Single to Joint Title deeds

[Luigi08]

I wish to transfer a property from single name to joint names. Property is worth about � 100,000 .
Can anyone tell me the financial implications if I do this in terms of both the cost and the implications if we then sell it later - will it need to be lawyers or can I just inform the mortgage lender? What is the process? Do I need to change the deeds? Can we do that ourselves or need lawyer?
Thanks Luigi

[dzug]

You can't 'just inform the mortgage lender' - you need to get their agreement to do it. They may refuse, and they will insist on lawyers being involved. Ask them about costs.

As to financial implications, a lot depends on your relationship to the joint owner and whether you live in the property or not.

[Ethel]

You need to speak to your mortgage lender first - if they don't agree it won't happen. The other person's name will also have to go on the mortgage because it would be very difficult for the company to exercise its rights over a property that has acquired another owner.

If the other person has bad credit history your proposal may be refused.

Where is the property - England, Wales, Scotland? The rules are different depending where you live.

Is the land registered with the Land Registry? It probably is. The costs of adding a name to the Title Deeds is not great - phone your local office for information. The mortgage company will probably charge you for this and see to all the paperwork. It is in their interests to make sure both of you are on the Title.

Assuming it goes ahead, there will be no tax implications when you sell if it is the sole residence of both of you.

A new mortgage will probably have to be negotiated, and there is often an arrangement fee and so on.

[Luigi08]

Thanks for that - very helpful - it was in England all the above.
I meant to ask does that mean if the mortgage lender insists on a new mortgage that they will have to do that at the latest market value of the house not the original mortgage - that would seriously stop us doing that. Otherwise it all seems very straightforward - any experience of otherwise?

Yes it will be sole residence of both parties and both happy to be equally liable for the mortgage.
Luigi

[fredpuli47]

There's two kinds of joint ownership of real estate, by two people.In one , one joint owner automatically becomes sole owner on the death of the other ('joint tenancy') In the other the parties are both owners of a share each in the property , each share being whatever they agree ("tenancy in common"). The difference is important.

http://www.swarb.co.uk/lawb/cvrJointTenancy.sh tml

gives an explanation.

In the end you'll have to do whatever the mortgage lender wants, if they allow it at all, as already explained above.

[Ethel]

The new mortgage will be the amount you need to pay off the existing mortgage.

Rises in house values has nothing to do with it, except give you 'equity' in the house which makes it easier to borrow - the lender is a lot more likely to recover all his money and costs if he needs to repossess. That assumes the house is worth a lot more than the borrowing.

If you bought the house recently and have seen a big drop in value, that could make it harder to remortgage, but not impossible.

[jwatts]

Hi there Luigi,

How did you get on with with? I am in the process of wanting to do the same thing with my partner and I have no idea how to go about it?

Any advice would be greatly appreciated,
Many Thanks