You can’t remortgage the property in your own name while it’s owned solely by your father. A lender will only take a mortgage charge from the legal owner(s) on the title.
So the legal routes tend to be one of the following, and the “right” one depends on what you’re trying to achieve.
Why you can’t just take a mortgage on your father’s house
A mortgage is secured on the property. That security has to be granted by the registered owner. If you’re not on the title deeds, you can’t offer the property as collateral, even if you live there and even if your father agrees in principle.
Option 1: Your father remortgages in his own name, then gifts you the money
If your father is happy to borrow against the property, he could take a mortgage himself (subject to affordability, age, and lender criteria), then gift you the proceeds.
This keeps ownership unchanged, but it means:
- the mortgage is his responsibility
- the lender will assess his income and circumstances
- if he’s older or retired, later-life lending may come into play
Option 2: You buy the property from your father (transfer of title) and mortgage it
If the goal is for you to raise £100k and give the money to your father, the cleanest structure is usually a purchase in your name (or joint with your partner), funded by a mortgage.
This is legal, but it becomes a normal conveyancing transaction and the lender/solicitors will want it documented properly.
Concessionary purchase / below-market-value sale
If your father sells to you for less than market value, that “discount” can sometimes be treated as gifted equity (effectively acting like your deposit), depending on the lender.
Two important points:
- Stamp Duty is based on the price you pay, not the market value, but the true price and any incentive/discount must be declared to your solicitor and lender.
- Some lenders base their maximum loan on the purchase price, others will lend against the market value where the discount is classed as gifted equity. This is why lender selection matters.
Option 3: Add you to the title and mortgage jointly (less common, but sometimes possible)
Your father could add you to the property title (transfer of equity) and then you and your father apply for a mortgage together.
This can be messy in practice:
- it ties your borrowing capacity to his
- lenders will assess both of you
- it creates joint legal and financial exposure
- it can complicate future plans (and tax/estate planning)
It’s usually not the first choice unless there’s a clear reason.
“Is it legal?” and the “property hasn’t increased in value” point
Yes, it’s legal to raise money and pass it to your father — what matters is that the transaction is transparent, properly documented, and the lender understands the structure.
The fact the property hasn’t risen in value over four years isn’t a problem in itself. The lender cares more about:
- current valuation
- affordability
- property suitability
- the legal structure of ownership and the transaction
What you should do next
- Ask your solicitor to confirm the cleanest ownership route (father borrows vs you purchase vs joint ownership).
- If you want to raise £100k, get a broker to check which lenders will treat a discount as gifted equity (if you’re buying at undervalue).
- Make sure your father takes independent legal advice, particularly if he’s transferring the property or equity.
