joint ownership/ single mortgage

[Hodgeheg]

I can't understand why building societies won't let me have somebody on the title deeds of the property but not on the mortgage. Can anyone enlighten me?

[Ethel]

You are saying that you cannot have a person on the title deeds because the mortgage company won't allow it as they are not on the mortgage?

This is quite correct - currently one person owns the property - the same person who has the mortgage.

If another person was on the title deeds, he would be part owner and have rights. He could use the property as security against loans, and have an interest that conflicts with the mortgage company's interest.

If this person was on the deeds and went bankrupt owing a lot of money, the house would have to be sold to pay off the debts.

The mortgage company doesn't want this to happen because they have a financial interest in the property.

Also, if you default on the mortgage it can be repossessed - much harder to repossess with a second owner occupying the house who has no ties to the mortgage company.

[earsugar]

why would you want this anyway?

[Hodgeheg]

Thanks Ethel.

earsugar: somebody has invested money in the property purchase so they should be on the title deeds, but they will not be paying anything further.

[earsugar]

they can take a charge on the property, behind the primary lender that will ensure there investment can be repaid at sale - if that is what you want.

There are other ways their interest can be recorded - see a solicitor.