Posted on 29 March 2011 by A Stoddart
My daughter and her husband are buying a house but they are £50000 short. She has a buy-to-let property with a mortgage of £72000 and equity of £50000. Could I be added to her mortgage and be tenants in common with her and give her the equity for her husband and her to buy the house they want?
I don't think that your daughter's Buy to Let lender would have a problem with you joining her on the title and being subject to the covenants of the mortgage. You would need to meet their current lending criteria but if anything you would be strengthening their position.
With regards to the ownership of the property, your solicitor will be able to arrange the transfer and ownership so that it accurately reflects the amount each of you have invested in it and ensure that both your interests are adequately covered. Whilst speaking to your solicitor I would ask about whether you can achieve the same thing by registering an interest. This would not need the Lenders permission and you would not have any liability towards making sure the mortgage is paid. I do not think your position would be quite as strong because the Lender would have a prior claim on the property but it is certainly worth discussing.
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