Transfer mortgage to a sibling

springer85

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Does anyone know is there any easy / quick way to transfer the balance of a mortgage to a sibling ? House was bought in 2005 in my own name . we both lived in the house so we split the mortgage payments . since I moved away to Oz he has being paying my mortgage , Now that im home with my new partner we want to get our own place. He was never on the mortgage but can i transfer the mortgage and deeds into his name so i can get a new mortgage with my partner?
 
There's no easy / quick way.

He'll need to apply for a mortgage in his own name, and bank to accept him. As the house is in your sole name, you'll need to effectively 'sell' the house to him. You'll both need to engage a solicitor to carry out conveyancing (his will complete what's required for bank), he'll pay stamp duty, and you'll pay capital gains tax (if there was a gain).

I don't know if there's anyway around it for example if you can show although you were legal owner sibling was beneficial owner and had been paying mortgage on their own.
 
You will need to get legal advice on this. The house is in your name and you can't just transfer it to your sibling. My best bet would be that your sibling would need to purchase the home from you, you pay down the existing mortgage in your name and they have to take out a mortgage for the purchase price.

There are a large number of potential issues that need to be considered also. You have essentially been renting your home to your sibling in return for them paying the mortgage. Has this been declared to the revenue for tax purposes.

Does your sibling have the required salary/deposit to purchase the house outright.

The simplest thing would be for you and your wife to move into the house and your sibling to find an alternative solution.
 
Hi springer

It's probably best to give all the details so that we don't have to guess too much.

Current value of existing house:
Price at which you wish to sell to your brother if less:
Mortgage lender:
Amount of mortgage:
Term remaining:
Interest rate e.g. is it a cheap tracker?

Sibling's income

Value of the house you want to buy
Deposit you have available
Your income
Your partner's income


Is everyone agreed that the existing house is 100% yours? For example, is your sibling claiming that it was understood that he owned half the house?

Brendan
 
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