Sole owner/joint mortgage

[Billyjaan]

Hi is it possible to be sole owner of a property but have a joint mortgage over it with a friend who has no share in the ownership?

I know there are parent/child mortgages which allow this, but what if the joint mortgage is with a friend (ie no family or spouse relationship)?

[acorn]

Parent/child mortgages? Never heard of that one! But i would have thought that in order to have a joint mortgage both names need to be on the deed at land registry. Sole owner sounds like you would be the only person with a mortgage.

Anyone else??

[dzug]

What security has the friend to offer the mortgage company? None. Therefore he can't have a mortgage - it's a matter of definition.

There may be other ways of achieving the sme end (though I'm not sure what that would be) but not a mortgage.

The friend would have a claim to a share in the property regardless of the registered ownership anyway.

[WoWo]

"What security has the friend to offer the mortgage company? None. "

I don't think that would be a problem, the security would be the house it's self as the bank wouldn't lend more than the house was valued at.

But they would want to be sure that the person was commited to paying the mortgage and with no share in the house they may well reject such an application.

[dzug]

I am intrigued to know how a lender can lend money to someone using as security a property which he has no ownership of. Could I for example take out a mortgage on my (hated) neighbour's house, default and get him repossessed and evicted? I think not.

If some sort of loan on those lines is possible, it is not a mortgage. Part of it will be an unsecured loan.

[WoWo]

The security is the house.... It's not really relevant who's the house is because the loan is secured against it not the person.

[themas]

This is probably too simplistic, but a mortgage is a loan to buy a house. What is the point of someone who is not buying the house getting the mortgage?

[WoWo]

Basically so that the person who is buying it can afford a bigger mortgage that they could otherwise.

[dzug]

So what's in it for the second person? It sounds like a total no-win for them.

[Billyjaan]

Thanks all for your comments.

Parent/child mortgage - Idea is that if child can't afford to buy alone, parents can take joint mortgage with child, but title can be in child's sole name. Bank of Ireland does this, & I think there are others too.

There was also a case when a man in process of divorce bought a new house with his girlfriend, in her sole name. Girlfriend died in car crash...and he was left with no right to the property.He contributed to the mortgage, but I don't know if just his or both names were on the mortgage.

So, I think it can be done...You CAN be party to a mortgage without being on the title deeds.

As for WHY anyone would agree to this.... In my case, I need to borrow a higher amount than my income would otherwise allow, and my best friend has suggested he support me with a joint mortgage. Yes, some would say he is mad. I say he is an absolute gem. I have helped him before, now he wants to help me through a tough patch. In reality, if we get the mortgage, I will make all the monthly payments.

I am still investigating this...

[mshane]

can i have sole ownership with a joint mortgage?

[mshane]

can i have sole ownership with a joint mortgage?