Sell our mortgage

B

Bellop

Guest
Ok, I know this is probably a bit far out there, but if possible it could help a lot of potential home sellers and buyers?

We have a house in negative equity, but a cheap tracker mortgage as well.
If someone would buy our house at todays value and get a current mortgage on it they would end up paying more for the house than we would (over the remaining course of the mortgage), if they would even be able to get a mortgage

Would we not be able to set up a legal contract in which we have the buyer pay our mortgage and they get to use the house and get ownership (or buy it at reduced rate) down the line
 
Bellop said:
Would we not be able to set up a legal contract in which we have the buyer pay our mortgage and they get to use the house and get ownership (or buy it at reduced rate) down the line
Click to expand...

If you move out to let the new "future owners" move in, then it's no longer your principal private residence (PPR), and so likely you wouldn't contractually be able to hold on to your nice tracker, but have to move to your banks current rate for buy-to-let loans.

If they don't have a PPR clause which would rule it out, then it may be possible but your contract with your mortgage provider would need a lot of detailed legal analysis to determine if there were any gotchas. This kind of analysis is not cheap, and would have to be repeated by a different legal team for the people on the other side of the contract. Then you'd need a water tight third party agreement with you and the future owners. The cost of this kind of legal review would run high I think. I can't imagine seeing much change out of €30,000.
 
I can't see how that would work.

If you sell your house, you would have to redeem your mortgage. You can't transfer the house and mortgage.

You could rent your house to New Family and fix a lease for the remaining period of your mortgage.

You could give them a contract to buy your house on expiry of the mortgage.

But it's too complicated. What happens

  • if they don't pay the rent
  • if interest rates rise or fall
  • if they want to move house
You could ask the bank's permission to sell the house and accept the proceeds of sale in full and final settlement of the mortgage,but they are unlikely to accept this.
 
You must log in or register to reply here.
Back
Top