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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7620
Experience:  UK solicitor holding an England and Wales practising Certificate.
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, my friend and I have a joint mortgage on a property that

Customer Question

Hi, my friend and I have a joint mortgage on a property that he was living in. He has moved out (actually now living with my sister :-) ) and we now have tenants in via a letting agent.
On Land Registry I own 90 % and he owns 10% (Tenants in Common), I know what forms to complete for Land Registry having spoken to them however does it matter about the mortgage and would I need to change anything with the Halifax or do they not need to be informed?
Submitted: 2 years ago.
Category: Property Law
Expert:  Thomas replied 2 years ago.
Hi,
Thanks for your question.
Just to clarify; are you asking how to transfer the property in to your sole name?
Is there a balance outstanding on the mortgage?
Kind regards
Tom
Customer: replied 2 years ago.

Hi Tom, yes we would want to transfer ownership to just myself, I would pay him 10% of current value (House Value approx £117,000)

So Land Registry would show me as Sole owner.

Joint Mortgage (repayment) to remain in place and paid each month from our joint account, current balance of £35,954.08

Regards

Steve

Expert:  Thomas replied 2 years ago.
Hi Steve,
Drafting your answer now. 5 mins please.
Tom
Expert:  Thomas replied 2 years ago.
Hi
Thank you for your question and patience, I’m Tom and I’ll try to help you.
The problem is that your lender has a first legal charge over the property. This prevents changes in ownership without their consent. This means that you would not be able to change the title without the lender agreeing. The application would be rejected by the land registry if you applied without this.
Therefore, you will have to approach the lender to see if they are willing to let your friend come off the mortgage. This will most likely mean that they will have to issue a mortgage offer in your sole name. If you are able to do this then you can proceed, but the lender will require you to instruct a solicitor to ensure that their charge remains unaffected unfortunately.
If the lender is unwilling to agree then the only alternative is for you and your friend to execute a further declaration of trust stating that subject to the payment of the 10% by you to your friend it is declared that although you are both the owners of the property you have 100% of the equity and he has 0%.
It’s not ideal, because your friend would still be exposed to liability and he could probably apply for an order for sale successfully if he wished but it would be only option if the lender was not willing to agree to a transfer in your sole name.
My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.
Kind regards,
Tom
Thomas and other Property Law Specialists are ready to help you
Customer: replied 2 years ago.

Thanks & Regards

Steve

Expert:  Thomas replied 2 years ago.
No problem.
Good luck.