entire claim on the property, otherwise she would be an obstacle in the event of repossession.

dunstonh

What happens when say a marriage breaks down and a name needs to be taken off the morgage? Are all these treated as new mortgages?

Yes to some degree. The person taking over needs the deeds changing and needs to prove that they can afford to take on the mortgage. Lenders oftern refuse as a single income may not be enough.