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Hi - I am sorry you have not had an earlier answer on this. You can certainly do what you propose. You can enter into a deed of purchase form his that transfers the whole of the equity to you ad would be binding between you. You would need also to make sure there is a clear record that you no longer hold the property as "joint tenants" but as tenants in common and you have 100% beneficial ownership - this is important because if anything happened too you and the property remained in joint names your business partner might be able to name a claim to the property on your death. It is not difficult to document all of this and a solicitor can help you. The main issue is the mortgage. First your mortgage document will almost certainly require you to notify the lender off any change in beneficial ownership but more significantly they are unlikely to release your friend from his liability under the mortgage so he will still remain liable even if you buy him out. This is obviously a problem for him not for you but he may be unwilling to agree but if there is reasonable equity in the property there should be no risk of the mortgage not being repaid even if there is default and the lender forecloses. You can of course ask the lender to transfer the existing mortgage to your sole name - if the property is let and the income adequate to cover the mortgage interest they may agree. Most buy to let lenders rate the credit risk on the basis of the rental property being a standalone business and do not look to the credit of the borrower - it is not the same as an owner occupier mortgage where the lender depends on the owner to pay.
Hi It is possible to have a deed that is binding between you and your business partner without having to register it - but it is not ideal because the land registry is a clear public record. You will be in breach of the terms of the mortgage if it is an owner occupier one by not tellling the lender that it is now buy to let. No one is legally obliged to inform the lender except you but of course anything registered with the Land Registry will be notified to them.
you can create a deed without filing anything but it is not the ideal solution. you would need to rely on the deed if there is a dispute whereas if everything is transferred to your name and registered there is no dispute possible.
Is there anything further I can do to assist or clarify?