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Selling our home with a second charge on it
Hello
I am wondering if we can take our portable second charge with us when we sell the property? We will be paying off the mortgage but due to prices dropping our second charge needs to go with us to our next property. We will be moving to my parents house, where we are looking at being named on the mortgage and the deeds, and paying the mortgage jointly with them there...will we be able to secure our second charge on that property in this way??
thankyou for your help, answers greatly appreciated.
I am wondering if we can take our portable second charge with us when we sell the property? We will be paying off the mortgage but due to prices dropping our second charge needs to go with us to our next property. We will be moving to my parents house, where we are looking at being named on the mortgage and the deeds, and paying the mortgage jointly with them there...will we be able to secure our second charge on that property in this way??
thankyou for your help, answers greatly appreciated.
Answers
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It may be possible, speak to the 2nd chargeholder about whether they would be willing to consider transferring it though I'm sure they want it set that it is only transferred if you go onto your parents' deeds on the same day.
It may be more persuasive if you could pay some of it off. They may want to know what you are selling it for (make sure it is for full market value or you're not selling it cheaper than you could) and what proceeds would be left over once the main mortgage is paid off and what, if anything, you would be paying to go on your parents deeds to see if it's feasible you could pay it from the proceeds.
They may charge a fee for transferring it and may instruct their own solicitors to make sure it's transferred properly for which they are likely to pass on the cost to you.
If I were them, I'd want to check the equity situation on the parents house ie their current mortgage debt (or anticipated if there a new mortgage is being put on in all your names) and make sure there was an appropriate restriction on the property to make sure that the property cannot be sold (or parties taken off the register) or remortgaged without their consent or them being paid off.
If you are going on your parents' deeds then their mortgage lender would have to consent to this - though if you are going on the mortgage as well then they may do a straight remortgage in all your names but make sure you are aware of any changes in rates and such if this happens, get a full illustration incase your parents lose don't end up on quite as good a deal.
You will also need to go through all the credit checks to go on their mortgage and there are likely to be fees involved though it may be possible to add these to the mortgage.
Their consent may also be needed to the second charge going on. They may charge a fee for this as well.
Hope this helps!
It may be more persuasive if you could pay some of it off. They may want to know what you are selling it for (make sure it is for full market value or you're not selling it cheaper than you could) and what proceeds would be left over once the main mortgage is paid off and what, if anything, you would be paying to go on your parents deeds to see if it's feasible you could pay it from the proceeds.
They may charge a fee for transferring it and may instruct their own solicitors to make sure it's transferred properly for which they are likely to pass on the cost to you.
If I were them, I'd want to check the equity situation on the parents house ie their current mortgage debt (or anticipated if there a new mortgage is being put on in all your names) and make sure there was an appropriate restriction on the property to make sure that the property cannot be sold (or parties taken off the register) or remortgaged without their consent or them being paid off.
If you are going on your parents' deeds then their mortgage lender would have to consent to this - though if you are going on the mortgage as well then they may do a straight remortgage in all your names but make sure you are aware of any changes in rates and such if this happens, get a full illustration incase your parents lose don't end up on quite as good a deal.
You will also need to go through all the credit checks to go on their mortgage and there are likely to be fees involved though it may be possible to add these to the mortgage.
Their consent may also be needed to the second charge going on. They may charge a fee for this as well.
Hope this helps!
To Jenna 1978
Many thanks for the detailed information, very helpful.
We would be able to pay off some of the charge and transfer the rest (parents are in agreement), also they have a tiny mortgage on the property and has a huge equity. Our charge and their mortgage wouldnt total half the propertys value, so we may be ok there. I am hopeful that a solicitor would manage this correctly for us and if all parties ie:Mortgage etc are in agreement following checks and applications that we would be able to be added to the deeds on the day of sale?/transfer of charge?
I wonder how much they charge to add names to a property deed?
We would ideally like to remortgage with all our manes on the mortgage. We would not be selling the parents house at any time, not for the foreseeable future at least, where do I stand with inheritnce tax though? if I am named on the deeds will I have to pay IHT?
THankyou so much
Many thanks for the detailed information, very helpful.
We would be able to pay off some of the charge and transfer the rest (parents are in agreement), also they have a tiny mortgage on the property and has a huge equity. Our charge and their mortgage wouldnt total half the propertys value, so we may be ok there. I am hopeful that a solicitor would manage this correctly for us and if all parties ie:Mortgage etc are in agreement following checks and applications that we would be able to be added to the deeds on the day of sale?/transfer of charge?
I wonder how much they charge to add names to a property deed?
We would ideally like to remortgage with all our manes on the mortgage. We would not be selling the parents house at any time, not for the foreseeable future at least, where do I stand with inheritnce tax though? if I am named on the deeds will I have to pay IHT?
THankyou so much
Can't help you with the IHT query (may be worth posting a separate question about this as there are some people on here who really know their stuff).
Fees wise for going on your parents' deeds, I would see it as a transfer of equity and my usual charge for this would be about �150.00 plus VAT and disbs (LR fee of �40, copy of the title for �6, searches of about �11, search indemnity for about �25, TT fees etc...). They are likely to charge more for sorting out the remortgage and second charge as well so I'd go for about �300.00 - �400.00 plus VAT and disbs).
You'd also have the costs for the sale and any fees charged by the lenders and 2nd chargeholder.
If your solicitor is acting on both the sale and purchase then you may get a further discount - with the state of the market at the moment then I'd definitely ask as most conveyancers are really lacking in work.
It would be beneficial for one solicitor so do everything for you to manage it all. You may negotiate free legals on the remortgage but that may be problematic with being added to the title and the 2nd charge so probably easier to use your solicitor to do it all even though it may cost a bit more.
Fees wise for going on your parents' deeds, I would see it as a transfer of equity and my usual charge for this would be about �150.00 plus VAT and disbs (LR fee of �40, copy of the title for �6, searches of about �11, search indemnity for about �25, TT fees etc...). They are likely to charge more for sorting out the remortgage and second charge as well so I'd go for about �300.00 - �400.00 plus VAT and disbs).
You'd also have the costs for the sale and any fees charged by the lenders and 2nd chargeholder.
If your solicitor is acting on both the sale and purchase then you may get a further discount - with the state of the market at the moment then I'd definitely ask as most conveyancers are really lacking in work.
It would be beneficial for one solicitor so do everything for you to manage it all. You may negotiate free legals on the remortgage but that may be problematic with being added to the title and the 2nd charge so probably easier to use your solicitor to do it all even though it may cost a bit more.
To Jenna 1978
Many thanks once again
Both my parents are of retirement age and wish for us to live with them and pay the mortgage, as the mortgage will get too much for them otherwise. the house has land and it is more suitable for our family there than where we are at the moment hence the sale.
But we are hopeful we will get a buyer here, and that we should be able to sort out the arrangements for the transfer of charge and adding to deeds/mortgage on parents house without too much bother. SOunds like it is all possible?! but it will cost, but so does everything!! :-)
kind regards
Many thanks once again
Both my parents are of retirement age and wish for us to live with them and pay the mortgage, as the mortgage will get too much for them otherwise. the house has land and it is more suitable for our family there than where we are at the moment hence the sale.
But we are hopeful we will get a buyer here, and that we should be able to sort out the arrangements for the transfer of charge and adding to deeds/mortgage on parents house without too much bother. SOunds like it is all possible?! but it will cost, but so does everything!! :-)
kind regards
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