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Switching Name on mortgage

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  • 27-06-2012 2:17pm
    #1
    rexel21
    Registered Users Posts: 27 ✭


    I have a problem as i bought a property with a friend. I initially funded the deposit etc though have no mention on any morgage documents.
    His situation has changed and he now wants his name off it so he can buy elsewhere as he is starting a family.

    I cant afford to sell the house as i would lose everything ive put in due to neg equity etc. The house has a good rental income and a far better interest rate than i would get anywhere these days.

    I cannot afford to buy it at present and have property myself.

    Are there any options available to me to get the morgage transfered and keep the same rate while freeing him up or at least adding my name to it which could free him up to get his own place.

    Any views or comments are welcome


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    #2
    hairyprincess
    Registered Users Posts: 2,294 ✭✭✭hairyprincess


    As far as I know, you would have to apply for a mortgage in your own name


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    #3
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    rexel21 wrote: »
    I have a problem as i bought a property with a friend. I initially funded the deposit etc though have no mention on any morgage documents.
    His situation has changed and he now wants his name off it so he can buy elsewhere as he is starting a family.

    I cant afford to sell the house as i would lose everything ive put in due to neg equity etc. The house has a good rental income and a far better interest rate than i would get anywhere these days.

    I cannot afford to buy it at present and have property myself.

    Are there any options available to me to get the morgage transfered and keep the same rate while freeing him up or at least adding my name to it which could free him up to get his own place.

    Any views or comments are welcome

    Could you afford to take on the repayments? In any event, it's a new mortgage that you will need.


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Ok let me get this, you are not on the mortgage but want to be put on the mortgage for a property in negative equity. Foolish.

    Go seek a mortgage for the value of the property and offer to buy the house of your friend. No lender will give you mortgage to clear the current mortgage as its in negative equity. You will get up to 92% of current value of the property, the rest you need to raise a deposit for. You get a better deal as you have a mortgage at current value and you have dropped the equity, you're friend can be lumped with the equity in the end. There decision to move on after all.

    Also why did you pay the deposit and not get on the mortgage in first place? You seem to think you have some entitlement to the property at present but you have no rights to it. Seems mad you paid deposit for nothing you have legal right to.


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    #5
    rexel21
    Registered Users Posts: 27 ✭rexel21


    Firstly.I can afford the repayments on the current morgage rate but if i was to buy i would not as current ones are not even close to was available at the time.

    Secondly. We have been paying capital off on the morgage and as stands if house was sold any money put up in the past 6 years would be lost. We both lose money but obviously me more than him.

    Thirdly i put up capital initailly as was going travelling and left him to sort out.

    house was 240 and have 196 to pay and currently worth 210ish.

    Thanks for help either way but as i though the only option is get a new morgage as nothing can be modified in the previous one


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    #6
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Am I correct that you paid a deposit and 6 years of mortgage repayments on a property that your friend owns solely?


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    #7
    rexel21
    Registered Users Posts: 27 ✭rexel21


    Correct. Deposit plus and over payments from rent have been used to pay off capital on remaining.

    Guys we are looking at a solution to this not opinions on how the joint investment took place.

    Thanks guys


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    #8
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Might not be as simple as just getting a new mortgage, as the bank would have to sanction a new mortgage in your name whereas they might prefer to continue with the status quo, especially if all repayments are being met, etc. They would also only finance a max of 92%, against an independent valuation, which may or may not be a problem based on your figures above.


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    #9
    Jame Gumb
    Banned (with Prison Access) Posts: 802 ✭✭✭Jame Gumb


    You're unlikely to get a "new" mortgage.

    It might be easier to draw up some kind of legally binding side agreement between the two of you to regularise things.

    Get professional advice.


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    #10
    roro2
    Registered Users Posts: 412 ✭✭roro2


    It might be easier to draw up some kind of legally binding side agreement between the two of you to regularise things.

    This may also need bank consent.


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