Transfer of mortgage

[babsflo]

My daughter has split up with her live in partner. They bought a house together in January but my daughter put �20000 down and has paid all the mortgage and bills since they moved in. He has moved back home and doesnt want anything out of the property but my daughter cant get the mortgage transferred solely to her as the building society says she doesnt earn enough. They are happy for me to join on the mortgage with her and transfer ownership. Do I have to go on the land registry? I dont really want to have any ownership just help her get the mortgage. If I do  have to go on it what implications is there for me would I be able to give her my share  sometime in the future as a gift? Will I be liable for any sort of tax?

[Oneeyedvic]

If you go joint on the mortgage - you will be jointly and severally liable for any repayments / arrears / shortfalls. There may also be issues with taxes if you gift her the property (i am not sure) - better if you can go as guarantor for then you will still be liable if she cannot pay but there will definitely be no tax issues at a later date.

[Ian Ralph]

been in similar situation Guarantor was what i was advised to do

[Ian Ralph]

been in similar situation Guarantor was what i was advised to do

[Mrs_Pegasus]

Have to agree with Ian, I am surprised the lender hasnt recommended this.  I do know that you have to have a fairly good income yourself to be able to do this and if you have a mortgage yourself this could also cause a problem.  I would ask to meet with the lender with your daughter and see if you can come to an agreement.  The other possibility is to offer to pay an indemnity insurance which would protect 75% of the mortgage liablity.  Again speak with the lender.