Capital Raising on a Half Share

Posted on 15 November 2011 by Edward


I separated from my wife just over a year ago. My wife has stayed in the former marital home with our children and I live in a mortgage free inherited property that I own 50/50 with my sibling.

In order to finalise the divorce I need to pay my wife a lump sum at which point she will release me from the mortgage on the former marital home (she has already arranged this facility).

Would it be possible for me to get a mortgage on the property I am living in even though I only own 50%? My sibling is willing to sign any necessary paperwork but they already have a mortgage on their own home.

The amount I need to borrow would be approx. 25% of the total value of the inherited property (i.e. 50% of my share).

Edward

I certainly think, subject to meeting the usual underwriting requirements, you should be able to raise a mortgage on your share of the property. 

Your home will be registered in the joint names of you and your sibling and so they will have to be named on any mortgage secured on it.  This will also mean that they will be jointly and severally responsible for meeting the mortgage payments and for any loss made if the property is sold in possession by the lender.  For this reason I think you should both get independent legal advice before arranging a mortgage.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.

Peter

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.

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