mortgages one name on deeds

D

dave34

Registered User
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my self and girlfriend are looking into getting a joint mortgage for a self build, does anyone know which lenders would allow just one name on the deeds?
 
Pretty much all of them will allow it as long as it is 2 on mortgage one on Deed and not the other way around they're fine with it, obviously its for tax, transfer of site reasons??, they will require that the non owning spouse sign a form of confirmation that they have no interest in the land and they understand that they cannot block the bank from taking back the property on repossession and also that they are still responsible for the pmt of the mortgage.
 
just about to get land transfered from father to me, as its a gift i wont have to pay tax but have just found out that my girlfriend would have to pay gift tax i think? we didnt realize this and have been told if its just my name on the deeds we can avoid this tax bill. dont know how mortgage companys would view this scenario must be loads of people out there with this situation, I dont think i would get a mortgage on my salary alone.
 


Are you sure about this? I don't think they will - I think the aggravation factor of "what happens when it all goes horribly wrong?" is making the lenders far more cagey.

In any event, wouldn't a mortgagor want to be mad to have all the liabilities of a mortgage without any of the benefits of property ownership?

mf
 
thats the way i see it mf1, my girlfriend has no problem signing forms to say she has no interests but can understand how banks must view it too. its a tricky one will have to see what mortgagers say if they ever get back to us, anyone notice how the country has come to a standstill while the races are on!!!!!!!
 

I've had several in the last few months alone where one of the mortgagees only is owner in the same scenario. So the lenders are still doing it. I've insisted on the co-mortgagee being independantly legally advised and have myself strongly advised them about their position. Naturally it is always co-habitees rather than married couples for the tax reasons that are involved which means the non-owner does not enjoy any other legal protection. It's a worrying situation.
 
mF1 yes i'm sure it can be done, banks are only too happy to have 2 people on the mortgage, it's all about financials really! as for tax issues to the OP if your girlfriend is fine with it great but watch it you won't be able to transfer the property into joint names without incurring stamp duty & other taxes, even if you tie the knot which eliminates all taxes as between spouses you would have an tax implication due to the gift from your father, if you transfer into joint names within 3 years from the date of the gift it's called gift splitting and it's as if your wife received 50% of the gift from your father so there's more to think about than just one going on title two on mortgage.
 
Lenders won't always be happy to do this if the couple are not married but in general if the borrowers explain why they want sole title, the lender will agree if the multiples add up.

They will make it a condition of the letter of offer that the non owner receives independent legal advice and may require a letter to verify this as well as the Deed of Confirmation.
 
My understanding is that when a person signs a mortgage they become liable for the sum secured and they also mortgage any possible interest they may have in the property.
 
Why don't you just marry her ! If you are committing to her by having the house etc and maybe talking about family together then make an honest woman of her. I am sure she is worried as well about the fact that she is paying her money into a house with not much security !
 
Getting married solely or mainly to simplify the technicalities of buying a house/home together doesn't sound like a great idea to me.
 
dewdrop said:
My understanding is that when a person signs a mortgage they become liable for the sum secured and they also mortgage any possible interest they may have in the property.
Click to expand...

Which is why the lender requires the non owner to waive any third party interest and seek independent legal advice (in writing) to state they are aware of the consequences of what they are doing.
 
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