2 on Mortgage 1 on Title

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Pexus1976

Registered User
Messages
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What is the consequenses of 2 on mortgage 1 on title?

Who legally owns the property?

Do both parties pay the mortgage?

In what circumstances would this occur?

What are the benefits and draw backs?

Do most lenders provide this option?

All replies appreciated!

Thanks
 
Q1 - Don't understand

Q2 - Legal owner may or may not be the registered owner. It might be held in trust by the registered owner for someone else. To nail down thel legal ownership issue, you would need legal advice as to whether the registered owner should hold it in trust for both the registered owner and A N Other.

Q3 - if they want to and if the bank more importabtly want to.

Q4 - bank might not give mortgage on the one salary. however, if they are taking second income into account, they will need some more documentation signed wherby the person not named, will not interfere with any repossession in the event of repossession being necessary.

Q5 - You need to work these out for yourself. Why do you not want to be named; Why do you not want others to know that you are the owner?

Q6 - lender will want to know why this arrangement is being propsed and will need to be satisfied with it.
 
Disadvantage:

It will affect the ability of Person no. 2 to get their own mortgage.
 

Do you mean 1 person on the Deeds with 2 names on mortgage?
Legally, person on deeds owns house but you have to sign quite a few forms to say that you are aware of this and that if you are on mortgage and not on deeds, you are only responsible for debt.

It really depends on the lender I think as to whether they will allow it or not. Depending on circumstances of application.
There is still only 1 mortgage account, so it would really depend whether both people had agreed on paying the mortgae or not I suppose...

Hope this helps
 
What is the consequenses of 2 on mortgage 1 on title?

Who legally owns the property?
person on title

Do both parties pay the mortgage?
both parties are resonsible for paying mortgage

In what circumstances would this occur?
If an unmarried couple want to buy a house together
while one or other already owns a house.keep
one person on each deed then no capital gains tax
liable, to qualify for first time buyer status, rent a room scheme

What are the benefits and draw backs?
as above
tax evasion

Do most lenders provide this option?
yes

All replies appreciated!

Thanks
 
Hi
First of all the person on Deed will be the Legal Owner of the property. The other person (on Mortgage not on Title) will have a beneficial interest in the property if he or she is contributing to the Mortgage, paying for furniture etc. The Banks have no problem doing this so long as the non-owning mortgagor signs a Deed of Confirmation transferring all his/her beneficial ownership on the property to the bank so that he/she will assert no claim over the property if it is repossessed. Capital Gains Tax exemption appies to your principal private residence. For unmarrieds, each person would need to reside in each of thier own respective properties for the duration of ownership for total exeption to apply.
 
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