Being added to mortgage

calleyw

I was not added to the mortgage when we moved (long story).

The mortgage company say no cost to add me but told my husband I need a letter from a solictor. Ummmmmmmmmmmm I don't understand why. Can anyone shed any light on this.

This seems very strange to me. Or am I having a blonde moment and the reason are very obvious.

Many thanks in advance.

Yours

Calley

Bossyboots

I think what they might be talking about is a letter from a solicitor confirming you have had independent legal advice in relation to the effects of you being put on the mortgage. That is to say that while it is a joint mortgage you are also both singly responsible for the repayments if the other defaults, that you can lose the house if you default etc.

Usually, they send out a form for the solicitor to sign and send them a copy of the mortgage you are planning to sign so that you can take proper advice. Youl need to check with them whether this is what they mean and then arrange for it to be sent to you to take to a solicitor or nominate a solicitor for them to send it to.

Otherwise, if they say that you simply need to go and get the advice, then you need to arrange to see a solicitor for the advice and to arrange for them to confirm that advice in writing.

calleyw

That does make sense now.

I will get husband to talk to them tomorrow again.


Yours

Calley

muzer

On a similar line my partner isn't on the mortgage at the moment but when we remortgage in the next couple of months it will be a joint mortgage. Is it a legal requirement that we are both named on the deeds of the house (we aren't moving just remortgaging), as at the moment only my name appears on the deeds.

Bossyboots

calleyw wrote:

Still seems strange though having to go via a solictor but now you mention forms. I filled one in to say that I have no claim to the property.

I wonder if it is to do with that.

I will get husband to talk to them tomorrow again.


Yours

Calley

It is not strange going through a solicitor. The mortgagee is covering themselves against you later saying you did not understand what you were signing and what the implications were. It is also to prevent you preventing a sale later on if they need to recover their money. This is why they want you to see a solicitor and then want that solicitor to sign to say you have had the advice. It is standard practice.

You do of course have a claim on the property though as it is the matrimonial home and as such you could at any stage register your own caution to prevent sale. You need to be wary of signing something saying you have no claim on the property which could be subsequently used against you in divorce proceedings. You may think that will never happen but you can never tell. This is why they need you to take independent advice.

Bossyboots

muzer wrote:

On a similar line my partner isn't on the mortgage at the moment but when we remortgage in the next couple of months it will be a joint mortgage. Is it a legal requirement that we are both named on the deeds of the house (we aren't moving just remortgaging), as at the moment only my name appears on the deeds.

It will create the same situation as the OP here. Your partner will be asked to sign to say they have no claim on the property and then be asked to prove they have taken independent legal advice in relation to the situation should you default.

Ember999

Isn't the whole point of going on the mortage to enable them to have a claim on the house?? To achieve JOINT OWNERSHIP?

I for one, wouldn't add myself to a mortage then sign to say I had no rights to the property. Sheer stupidity!

The whole situation costs around £600 to be added to a mortgage and the deeds. I know this to be fact as I have done it myself in the past.

The mortgage is 're-done' in joint names, all by a solicitor, you are added on to the deeds (by way of a 'notice of variation') and you then BOTH become legally entitled to the house and both responsible for the mortgage.

If you are not doing it in this manner, what is the point of taking on the mortage debt without the security of 'jointly owning' the property and both being on the deeds?

Think before you do this hon, silly move in my opinion. Get yourself on both the deeds and the mortage!

muzer

Thanks Ember999. Yes, I can't speak for the OP but the whole point of my partner going on the mortgage is to make things more fixed and stable. She is expecting our first baby in a couple of months and we'd like everything sorted out by then. Up until now it hasn't been something that we've thought about. I got the original mortgage in my name because it was easier and we could borrow more money but now our situation has changed.

Ember999

muzer wrote:

Thanks Ember999. Yes, I can't speak for the OP but the whole point of my partner going on the mortgage is to make things more fixed and stable. She is expecting our first baby in a couple of months and we'd like everything sorted out by then. Up until now it hasn't been something that we've thought about. I got the original mortgage in my name because it was easier and we could borrow more money but now our situation has changed.

Nice to see you putting your partner on the mortage and the deeds to the house, thus providing security for both your partner and your soon to be born child. Too many men ask a girl to move in with them (his house) and she has no rights to the property, hence no security. Living together in England offers no protection as there is no such thing as 'common law wife' in the eyes of the law. You are doing 'right' by your woman and child, giving her a home and proof you will be providing for her and your child. Hats off to you :T :T

muzer

Thanks for your kind words but I don't see it as anything special. I am just providing the security that my partner and baby need and deserve. Anyhoo I've just been on the phone to a solicitor who thinks that it will cost about £275 (inc VAT) to add my partner onto the deeds. The mortgage which i'm thinking of going for is with the Nationwide, who, I believe, offer free legals. If we apply for the joint mortgage with Nationwide (the 2 year fixed rate) and then approach the solicitor to sort out deeds / land registry would this £275 be our only outlay or are there hidden costs which we haven't thought of.

One strange thing when I spoke to the solicitor his first words to me were "To be honest you'll be spending money that there is no point spending!! He then told me that if I had a will which left my partner everything there was no point in changing the deeds and mortgage to joint names - it would just be a waste of money!!!

Debt_Free_Chick

I agree with Ember - it's not as simple as being added to the mortgage. The property also has to be transferred to joint ownership. Normally, this would require a remortgage, but perhaps your lender is being generous and effectively remortgaging you both onto the existing deal?

My understanding is that some conveyancing is required in order to transfer ownership to both parties - conveyancing is simply a term that means transfer of legal title to a property.

I think you definitely need to see a solicitor to make sure that the lender is doing exactly what you want.

Regards