Transfer of Mortgage

Posted on 20 April 2012 by Jennifer


My parents are elderly and Mortgage free I still live at home. Recently my mother had a stroke and finds it increasingly difficult to get upstairs we are hoping to put an extension on for a downstairs bedroom/bathroom but they are too old to be accepted for a remortgage can the mortgage be transferred to me so that we can continue with the extension I will be the one responsible for the repayments are there any legalities that I need to be aware of and is this feasible Many thanks in anticipation.

Jennifer

If you wish to have the mortgage transferred in to your sole name you will need to ask your parents' bank for permission.  They will want to check your credit history and income to make sure that you can afford to takeover the debt and are a suitable person to lend to.  If they are willing to give their consent then you will need to instruct a firm of solicitors to get the title amended at the land registry too.  You can not obtain a mortgage on a property you do not own.

I have asked our in house solicitors Rollingsons, to contact you with regards to the legal process and they will be in contact with you early next week.

The alternative to transferring your parents existing mortgage is for you to take a home purchase mortgage with another lender and you may find that this gives you better terms with a choice of either a Fixed or Variable rate.  This will depend on the terms of the mortgage your parents are currently on and whether or not there is an early repayment charge payable should they redeem the mortgage early.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right solution for your situation.

Peter

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.