Taking over somebody elses mortgage

T

The Teacher

Guest
I have heard that it is possible to take over someone's mortgage or have it changed into your name (and obviously have it increased to match the increased value of the property) rather than getting a brand new one, especially if you know the people off whom you are buying the house.
Has anyone heard anything about this or was someone pulling my leg ???
 
Never heard of it myself but what would one have to gain by doing that anyway even if it was/is possible?
 
never heard of it being done before, a mortgage has two principle elements to it,
property and mortgage holder, who must be the registered owner of the property, when a property is sold any mortgage secured on said property must be paid off from the proceeds of the sale.
The advantage of being able to do is if the mortgage is say 10 years into a 20 year term then the current repayments are reducing the capital by a higher amount than on a new mortgage which has little or no capital reduction in the first few years. Cant see a mortgage lender agreeing to it, as you will presumably be a new mortgage customer to them and should not benefit from interest already paid by previous mortgage holder.
 
I had heard that it was a legal way of avoiding paying stamp duty if the value of the house was over the cut-off and if you knew the people from whom you were buying the house ??
 
I would very much doubt it. Stamp duty is payable on the conveyance of the property not on the mortgage. There is a tiny stamp duty on the mortgage itself if it is over a certain figure. You might save this, but it would hardly be worth it.

Brendan
 
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