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Joint Names On Deeds But Not On Mortgage
9 Answers
Can you buy a property in joint (or even three owners) but only have a single name on the mortgage?
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In more detail . . . If two people were to purchase a property as 'tenants in common', then each would own a half share in it. One person couldn't obtain a mortgage on the whole property because he/she would only have half of it to offer as security to the lender. If two people were to purchase a property as 'joint tenants', then it would be their '
02:31 Fri 12th Mar 2021
In more detail . . .
If two people were to purchase a property as 'tenants in common', then each would own a half share in it. One person couldn't obtain a mortgage on the whole property because he/she would only have half of it to offer as security to the lender.
If two people were to purchase a property as 'joint tenants', then it would be their 'partnership' which owned the whole property. If a lender was crazy enough to provide a mortgage to one of those persons, and that person then died, the house would automatically become the property of the other joint tenant, leaving the lender with no security against the loan which was due for repayment from the borrower's estate. (i.e. unless the borrower had enough money in the bank to pay off the loan, the lender would lose out).
It ain't gonna happen!
If two people were to purchase a property as 'tenants in common', then each would own a half share in it. One person couldn't obtain a mortgage on the whole property because he/she would only have half of it to offer as security to the lender.
If two people were to purchase a property as 'joint tenants', then it would be their 'partnership' which owned the whole property. If a lender was crazy enough to provide a mortgage to one of those persons, and that person then died, the house would automatically become the property of the other joint tenant, leaving the lender with no security against the loan which was due for repayment from the borrower's estate. (i.e. unless the borrower had enough money in the bank to pay off the loan, the lender would lose out).
It ain't gonna happen!
You can get a 'tenant in common mortgage' for your share of the property if that's the way it is owned, you'd probably need a specialist mortgage broker.
Lets say the property is worth £900,000 and three people buy it with equal shares of £300,000. Two pay in cash, one has a deposit of a third - he can get a mortgage for £200,000 secured against his share of the property. If he defaults the other two will not be liable. If he dies the other two will not automatically inherit.
Lets say the property is worth £900,000 and three people buy it with equal shares of £300,000. Two pay in cash, one has a deposit of a third - he can get a mortgage for £200,000 secured against his share of the property. If he defaults the other two will not be liable. If he dies the other two will not automatically inherit.
The answer is yes, but finding a mortgage company to do it is probably another thing. I did one about 20 years ago,. In Basic terms the Mortgage company would take an Indirect Legal Charge. The other owners would have to pay for independent Legal advice and sign legal documents to waive all their rights in the event of default.
In the case of your death occurring they would insist on a life policy assigned to them to repay the Mortgage.
The big BUT is that was 20 years ago and things could have changed by now.
In the case of your death occurring they would insist on a life policy assigned to them to repay the Mortgage.
The big BUT is that was 20 years ago and things could have changed by now.
Basically you need to shop around
I cdnt do this in 1999 but since I was the fella wivda money it made no sense having both joint mortagees (or were we mortgagors)
I was insisting on joint title
and at that time they demanded joint mortgage and then of course made difficulty about the student joint mortgagor
there was a lot of " I want to do what I want: not to do what is easiest for you" - there was NO "this lessens risk for the lender" as the student cd never have paid anyway. In short the usual, "get him to sign anything and get hold of his money". their little piggy eyes like dinner plates at the thought of the commission....
in short both joint
I cdnt do this in 1999 but since I was the fella wivda money it made no sense having both joint mortagees (or were we mortgagors)
I was insisting on joint title
and at that time they demanded joint mortgage and then of course made difficulty about the student joint mortgagor
there was a lot of " I want to do what I want: not to do what is easiest for you" - there was NO "this lessens risk for the lender" as the student cd never have paid anyway. In short the usual, "get him to sign anything and get hold of his money". their little piggy eyes like dinner plates at the thought of the commission....
in short both joint
1 to 9 of 9
