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.


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.




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