Costs? Joint mortgage to single mortgage

ainemolloy1

Hello all,

I've been on a joint mortgage for two years with my sister as it was the only way to get a mortgage at the time. But now I would like to put it in my name only, does anybody know the costs involved?

I would also like to switch my mortgage maybe as a possible second option,maybe interest only for a couple years as I'm going back to college soon. I'm paying 3% plus 1.5% tracker over 30 years with 225,000 outstanding on a 315k house. Anybody got any ideas?

Thanks a lot

Aine

Paraic

Hi
You'll have to re-mortgage for the amount to clear off your existing mortgage and to pay approx half the gains to your sister. It's a very common practice thesedays and your solicitor should be able to handle the legal side for a small cost.
The Cheapest mortgage rate at the moment for your situation would be
0.45% above ECB for 2 years and then it'll go to 1.0% above ECB.
Interest Only for a couple of years is available as well.
I'd be happy to help you!

Paraic@obrienfinlay.ie
Mortgage Broker

ircoha

ainemolloy1 wrote:

Hello all,

I've been on a joint mortgage for two years with my sister as it was the only way to get a mortgage at the time. But now I would like to put it in my name only, does anybody know the costs involved?

I would also like to switch my mortgage maybe as a possible second option,maybe interest only for a couple years as I'm going back to college soon. I'm paying 3% plus 1.5% tracker over 30 years with 225,000 outstanding on a 315k house. Anybody got any ideas?

Thanks a lot

Aine

Is it joint ownership also, if so the property will need to be "sold" by the 2 of u to u.

also do the 2 of u have an agreement about the joint mortgage/ownership.
If she wont sign u are in trouble.

why not wait till u finish college before u do this as interest only with no job may be a problem

bagpuss

Is your sister on the deeds? If she is then technically you would have to buy her out. There may be a stamp duty liability. There will definitely be solicitors fees whatever the situation. Look up the financial institutions web sites..I think BOS is currently offering to pay some, if not all the legal fees for switching.

Jenga

My friend was in a similar situation. I'm pretty sure there was stamp duty to be paid as the property was being bought and sold. You will also have solicitors fees relating to the property sale & repurchase. You should negotiate these fees down if you are proceeding with this. The work involved should be limited but that might not stop your solicitor trying to charge a lot.

In relation to the mortgage, you won't be able to switch if you say you're going back to college as the new lender will have an issue with your ability to repay the loan. If you do go ahead with this, many brokers will organise for your (mortgage) legal fees to be paid so this might help with your costs.

My friend used a company called Blue Sky Mortgages and said they were very good and he had no legal fees to pay and was also able to get interest only for 3 years.

Hope this is of some help.

ircoha

Jenga wrote:

My friend was in a similar situation. I'm pretty sure there was stamp duty to be paid as the property was being bought and sold. You will also have solicitors fees relating to the property sale & repurchase. You should negotiate these fees down if you are proceeding with this. The work involved should be limited but that might not stop your solicitor trying to charge a lot.

In relation to the mortgage, you won't be able to switch if you say you're going back to college as the new lender will have an issue with your ability to repay the loan. If you do go ahead with this, many brokers will organise for your (mortgage) legal fees to be paid so this might help with your costs.

My friend used a company called Blue Sky Mortgages and said they were very good and he had no legal fees to pay and was also able to get interest only for 3 years.

Hope this is of some help.

OP:
It would be nice to get some feedback on some of the questions posed here by the people who are taking the time to try help you:)



Jenga is right about the Stamp duty. The other problem here is that neither of you will now qualify for first time buyers relief and if either of you are thinking about trying to get a property through the shared ownership program, you are excluded by virtue of having claimed interest relief.
Lastly, there may be Capital Gains tax issues.

ainemolloy1

Thanks to everybody who responded to my queries!:)
I've been away from the computer for a while and apologise for leaving the thread hanging.

I don't see how stamp duty can be an issue as it was the banks insistence for issuing the loan, that there be a joint mortgage. My sister is not on the deeds and has no interest on the house, as agreed between ourselves. She has her own house. The house will not be bought and sold, but only a name dropped from the mortgage.

Also the house will be rented out over the duration of my time in college, but I know this brings up another host of problems, and will not cover the entire monthly expenditure involved with the house. I also have cash to pay for the repayments over an extended period in case of any problems.

I regard myself as low risk, but I can see how the institutions can see differently, especially with the college thing. I thought I'd throw it out there before going to the brokers.

Thanks everybody