Posted on 31 May 2011 by Gwoda
I am an income generating parent with a daughter in university. Is it possible for me to purchase a property with the title registered under her name, but the mortgage under my name? Thanks.
The short answer to your question would be no, the mortgage has to include anyone named as the registered title holder. This does, however, mean that you could apply for a mortgage in your joint names or in your daughter's sole name with you as guarantor for the mortgage.
Whilst both scenarios mean that the amount you can borrow will be based on your income and that you will both be responsible for making sure that the payments are made as they fall due there is a difference when it comes to disposing of the property. As guarantor you will have no claim to the proceeds whereas as joint owner you may be entitled to a share and there may be a Capital Gains Tax liability if you haven't lived in the property. You should take legal advice on the best way to proceed and I have referred your enquiry to our in house legal team at Rollingsons Solicitors.
Once you have decided on the best way to proceed we will be able to help you and 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 most suitable mortgage for your situation.
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.