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Taking over Parents Mortgage

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Posted on 14 August 2011

My Mother & Father are going through a divorce. Due to the poor housing market they have been unable to sell. They have a mortgage of £285,000 and the house is worth £380,000.  My long term partner, my sister, her long term partner and I have offered to take over the mortgage, do the house up, sell in a few years and we shall keep all the profit.  My parents would get their £95,000.  Does this sound like an idea that could work?  Can the mortgage simply be signed over to us?


I think this will depend on who is going to live in the property.  If either of your parents are going to stay in residence then I do not think you will be able to transfer to your names or find a new Lender willing to grant a mortgage.  This is because your parent would have a prior right to reside and the Lender would not be able to get vacant possession if they had to repossess the property.

If your parents are not going to live in the property then it depends on what your intentions are?  If, for example, you intend to let it out then it may be possible to get a BTL mortgage in four names based on the anticipated rental income.  The property would have to be in good condition and the rent would need to cover the monthly mortgage payments plus an extra 25-30%.

You will need to take independent legal advice to protect both yours and your parents interests and I recommend that you speak to one of our mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to give you specific advice you on your situation.



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