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Thomas
Thomas, Lawyer
Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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my father and i are going to buy a property most of which will

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my father and i are going to buy a property most of which will be funded by his savings, but a mortgage of £35,000 will be required to make up the purchase price. We are both living in a property whichj is on the market, but the owners of the property we are buying want to complete very soon and we have not sold ours yet. Can the mortgage be in my name only and both our names on the title deed as my father is 85 and thus too old to be named on the mortgage. Once the property we are in is sold, we will have the money to cover the mortgage.

Is there a legal way we can work round this?

Hi,

 

Thanks for your question.

 

The mortgage company are very unlikely to allow that. If the size of the mortgage is very small compared to the value of the property then it is a possibility they will allow it but it is something that you are going to have to speak to the them specifically about. If you do not tell them about this then you (and your conveyancer) would be in breach of your mortgage conditions which could entitle the lender to enforce the breach by taking possession of the property.

 

The alternative is if your father is willing to not be named on the Land Registry title for the property, but to take a charge instead. The charge would be similar, though secondary, to the mortgage which is registered as the first legal charge against the property. This means even though he is not named as the owner of the property it could not be sold without his consent. The charge would refer to the amount of money contributed by your father and state that he should be paid upon sale. You can specify other such terms therein.

 

Again, you would have to tell your mortgage company about this and you father's occupation. It would be another breach of the mortgage conditions not to do so.

 

Engaging with the lender is the first issue, their terms will dictate how the issue is to be resolved.

 

If this is useful please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.


Kind regards,


Tom

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Customer: replied 6 years ago.

The value of the property is £215,000 with my mortgage application being for the value of £35,000. If the mortgage company agree I assume what we were originally proposing i.e two names on deeds and one name on mortgage, that is ok legally?

 

As an alternative, could a private mortgage arranged through a solicitor work?

Hi,

 

Solicitors are not permitted to give financial advice and recommendations of that sort I'm afraid.

 

There is nothing preventing two name registered proprietors on the LR legal title with only one such proprietor being named on the mortgage deed; it's merely the prerogative of the lender.

 

Hope this clarifies.

 

Thank you for your very kind accept and good luck.

 

Kind regards.


Tom

Thomas and other UK Law Specialists are ready to help you

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