Posted on 18 February 2013 by M Puddick
I bought my house 7 years ago on my own. I married in 2011 and as my husband also has a flat with a mortgage in his name we haven't put him onto my mortgage or me onto his as yet. We live in my house and let his flat. Now my discounted period is up and I want to remortgage, he also could do with remortgaging the flat, which would presumably now have to be a buy-to-let. Neither of us need the other to improve our financial situation, we can both easily cover our own mortgages. Is there any reason why we should or should not move to a joint mortgage on the house, and should it also therefore be a joint mortgage on the flat too? Thanks.
As you say that neither of you need each other to improve your financial situation, then there doesn't appear to be a monitary reason to add either of you to your respective mortgages. Many people in your situation are happier keeping things as they are, however if you did decide to be added to each other's mortgage, then you should look to protect your position. We would normally suggest that although the mortgage would be a joint one, the actual ownership of the property is set up under a 'Tenants in Common' arrangement, where each party's share of the property is specifically defined, unlike 'Joint Tenants' cases where any equity is a straight 50 / 50 split.
The process of adding someone to a mortgage is called a "Transfer of equity" and is a relatively striaght forward to do. You can do it with your existing lender or move to a new one if there are more beneficial deals available. Cost wise, most lenders will offer a free valuation, along with using their own solicitors and covering the cost of the standard remortgage costs, however you will normally have to pay for the actual setting up of the new joint charge, which is typically in the region of £250.
If you'd like to know more, then please let me know and I can arrange a convenient time for you to speak to one of our consultants.
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