Deeds help please

[imissworthing2]

Hello all,

A situation has arisen in my girlfriends family.

Her mum seems to be very close to getting her house repossessed (sp) about 4months behind in the mortgage I think. She hasn't got a job and is getting on abit, we are probably the only people in her life to be in a position to help her financially. She also already owes us afew thousand from borrowing previously.

What I was thinking was: House value 150,000, mortgage left 30,000 ish. Can we take over the remaining mortgage and then get put on the deeds as having a 20% (30,000/150,000 x 100) ownership of the house?

I hope it doesn't come across as being too harsh but I don't want to be paying somebody else mortagage for the forseeable future when we are only renting ourselves.

Any help is greatly appreciated

 

[TottonSeagull]

The only way to take over the house would be to buy it off your gf's mum. But then you will have pay stamp duty, solicitors etc. The lender will not entertain changing names on the mortgage if she is 4 months behind. The best thing you could do would be to lend her the money and place a charge on the house for the money leant. You can do this via a solicitor and they will draft a deed for you all to sign that will registered against the title deeds at the Land Registry. The lender would still have the first charge (I.e. get paid first when sold) but you would have a second charge over the property so would be paid out before any monies are paid to your gf's mum. Shouldn't cost you too much to get a solicitor to do this for you.

 

[bravohotelalpha]

I would speak with the mortgage lender. From their point of view coming to an acceptable arrangement will usually be preferable to repossession. I think it is best for you to seek advice from a lawyer about the best way to protect your interests - I'm sure it can be done. Good luck.

 

[bravohotelalpha]

I agree with tottonseagull. I was going to say about the second charge etc but not 100% sure of my facts. I think this is the way to go and should be fairly straightforward and should be ok with the mortgage lender.

 

[imissworthing2]

Cheers boys,

Apologises for my naivety in advance but can we not just start paying her mortgage repayments (put the money in her current account for her to pay if necessary) and then get her to put us on the deeds for whatever percentage of the house we would own.

 

[Cheshire Cat]

Also what would happen if you and your girlfriend split up. It could get messy if you effectively had a charge of 20% of her mother's house and the split was mutually acrimonious.

You need to talk to the lender and a lawyer (and her mother).

 

[Cheshire Cat]

Cheers boys,

Apologises for my naivety in advance but can we not just start paying her mortgage repayments (put the money in her current account for her to pay if necessary) and then get her to put us on the deeds for whatever percentage of the house we would own.

You can pay her repayments if you want, but in terms of changing the ownership the lender would have to agree it - which is why you need to speak to them. Also if you want to buy in the future, this could reduce your available potential mortgage since you effecively are already paying one (albeit second hand), thereby reducing your affordabililty.

 

[bravohotelalpha]

I don't think it works like that, I think you need to arrange for a second charge on the property - but you really should speak with a solicitor about this.

 

[bravohotelalpha]

Cheshire cat has raised two very important points - which is why it is important that you discuss this with the lender and a lawyer

 

[legal seagull]

As you can see from my username, I deal with this sort of thing all the time. You could either pay off [redeem] the exisiting mortgage and stand in the place of the mortgagee by securing what you have paid with a first legal charge or redeem the mortgage and enter into a declaration of trust with your Girlfriend's Mum which would give you a share of the equity in the Property.Either way you need to go and see a local Solicitor asap with your Girlfriend's Mum in the first instance. Hope this helps- but either way it is not difficult to set up.

 

[imissworthing2]

Also what would happen if you and your girlfriend split up. It could get messy if you effectively had a charge of 20% of her mother's house and the split was mutually acrimonious.

You need to talk to the lender and a lawyer (and her mother).

Yeah I do appreciate this point but we've been together 12 yrs now, have a 2yr old together and things seem quite stable. Her mother is an absolute nightmare, you get half truths from her at best, normally nothing at all as in this case until it's too late. My gf is rubbish with her aswell just pussy foots around her and is afraid to say anything that might upset her whether its necessary or not.

Jesus, I've gone off on one there, apologises again

I suppose if I'm honest I would like to eventually buy the whole place off her eventually (2/3 yrs time), would that change anything we'd be doing now?

 

[ArfurW8]

Definitely get a solicitor involved,many years ago my father bought his mothers council flat with the proviso that if she sold she would give him his money back.
About 10 years later his half brother persuaded her to sell and to buy one of those homes on a glorified caravan park,he never did see his money again.

 

[bravohotelalpha]

In the most ideal scenario it would be important to see a solicitor asap - in light of what you have just shared re gf and gf mother I would say it is absolutely essential you see a solicitor soonest - as legal seagull urges you to

 

[imissworthing2]

yeah sounds like that will be the plan alright, Does anyone know how long a repossession normally takes? Basically, how much time we have to sort this mess out...

 

[The Hon Sec]

Talk to the lender asap, explain the situation and take legal eagles advice.

 

[TerryT]

Repossessions normally take some time nowaday's, It usually takes several dates before a county court Judge, a Judge will nearly always be on the side of the homeowner if they have a chance of sorting out the arrears and future mortgage payments

 

[bravohotelalpha]

It will all depend on what stage things are at - you really should contact the mortgage lender tomorrow. They will be able to advise you about the current position and you can tell them about what you propose to do about it. Assuming they are in agreement, you can then plan the way forward with them. These discussions will probably need to be sanctioned by gf mother - either in person or over the phone - the mortgage lender probably won't speak with you without her approval. Whatever you do, don't delay contacting them

 

[Mutts Nuts]

Hello all,

A situation has arisen in my girlfriends family.

Her mum seems to be very close to getting her house repossessed (sp) about 4months behind in the mortgage I think. She hasn't got a job and is getting on abit, we are probably the only people in her life to be in a position to help her financially. She also already owes us afew thousand from borrowing previously.

What I was thinking was: House value 150,000, mortgage left 30,000 ish. Can we take over the remaining mortgage and then get put on the deeds as having a 20% (30,000/150,000 x 100) ownership of the house?

I hope it doesn't come across as being too harsh but I don't want to be paying somebody else mortagage for the forseeable future when we are only renting ourselves.

Any help is greatly appreciated

One option would be to see the bank remortgage the property for 30,000 over a period you can afford,have the deeds transferred into your names and let the old girl live there.Every ones a winner and you get a very good medium term investment.

 

[bravohotelalpha]

Even assuming the mortgage lender is happy with that, there may well be other family members who are not. Also, as Cheshire cat pointed out having this type of arrangement may well go against this guy and his gf if they go for a mortgage for themselves

 

[TottonSeagull]

One option would be to see the bank remortgage the property for 30,000 over a period you can afford,have the deeds transferred into your names and let the old girl live there.Every ones a winner and you get a very good medium term investment.

The lender would be not be happy with this as the mum would still living in the house. Most lenders these days would insist on vacant possession and even if they were willing to do this then the op would need to buy the house from her and would have to pay legal costs and stamp duty if sale is over £120k. Lenders won't like the fact the mum still lives in the house and op owns it, they would have concerns as to how to get the house back in the event the op doesnt pay the mortgage as they will have a sitting tenant. As hard as this may sound if the op remortgages he will be responsible for the debt and if the mum decides not to pay, unless she has signed a consent to mortgage form he would find it very hard to sell and it will have an impact on the op buying his own place. The best thing would be to clear the arrears and for the mum to start paying the monthly payments. If the mum has not been in touch with the lender she needs to ASAP as the lender will start to repossess very soon. My experience of this situation is that in 6 months time you will be in the same position that the mum hasn't been paying. Be very careful as this could end any chance you have of buying yourself.