Add name to deeds, but not to mortgage?

therealdelboy

Long time lurker, but I really like the board.

My ex-partner and I have gone our separate ways, and I need to pay her off a certain amount to buy her share out of the house.

I’m quite happy in the house, and don’t want to sell up, but am coming in about £30k short to buy her out.

A good friend has offered to help me out with the £30k shortfall by buying a share in the house. (About 5% of the value of the house)

My current mortgage is with BM Solutions. I don’t think they would allow my friend to join me on the mortgage, as she already has a residential mortgage with the same provider and I would have thought that they are unlikely to allow her name on two residential mortgages.

Is it possible for my friend to buy a share in my house without adding them to the mortgage, or is it easier and simpler for them to lend me the money as an unsecured loan?

AndrewSmith

You will find that it will not be possible to add a name to the deeds of the property without them being added to the mortgage, for the simple reason that you don't actually own the house, Birmingham Midshires do.

You can have an agreement drawn up with solicitors to the effect that your friend is giving you £30,000 in return for that amount of the remaining equity in the property on subsequent sale, however that is i believe as far as you can go without actually adding her to the mortgage.

Conrad

Your friend might be able to secure a second charge over the property as long as BM Solutions have no issue with such.

That to me is the obvious starting point and gives her guaranteed security. The charge would be registered at the Land Registry and might be best arranged by a Lawyer although if it were me I would try an arrange without a Lawyers assistance.

therealdelboy

Thanks all for this !

chappers

Conrad wrote: »

Your friend might be able to secure a second charge over the property as long as BM Solutions have no issue with such.

That to me is the obvious starting point and gives her guaranteed security. The charge would be registered at the Land Registry and might be best arranged by a Lawyer although if it were me I would try an arrange without a Lawyers assistance.

As Conrad says this might be possible but would all depend on how much equity was in the property

therealdelboy

There is about £330k equity in a property worth £600, so it should be OK

chappers

Will all that equity still be there once you have settled up with the ex . Are you remortgaging and it is just you can't borrow the extra £30K. The thing is would have thought BM would want a decent bit of equity over the £30K before allowing a second charge in case of any downturn in house prices.
Are you paying off the ex from other sources and if so could you not remortgage/get an extra advance on the house for the extra £30K.

therealdelboy

Even with my friend coming in, there should be about £250k equity in the house. Am paying off the ex with savings tied up in the stock market.

chappers

with that much equity would have thought a second charge would be ok have you considered remortgaging for the extra 30K