Posted on 24 March 2011 by Louise Gill
My family and I live in the same house as my parents. We are currently looking into renovating the house and want to borrow approx £150k however the house is in my fathers name only. He is 68 years old and has a pension and other assets. I currently earn approx £85k plus benefits and therefore it would be myself who would pay the loan not my father. Is there a way of getting a mortgage out on the property jointly with my father? Or is there another way to borrow this level of money?
As you are living in the property in might be possible to persuade a Lender to either accept you as guarantor for a mortgage in your father's name or to arrange a mortgage in your joint names without changing the property title. You and anyone else in the property over the age of 16 would have to sign a consent to mortgage giving the Lender first claim on the property in the event of repossession.
The alternative is to transfer the property to your joint names and arrange a joint mortgage. Please call on 0344 346 3672. This may have Capital Gains Tax and/or Inheritance Tax implications and you should take expert legal and tax advice in addition to mortgage advice.
Without knowing the value of the property, I suspect that the amount you want would be too much for an Equity Release provider to consider.
I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.
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.