Advice on house selling to a friend

chopper2540

My mate wants to buy my house. Its up for 155k but Id accept 145 ish from him.
My mortgage balance is 119k I owe my parents 22k for a loan on doing it up. As you can see I aint gonna come out with anything but I just want rid cos Im not livin there an its costing me 1k per month.
Total I owe will be 141k.

If I sell the house on the open market I'd have to pay 4k redemption penalty.

Is there anyway I can put my mates name on the mortgage (as if we became lovers/partners). He could pay my parents 22k then after a couple of months we could "split up" which would mean he would only incur the cost to change names over.

Can anyone tell me if this is possible?

Zammo

Cue moral outrage.

brummybloke

i doubt it but it made me chuckle

lawrie28

Good thinking, but what if you fell out in the meantime? and what if he wouldn't let you off the mortgage? Won't happen? seen it with married/engaged couples. ok, bit different, cos your not in a relationship (shh, won't tell the bank), but worht considering. or if you sign him on, but then with the falling house prices reduces his offer......least you don't pay EA feees

country_sport

Simple answer is yes. The bank will love another name on the debt but getting one removed is not so easy.

clutton_2

""If I sell the house on the open market I'd have to pay 4k redemption penalty.""

redemption penalities on the sale will occur whoever you sell it to - your mate or joe bloggs - its the sale and redeeming of the mortgage that triggers the penality

quite frankly what you are suggesting sounds bonkers !!!!

brummybloke

clutton wrote: »

""If I sell the house on the open market I'd have to pay 4k redemption penalty.""

redemption penalities on the sale will occur whoever you sell it to - your mate or joe bloggs - its the sale and redeeming of the mortgage that triggers the penality

quite frankly what you are suggesting sounds bonkers !!!!

i think what they are suggesting is to transfer the existing mortgage deal into both names as a couple and then getting his name removed from the mortgage a time later saying they hav split, hoping that the same product or mortgage will then release him and keep his special friend on the existing deal, hence he wouldnt have to pay a redemtion fee as the mortgage hadnt been redeemed.?

i would say no as i would guess that the lender would expect the other party to take out a new mortgage and be judged on their own affordabilities which may still make him liable for the 4k, im just guessing though but it sounds bizarre

chopper2540

Weve been mates since the world began an he's happy with it. we wouldnt fall out because like he says-he's not a split !!!!-(his words not mine) an its not like im gonna cheat on him so he will take me for everything. Transferring my name off would be no problem as I actually split with my girlfriend a couple of years ago an it was just a 100 quid fee. My query was getting my mates name onto the loan and the deeds an could I do it without refinancing thus effectively he would buy the house without ever having to buy it, if you get me!

Trollfever

You will need to ensure that you do not go bankrupt.

The trustee may apply to the court for an order restoring property to him or her if you disposed of
it in a way which was unfair to your creditors (for example, if before bankruptcy you had
transferred property to a relative for less than its worth). The trustee may claim property which

you obtain or which passes to you (for example, under a will) while you are bankrupt.

From Guide to Bankruptcy:

http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#3

clutton_2

thanks for explaining it brummybloke -

in all probability you will have to apply for a new mortgage in both your names which will mean you paying the penalties to redeem your current one - unless you can re-negotiate them away by talking to your lender. no one on here can advise you as each lender has different criteria which change daily due to the credit crunch. the lender will have to ensure that your mate can pay the mortgage in his own right - as each of you will be jointly and individually responsible for paying the mortgage if the other clears off.

devils_advocate

Is there anyway I can put my mates name on the mortgage (as if we became lovers/partners).

It would still cost you the same amount but at least you'd get a sh*g out of it!