Is it possible to sell a percentage say 20% of my property to my son to raise funds? The property is worth in excess of 350,000 and he would need to take out a mortgage to raise the funds. The situation has been caused by the ex leaving and landing me with a mortgage I can't afford. The ex has never paid into the house it was previously owned by myself free of any mortgage.
BASICALLY IT WOULD BE TO BUY THE EXISTING MORTGAGE OFF.
IT WOULD BE A PRO RATA SHARE IN THE PROPERTY AS i SAID THE PROPERTY IS WORTH APPROX 350,000 AND HE WOULD BE AFTER SAY 80,000 TO PAY OFF THE EXISTING MORTGAGE.
i SPOKE TO THE MORTGAGE ADVISOR AT THE BANK WHO SAID IT WAS ILLEGAL AND i WOULD HAVE TO VACATE THE PROPERTY, i TRIED TO GET AN EXPLANATION BUT ALL HE KEPT SAYING WAS IF i CONTINUED TO LIVE HERE THE MORTGAGE WOULD HAVE TO BE JOINT. THE TROUBLE WITH THAT IS i'M ALREADY 60 SO THE REPAYMENT TERM WOULD THEN BE QUITE SHORT. i JUST COULDN'T SEE WHY HE WAS UNABLE TO PURCHASE A PERCENTAGE FOR A REALISTIC FIGURE.
Thanks because Cheltenham and Gloucester the current mortgage provider have just said the same thing. If you sell him 20% then you have to move out of the property. What? I would still own 80% of it but not be allowed to live in it according to property law, how can that be so?
yeah I found that out on google, it's not law it's just a case if he defaults they want to be able to repossess and they'd struggle with that if I own 80% of the property and none of the debt. It would be wrong to transfer the property into his sole name for 70-80 grand cos then I'd be in trouble with both the Inland revenue and Land registry for fraud and tax evasion.
So even experts don't know the answer.
The mortgage lender can offer no assistance their answer to every possible suggestion is no. Maybe I'll just default and see if they listen then.
Ok so I transfer it into his name using the mortgage company solicitor as it's cheap. Then get ourselves another solicitor for the declaration of trust ? and that's legal? Because tbh I'm dealing with morons at the bank, the building society etc.