Does the mortgage holder's name have to be on the deeds?

[John Rambo]

Perhaps someone can answer this query...I own a half share of an apartment which has no mortgage and I want to raise some money by mortgaging it. The person that owns the other half has no income but significant assets. His name and my name are on the deeds but in practical terms myself and my fiance own the 50% share. Can I apply for the mortgage with her without involving the other party? There's nothing sinister going on and the other party is perfectly happy with what we're doing. Any advice anyone can give would be greatly appreciated and I repeat there is nothing sinister going on from a taxation or stamp duty viewpoint and the other party is perfectly happy with the scenario.

 

[mf1]

Can I apply for the mortgage with her without involving the other party?

No. The lender will require all parties on title to join in the mortgage. There is some academic argument that you should in theory be able to mortgage your share of the property but, in reality, a Bank will not entertain that. If they need to repossess and sell the property to realise their funds, they do not want any additional aggravation.

And if you do remortgage and your co-owner is on the mortgage deed, then they carry equal liability for payment as you do.

mf

 

[PM1234]

In short no. The persons on the deeds will need to be involved.

However you could add your fiance onto the mortgage so that there are three borrowers if your lender agrees. Alternatively you could arrange for the person on the deeds to be taken off and replaced by your fiance ie if the original owner agrees.

 

[John Rambo]

Thanks people...by the sounds of that we won't get the mortgage as the other party is too old and doesn't work. Would it work if myself and my fiance applied for the mortgage and the other party went guarantor? I presume they don't look for P60's etc for a guarantor...merely a statement of their net worth etc? Thanks again

 

[PM1234]

Would it work if myself and my fiance applied for the mortgage and the other party went guarantor?

I'm afraid not. The person whose name is on the deeds will have to be on the mortgage application (presumably a parent). Its a fairly common occurrence.

However they could go on the mortgage application along with you and your fiance so there would be three borrowers which means his/her income multiples won't influence the lender's decision as much. This would mean that your fiance would be liable for the mortgage repayments also so she will need to take legal advice (probably will be made a condition of the offer).

They could also request life cover to be waived due to their age.

 

[John Rambo]

Thanks PM...will explore both options. A three way application or switching the names on the deeds will probably get the deal over the line.