Could you assume a mortgage?

My friend is thinking about doing this with her brother, She lives in this house as a tenant at the minute and pay's the same amount as the mortgage. she reckons they can go to solictor's and have it signed into her name so the debt would be hers in theory. I would presume that she would have to get a mortgage herself in this situation but she says no? any idea's

You are correct. The lender would have to approve any transaction

If they do approve the transaction, the following will happen

They will grant her a new mortgage
She will buy the property from him.



Brendan

The bank owns the house. Any change with the mortgage would need prior agreement of the bank.

She would need to prove she can afford the mortgage on her own.

thanks for speedy replies

Yeah that is what i said to her, But they have been to solicitor (same solictor) and he reckons they can just do up a contract between them and the solicitor not say anything to the mortgage company, sounds very dodgy to me !!

flo2 said:

thanks for speedy replies

Yeah that is what i said to her, But they have been to solicitor (same solictor) and he reckons they can just do up a contract between them and the solicitor not say anything to the mortgage company, sounds very dodgy to me !!

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Not necessarily.

There may actually be a legal way around the issue. The legal and beneficial owners of something don't have to be the same person, and some kind of side-letter/side arrangment type thing could fit the bill.

I'd get independent legal advice on the proposal though (i.e. from a different solicitor).