I am a home owner no mortgage on my cottage and we are considering my fiancee (we are to be married March 2014) buying into the property. Is it possible for him to obtain a mortgage for this and he pays me? The property is worth £350,000 and we are looking for a buy in of £100,000. He does not have any property or mortgage. Thank you.
The short answer is that yes, your fiancee can buy into your property via a "Transfer of Equity", and this can be done with a joint mortgage application of £100,000. The application will have to be a joint one, as lenders will not allow you to be on the title deeds but not to be a party on the motrgage.
In order to protect your remaining equity you can set up the ownership of the property under a 'Tenants in Common' arrangement, where each party's share of the property is specifically defined, unlike 'Joint Tenants' case where any equity is a straight 50 / 50 split.
If you'd like to have an initial discussion with one of our consultants to go through your enquiry, then please let me know and I'll arrange a convenient time for one of them to contact you.
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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.
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