UK Property Law
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Thank you for the question. It is my pleasure to help you with this today. Please bear with me if I ask for more information.
I will answer thethree questions you have asked directly.
There is no reasonwhy you cannot do what you want to do legally, but there are certain practicalproblems.
Firstly, there maybe a redemption penalty on the existing mortgage. So you need to check that.
There is no reasonwhy you and your grandmother can go on the deeds to the house, and you take anew mortgage out in your own name, although very often, the mortgage companywill insist on both people being on the title and the mortgage. Some lenderswill not consider it even though it is in joint names because one of them iselderly. That is their own criteria and not a legal criteria.
If you are notgoing to live in the property, then you simply put that to the lender and theywill decide the correct mortgage for you, which is probably going to be a buyto let type.
Your bad creditrating will almost certainly affect this but it depends to a great extent onhow much you are borrowing and the value of the property.
I would certainlynot try to arrange a mortgage yourself or visit a high street lender and Iwould definitely see an independent mortgage broker who can look at all theproducts in the market and when he makes the proposal, can put a case forward.
I will tell you,but it is not going to be easy, mostly because of your bad credit history.
If the lender looksat it in the way that your grandmother is gifting you a substantial amount ofthe equity, and that you want a relatively small mortgage in comparison, theywill look at it more sympathetically.
Can I answer anyspecific points?
Thank you for your quick response.
So the only thing standing in the way will be my credit rating really, although it's not impossible.
How do we go about getting me on the deeds of the property?
Also is there a way that my nan could transfer the property into my name completely if so what would this require, would it be a gift?
The existing lender might agree to add you to the deeds but that is an extremely unusual request after equity release, but you will not know if you dont ask or rather, your grandmother doesnt ask.
You will need a solicitor to do it if the lender agrees but it isnt expensive or time consuming
Otherwise the solicitor will do it as part of the new mortgage process.
To go into your name completely, the existing mortgage will need to be repaid.
Unless you pay full value for the property then if ever your GM needs money to pay for care fees, the council can ask for the legal fees to come out of the house even if it is in your name.
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