Call us on 0344 346 3672
or arrange a callback

We'd like to add our daughter to the mortgage, how do we do it?

Posted on 11 January 2013 by Howard


My daughter (26) would like to get into the housing market and would dearly love to eventually have our family home (4 bedroomed detached).I will probably retire within 1 - 5 years. How do we go about her obtaining a mortgage for 50% of the property approx £125,000 so that she owns half and also are we allowed to do this etc. Thank you in anticipation.

Howard,

You are allowed to do this, and it is known as a 'Transfer of Equity', where you are adding your daughter to the mortgage and deeds, and staying on yourselves. You can either approach your existing lender for permission or can look to remortgage to a new lender. The lender will look at the overall affordability of the loan and will take into consideration the level of income your daughter earns, as well as your proposed retirement date.

As part of the transfer you would need to take legal advice as to whether you should get the ownership of property as 'tenants in common' with a defined split between you and your daughter of 50%.

If you would like to discuss your enquiry in more detail, then please let me know and I'll arrange for you to speak to one of our consultants.

Regards,

Simon

simon.collins@johncharcol.co.uk

More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

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.


Legal

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.

John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.