Questions and Info relating to Property Issues inc, Charging Orders and Repossession

Moderators: TalbotWoods, JaneClack

By regrets
#215018 Guys, I currently have a 40% share in a lovely house, I have no mortgage as i couldn't get one due to bad credit history, my parents loaned me the money, so i own my 40% outright.
My parents are now emigrating and would like their money back, I now have no debt, altho i do have a bad history until January. My boyfriend has perfect credit history, and we are living together. We each earn 25k.
My question is, I don't think i would get a mortgage until after Jan due to my credit and can't do it as i already own the property and as it's shared ownership the banks wouldn't do it anyway, however i am looking to sell the property to my partner, however we will still pay for it jointly, I know the risks, but I am willing to do it.
My question is, if my partner buys the property and it's in his name, would we still be able to have the deeds in both our names or just the name of the person with the mortgage?
Also, do they still do it where they have a primary on the mortgage and a secondary? Would i be considered given that he has such good history and we earn 50k minimum between us, please advise, it's all so confusing :-)
By mercgirl
#215021 Hi. At present shared ownership mortgages are v hard to come by even for people with excellent credit. The mortgage company like having people on the mortgage who they can look to if the other party doesnt pay, so your adverse credit probably would affect it.
Even if you sell your partner your share, and he gets the mortgage alone, due to falling prices, shared ownership isnt a good bet for the companies right now. Also it causes them all sorts of problems in the event of repossesion. You could look at sub prime lenders, who are not so fussy but they charge upwards of 11% and I wouldnt advise it
By mercgirl
#215039 The way it normally works is that the person with the mortgage gets a land registry entry of "proprietor" title absolute, and then it will state Charges register, for example, the bank of noddy dated 1st july 2009 to secure the moneys advanced(mortgage). This is so the person with the mortgage cant just sell it without the bank knowing.
To be honest I dont think you would be able to go on the land registry as you would be seen as another interested party and the mortgage company wouldnt like it.
I would suggest that if you have any doubts, and you were my client, I would advise you to both go to a solicitor and have a formal agreement drawn up to show your stake of the property if things dont go to plan. You would find it hard to enforce as the mortgage company would always come first but at least you,d have something
By Crunchynut
#215107 I've had this in the past - it's easier if the one of you with the clean credit rating takes out the lone in their sole name, and you have a Deed of Trust drawn up by your ( independent ) solicitor detailing how the proceeds will be transferred when disposed of.

As mercgirl says, the mortgage company will always get priority but the DoT should also detail how you account for shortfall as well as apportionment of profits.
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By JaneClack
#215109 It can happen though.

I am on the deeds together with my deceased husband whose name the mortgage was in. I was not on the mortgage as we wanted to take advantage of MIRAS on 2 properties. How are the mighty fallen.

My husband was then made redundant and for the next 10 years I paid the mortgage .... and still have not completed probate as he died intestate and am still paying the mortgage....