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Aston Lawyer
Aston Lawyer, Solicitor
Category: UK Law
Satisfied Customers: 10176
Experience:  LLB (HONS) Over 23 years legal experience specialising in Property law and Wills/Estates
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Client wishing to remortgage his property.Because of age the

Customer Question

Client wishing to remortgage his property.Because of age the term of mortgage is being restricted so can we transfer the ownership and also the mortgage in son's name while protecting the interest of the parent whose money has been utilized to buy it?
Barclays are the lender Would they agree?
Submitted: 1 year ago.
Category: UK Law
Expert:  Aston Lawyer replied 1 year ago.
Hello and thanks for using JustAnswer.
My name is ***** ***** am happy to assist you with your enquiry.
The problem your client has is that although it is possible and feasible for his son taking on a new Mortgage and having his name on the Deeds (provided he qualifies financially to get the Mortgage of course), Barclays will not permit a third party (your client) having a financial interest in the property.
This is because, Lenders do not want a party, who is not on the Mortgage, having any financial interest in a property, as this may jeopardise their security/Mortgage.
Therefore, if your client proceeds, he won't be able to have any formal Charge in his favour, as the Solcitor dealing with the transfer for his son would have to disclose this to Barclays, who in turn are almost definitely going to then refuse to grant the new Mortgage.
The best your client can therefore achieve is a private agreement between himself and his som, setting out his financial interest in the property. This isn't of course ideal, as his son could, in the worst scenario default on the Mortgage, meaning that either Barclays repossess and claim all the proceeds of sale.
It is therefore going to be a case of- can your client trust his son, and does he have 100% confidence in his son, tha the will get his financial interest back at some stage in the future.
I hope this assists and sets out the legal position.
Kind Regards
Al
Expert:  Aston Lawyer replied 1 year ago.
Hi,
If I have assisted you, I would be grateful if you could rate my answer.
Thanks
Al
Expert:  Aston Lawyer replied 1 year ago.
Hi,
Can I assist you any further?
Kind Regards
Al