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Removing name off mortgage

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  • 06-06-2008 11:56am
    #1
    sunflowers
    Closed Accounts Posts: 8 ✭


    Parent and adult son on joint mortgage.Both wishing to remove son off the mortgage no money to be exchanged.Was previously advised by solicitor that parent would have to buy son out and pay stamp duty on purchase plus solicitor fees ? This is no way affordable and as we are both agreeable to remove sons name is there another cheap way to do this?


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    Removing the sons name from the mortgage is a matter for the financial institution that the mortgage is held with. Presumably the son's name is also on the title deeds of the property (as you are unable to get a mortgage against an asset for which you do not hold a beneficial interest).

    While you may remove the son's name from the mortgage, if the financial institution is satisfied that verifiable income is sufficient to service the mortgage and is satisfied to do this (there will be a number of other factors, including the age of the person), it is not possible to simply remove someone's name from title deeds.

    The advice from the solicitor is accurate- if its the title deeds you have in mind, not the mortgage......

    Note: the bank/institution may not be satisfied to offer a mortgage on the property at all, if another party has a beneficial interest in it (i.e. if you do not remove the son from the title deeds).

    You can transfer a "gift" between parent and child or vice-versa, without attracting a taxable gain up to a certain level. If the property being "gifted" is the principle private residence of the person acquiring the gift, the rules are a lot more generous.


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