Posted on 20 July 2015 by Miran
Hello, I was trying to get a Decision in Principle but it has taken so long that I was about to lose the property that I wanted and so my family have kindly offered to help me to buy the property in cash. I will split the property 50:50 with my mum. My question is, will I be able to get a mortgage in the future to then buy out my mum's 50% assuming that she is also on the deeds? I have contacted Nationwide and they said I could only raise capital if the deeds were 100% in my name. I assume it must be possible even if we are both on the deeds because this must happen for example when couples get divorced but I don't know how to go about it. I need to know my options so that I can discuss it with my mum so we both go into this fully informed. So any advice that you could give would be greatly appreciated.
It sounds like what you are trying to do is a 'transfer of equity', which is where you remortgage at some point after the purchase and raise funds to buy out your mum's share. Typically you would look to do this after you and your mum have owned the property for 6 months to give you the biggest choice of lenders. I'm not sure why Natiownide said they couldn't do this, but, subject to meeting affordability & lending criteria, there should be plenty of other lenders who we should be able to go to for you.
If you'd like to talk this through in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a clearer idea of how we can help you.
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.