transfer from sole to joint mortgage not possible now

I recently got married and my husband wishes to put my name with his on his house (now our house).He took out the mortgage solo and has never missed a payment. The solicitor informed the lender of proposed name addition and lender says we have to apply for a fresh mortgage to have joint mortgage.
We have been told by bank we wont be given go ahead since my husband is now unemployed. So my name cant go on house! We have kids so are covered by family law act. Does this seem strange?There must be lots of people in this position right now.

Ask the bank if they really intend to deny you your legal right under Section 14 of the Family Home Protection Act, 1976 to transfer your property into joint names. Explain that you are willing to execute a deed of confirmation confirming the existing mortgage (i.e. you are accepting that you are taking the legal title subject to the mortgage). Obviously you should take independent legal advice before doing this.

It might help.

Thanks for the prompt reply.I am seeing solicitor next week. Will definitely put your suggestion to bank.The local bank put it to head office before we went filling out forms and they came back with no which we were kind of expecting.Thought we were finished with mortgage applications can't believe we're back at the beginning with this and basically refused!

"14.—No stamp duty, land registration fee, Registry of Deeds fee or court fee shall be payable on any transaction creating a joint tenancy between spouses in respect of a family home where the home was immediately prior to such transaction owned by either spouse or by both spouses otherwise than as joint tenants."

There is no entitlement to transfer ( family home) property into joint names where the property is subject to a mortgage. There is no difficulty where the property is held mortgage free.

I don't that the Bank have to agree. I suspect that its more the fact that its an awkward situation rather than anything else.

In the past, it was common for the spouse and the property owner to take out a new mortgage on the property, redeem the old mortgage held in the sole name and then transfer the property into the joint names, subject to the new mortgage. What would have to happen here is that the Bank would have to join in a Deed transferring the property into joint names with the new spouse taking on responsibility for the mortgage, jointly. Given that the Bank would not now lend to the original owner, I can see their point in not going to the trouble and inconvenience of getting involved.

Having kids does not make it a family home! Its a family home if its a property within which a married couple ordinarily reside.

mf

But they are married mf1? " I recently got married and my husband wishes to put my name with his on his house"

"We have kids so are covered by family law act."

mf

I am in the same situation as yourself, although I am the male in the example.

After we got married I approached the bank about getting my wife's name added to the mortgage/deeds. I was told that it would cost money to do it legally and that it really wasn't necessary since we were now married and in the event of anything happening me she would be legally entitled to the house anyway.

I assume this is true?

RMCF said:

[...] in the event of anything happening me she would be legally entitled to the house anyway.

I assume this is true?

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Basically, yes. On separation or divorce, she'd be entitled to seek a property adjustment order (subject to a whole lot of caveats because the law is complex, she could get a share of the proceeds of sale, or the property would be taken into account in making other financial orders.)

On your death, had you not made a will she would be entitled to all of your estate (if you have no children), or two-thirds to her and a third to your children if you do.

On your death, if you had made a will, she's entitled to half of your estate if you have no children, one third if you do [it's difficult to disinherit a spouse under Irish law - even if you leave all your worldly goods to the dogs home, she retains that minimum right].

"I was told that it would cost money to do it legally and that it really wasn't necessary since we were now married and in the event of anything happening me she would be legally entitled to the house anyway.

I assume this is true? "

The most often used phrase in my day: "It depends!"

If there are kids but no will, they would take a share but spouse could seek to appropriate family home. If no kids and no will, she gets everything anyway.

If there is a will, testator still has power to dispose of own property but spouse is entitled to a proportion of the estate.

So, if its in your sole name and you want to make sure everything ( including the family home) goes to your spouse, make a will.

mf

Maybe I'm in the wrong here but can you not be added to the title of the property without having to be added to the mortgage on it?

Yes, it's a family home.The dog is furious he wasn't mentioned!
Of course I can see the banks couldnt get involved with anything that could jeopardise their security! The lady I spoke to from this major bank did mention the financial regulator!! Its the little people like us that could break the bank!!
I should mention the mortgage(self build) is very small by todays standards.

Mers1 said:

Maybe I'm in the wrong here but can you not be added to the title of the property without having to be added to the mortgage on it?

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When there is a mortgage, title essentially belongs to the lender - so no, you can't just decide to do it. You could do if you wanted, draw up a Deed and sign it but it would not have any legal effect unless the lender was joined in the Deed.

And to OP, I know the Banks position does sound stupid but I can see why they do not want to go this road. If they join you in and you both struggle in the future to make repayments, if they attempted repossession, one defence you might decide to pursue ( although it would probably be unsuccessful) would be, well why did the bank allow us to do it
at the time?

I'd say leave it sit for the moment and with any luck you'll have it paid off in due course and won't need their input at all.

mf

mf1 said:

And to OP, I know the Banks position does sound stupid but I can see why they do not want to go this road. If they join you in and you both struggle in the future to make repayments, if they attempted repossession, one defence you might decide to pursue ( although it would probably be unsuccessful) would be, well why did the bank allow us to do it
at the time?

Click to expand...

To be fair to the bank involved, it has no idea about your credit history either. For all they know there could be multiple judgements against you personally, the way they can check this is to run an Irish Credit Bureau search on you and to do this they will need your permission which will be contained in the new mortgage application.

Hi OP,

If your outstanding mortgage is small and less than half current value of house then if you are married do you not own a larger portion of house than bank? Correct me here. I know lender owns title etc. but surely as the mortgage gets smaller the bank can't retain full title forever?

RMCF said:

I am in the same situation as yourself, although I am the male in the example.

After we got married I approached the bank about getting my wife's name added to the mortgage/deeds. I was told that it would cost money to do it legally and that it really wasn't necessary since we were now married and in the event of anything happening me she would be legally entitled to the house anyway.

I assume this is true?

Click to expand...

But could you claim mortgage interest relief as a couple without adding the spouses name to the mortgage/deeds?