Changing ownership of mortgage from 2 persons to 1

Hi,

I'm looking for some advice on a property.My story is that both I and my brother bought a property during the boom and are now exploring options with regards to the ownership of it as we've reached the end of the road.We are both signed on the mortgage. I am interested in taking the mortgage on,on my own.The mortgage type is tracker.It is with Bank of Ireland.

To date,over the last 2-3 months we have contacted various people on various numbers to see if such an action is feasible.One individual assured us he could do this,after getting a valuation on the property and providing salary details,etc. This 'expert' (BOI employee) subsequently informed us that he could not do this and sent us on further information that would be required in order to attempt to achieve the change such as a 'mortgage modification form' to be sent to the mortgage modification unit.I contacted the number for this unit and was told this unit does not exist and that I needed to complete a 'product modification form' and that they would give me a number for the mortgages person in my own branch.I have done so and have heard nothing to date from this individual.

Can anyone enlighten me please as to what needs to be done,who is to be contacted,relevant numbers,forms etc. to see if this is possible? Also,I obviously want to keep the tracker as is;am I entitled to this?

In essence I want to take the property over from my brother,change it to my name, to see if I can afford this financially.

All information and help most welcome.Thanks in advance.

Most of the issues are covered here, although the post needs to be updated:

A guide to splitting up when in negative equity

You should give full information if you want to get a meaningful answer:

Value of house
Amount outstanding on mortgage
Term remaining
Your salary

Any other loans you might have.

Brendan

Thanks Brendan

The property was valued at 200000 in March.

Outstanding amount to date 222000.

Bought for 293000.

Never missed a mortgage payment/payment has never been an issue.

40 year term (I think).

Bought about 2005/2006 (again, not 100 percent.18/24 months prior to crash) .

I have no outstanding debts or loans beside this of any kind.

I earn 53000 p.a. (approx)

Mortgage amount per month 900

Im happy to assume all of the negative equity.Just want to transfer the mortgage to my name and to sole own property.

I'm awaiting a meeting with my Bank asap,requested an appointment today.

If you applied for a loan of €222k today on a salary of €53k, it would be refused as it would be a Loan to Value of 4.2 times.

The lender has extra security by having your brother also liable for the loan, so they will not let him off.

The only way they might consider it is if you offer them a lump of cash, maybe around €40k to eliminate the negative equity and bring the Loan to Income down. They would probably also want you to surrender your tracker.

So it's not a good idea.

You can do a side agreement with your brother where he renounces his interest in the property and you undertake to pay the mortgage in full. However, that is between you and him, and does not affect the bank. If you fall behind in your payments, he would still be liable for them.

Why do you want him off the deeds and the mortgage?

Brendan

We're both living in it,its too small...293000 bought a shoe box during the boom.Its not big enough for two people.

Is there any kind of contract that could be drawn up by a solicitor that would hold both of us to such a situation?

Also,for example if such was agreed and down the line he decided he wanted back in,I assume he would be entitled to do so because a deal was made outside the parameters of the bank's knowledge,rendering it redundant?

I found this Key Post which might help:

Success. Bank of Ireland allows me to buy out my ex and keep tracker

kingmow said:

if such was agreed and down the line he decided he wanted back in,I assume he would be entitled to do so

Click to expand...

Absolutely not. He waives his right to the property. You undertake to pay the mortgage.

The problem for him would be that he would continue to be on the mortgage until your earnings allow you to take his name off the mortgage. This would prevent him from getting a mortgage himself.

So it would be usual in such an agreement to require the person taking over the house and the mortgage to either refinance or sell within 5 years.

Brendan

Thanks,Brendan