Removing name from deeds

Hi,

Is it possible to remove your name from the deeds but keep your name on the mortgage. Will the mortgage co allow this or how do they view it as a general rule. I own a property with someone else who is willing to be bought out for a small sum but as I do not qualify for a mortgage on my own they are willing to keep their name on the mortgage and I contunue make full repayments.

Is this a costly and complex scenario: we have not gone to solicitors as yet and don't even know if it is possible.

Thanks. Mir.

It may depend on your relationship with the second applicant. If you are unmarried partners and/or the second applicant is the higher earner some lenders may be reluctant to this as it may not be in the favour of either the lender or the second applicant.

But to answer your question it is possible to remove a name from title deeds and have a second person on the mortgage only subject to your lenders authorisation. You will need to engage a solicitor to remove the name and you are really taking a new mortgage. The easiest way to do this is by redeeming the existing mortgage and taking out a new one - joint borrowers sole title.

You could also look into the possibility of the second person being a guarantor.

Thanks PM1234, I think we would have problem with the lender then.

Would we be able to write up and agreement just through a solicitor and not approach the lender at all. Basically, although we have agreed between ourselves that he will be bought out for x amount and I will make all the repayments, I need a way to safeguard the good will between us at the moment. I guess he could still make a futher claim on the equity down the line if we have nothing in writing. Will something in writing even protect this
possibility or does he have to come off the deeds entirely?

Thanks. Mir.

The lender gave the mortgage to two people and the property belongs to the lender until such time as the mortgage is repaid. To make any changes including removing a name from the title deeds of a mortgaged property you will need the lenders authorisation.

If you decide not to go down this route and retain both names on the title deeds and mortgage, you are both joint owners of the property. Even with an 'agreement' in place, these things can get messy down the line.

It sounds like there is no surefire way around this then without his name coming off the deeds with the lenders approval. Thanks once again.

Taking a name off the title deeds means you will be the sole owner of the property. Having the second applicant on the mortgage only will assist you in getting a higher mortgage with the lender but it means he still has certain entitlements as (on paper) he is contributing to the mortgage. Also, for example, if you decide to re-mortgage he would have to sign the loan approval if he is still a joint borrower. This is possible but it will also depend a lot on your relationship with him.

Is there any way a family member could assist you in being a guarantor on the mortgage? If your circumstances change in the future it is easier to remove their interest and in the meantime the lender would have more security than what you are eligible for as a sole applicant.

Again all is subject to the approval of the lender.

Thanks again PM1234, no, there is no one that I can use as a guarantor on the loan and I am certain that I will not qualify on my own. The only way to keep the property is if he stays on the mortgage (and deeds). He is very willing to waiver his rights over anything above what we have agreed, it is his idea to do what we can to keep the property. Do you think it is worth while seeing what a solicitor can draw up, it may not be watertight in the courts eyes but I think its our only chance?

Personally I'd approach the lender to see if they are happy for the title to be transferred into your sole name. Its worth a phonecall and it will be easier for you to plan once you know what the lender is prepared to allow. If they allow a transfer of title and for your partner to remain on the mortgage as a joint borrower, you could then look at getting a waiver drawn up. You will need to have your solicitor involved. The best of luck. I hope it works out.

I know one bank do what they call "joint borrowing V's sole title" - This allows two names on the mortgage borrowing but only one on the title deeds. This is used in two cases 1. when an unmarried couple are building on a site that one has been "gifted" the site from their parents. This avoids their parents having to pay any gift tax for gifting the site to their son/daughters partner, who is not a relative. 2 where a parent joins with a son/daughter for income multiple purpose (son/daughter might not have the capacity on their own. The bank strongly advises independent legal advice when this is required. However I don't know if they will change to this if the mortgage is already in place.