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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34263
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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Friend Is going to buy me out of house which we originally

Resolved Question:

Friend Is going to buy me out of house which we originally bought to live in .It is a mutual agreement and we have shared ownership and agreed an amount to be paid. He has savings to be able to buy me out in full. What do we need to do now? He wants to rent it out . Do we have to tell mortgage company if we transfer the deeds to his name ? as I'm not sure he could secure mortgage on his own. The current mortgage has a change of use clause and therefore could be rented out on the current mortgage. So if he buys me out is there a basic agreement I can sign to defer any interest I have in the property ? Thanks
Submitted: 1 year ago.
Category: Property Law
Expert:  Clare replied 1 year ago.
HiThank you for your questionMy name is ***** ***** shall do my best to help you but I need some further information first.Are you willing to remain on the mortgage even though it may mean that you cannot get another one?
Customer: replied 1 year ago.
yes
Customer: replied 1 year ago.
no plans to be getting another mortgage in the next 5/6 years , property would probably be sold by then anyway
Expert:  Clare replied 1 year ago.
Hi
The deeds of the property cannot be changed unless the mortgage company also release you from the mortgage.
However you and your friend can sign a Declaration of Trust that states that whilst the property remains in joint names only your friend will receive the proceeds of sale
You shoudl make sure that there is wording which allows you to insist on the sale in the event that you do need a new mortgage
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 1 year ago.
ok that sounds fine ,perhaps i can also mention in the trust that i will be exempt from any future costs ? Am i correct in saying that as i will no longer have any monetary interest in the property the tax returns on letting the property will be my friend's responsibility ?
thanks
Expert:  Clare replied 1 year ago.
Hi
That would be a standard part of a Declaration of Trust - and yes the tax returns would be his responsibility
Clare
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