House Joint Tenancy


S

Shoplifter

Is it possible for me to get a mortgage under my name only and buy a
house yet when I get a house to have my Mother's name also on the
registration, perhaps as joint tenancy...ie my Mother has no mortgage.
The reason is that she is unemployed and do not want to apply for a
mortgage but she will give me some money for the deposit so wants a
share of the house.
 
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J

john boyle

Shoplifter said:
Is it possible for me to get a mortgage under my name only and buy a
house yet when I get a house to have my Mother's name also on the
registration, perhaps as joint tenancy...ie my Mother has no mortgage.
The reason is that she is unemployed and do not want to apply for a
mortgage but she will give me some money for the deposit so wants a
share of the house.
Some Banks will sometimes do this but dot expect normal interest rates.
I dot understand why she doesn't want to be a party to the mortgage, so
long as you are employed then her employment status doesn't matter, but
if she has a bad credit record then it would be a hindrance.

Why doesn't she lend you the money and take a second mortgage on the
house as security?
 
M

Michael Chare

Shoplifter said:
Is it possible for me to get a mortgage under my name only and buy a
house yet when I get a house to have my Mother's name also on the
registration, perhaps as joint tenancy...ie my Mother has no mortgage.
The reason is that she is unemployed and do not want to apply for a
mortgage but she will give me some money for the deposit so wants a
share of the house.

You mother might be asked to sign that the mortgage lender's interest in the
house came before hers. You might also want to consider the capital gains tax
implication - assuming that your mother owns and lives in another house. I
would have thought that it was perfectly possibly and might incur a small extra
initial charge. There is also joint tenancy and tenancy in common which you
need to consider - I forget what the difference is.

I suggest that you ask potential lenders what their attitude is.


Michael Chare
 
R

Ronald Raygun

Michael said:
There is also joint tenancy and tenancy in common which
you need to consider - I forget what the difference is.
The difference is that with the "in common" one the tenants own
arbitrary shares, whereas with the "joint" one, the tenants own
the whole thing as one share together. I may have them the wrong
way round, but basically that's the difference.

What it means is that an asset owned jointly cannot be disposed
of by will or otherwise without first severing the joint status.
But I think that's easily done by declaration which can, I think,
be unilateral, without consent of the other co-tenant(s).

If one of the joint tenants dies, his interest passes automatically
(by survivorship) to all the other tenants. That is to say they
are not inherited in the normal sense, although for IHT purposes
they count as though they were. It is not possible for joint
tenancies to be held in unequal shares, not can a joint tenancy
generally be created except by simultaneous acquisition of the
asset by all the joint tenants together, i.e. a JT is easily
converted into a TiC, but you can't readily go in the other
direction.
 
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G

GB

Shoplifter said:
Is it possible for me to get a mortgage under my name only and buy a
house yet when I get a house to have my Mother's name also on the
registration, perhaps as joint tenancy...ie my Mother has no mortgage.
The reason is that she is unemployed and do not want to apply for a
mortgage but she will give me some money for the deposit so wants a
share of the house.
Why not go ahead with just you as the registered owner/mortgagee? You can
then do a declaration of trust showing that you hold the equity in the
property (net of mortgage) say 80% for you and 20% for your mum. If she does
not trust you, she can register a caution at the Land Registry.
 

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