Posted on 11 February 2011 by Martin
I have two properties, one I live in jointly owned by myself & friend, the second house on a BTL mortgage with my dad named on mortgage/deeds.
1. Will it cost anything for me to ask the mortgage company if they can the do a credit check to see if I can take my dad off the BTL mortgage (as he retires and no longer wants to be named/no financial interest in property). Although I'm aware this will cost £200 I dont want to have to pay this to find out he can't be taken off after a credit check?
2. My girlfriend would like to get on property ladder. She earns £30k and a quick check shows she can borrow up to £110k. My BTL is worth £145k approx and the mortgage is £105k, what would be legal proceedure to transfer the £105k to her name? If she could get a mortgage (with the added benefits of getting better deal for a first time buyer) would I have to involve a solicitor or could the name transfer & administration be sorted between the mortgage companies?
It is very unlikely that your existing Lender will carry out the necessary checks to ensure you can afford to take on the BTL mortgage and release your Father from his covenants without you paying their fee first. The fee is usually charged to cover the administration involved regardless of whether or not consent is given. You can ask but don't be surprised if they say they won't take any action without the fee.
You can't transfer the BTL mortgage into your Girlfriends name without also transferring the title and ownership of the property to her. In this instance you will certainly need a Solicitor because she will be buying the property from you and along with the legal and administrative requirements there will be tax implications to be discussed. From a Lender's point of view they would view this as a new mortgage and if she is going to live in the property then it is quite possible for her to benefit from some of the First Time Buyer deals around.
If you are going to be selling to your Girlfriend then I would question whether or not you need to remove your Father first and again there may be tax implications to be taken into account. I recommend that you seek legal advice before deciding which way to proceed.
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