Joint Buy to let mortgage with 2nd applicant over 75

by Readers Question

9:27 AM, 22nd September 2014
About 4 years ago

Joint Buy to let mortgage with 2nd applicant over 75

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Joint Buy to let mortgage with 2nd applicant over 75

My mother and I own a house which is mortgage free which we let out. Joint Buy to let mortgage with 2nd applicant over 75

We’d now like to take some re-mortgage with a buy to let mortgage. I thought this would be relatively simple, but how wrong could I be.

I’m 44 employed with my own property and my mother is retired and 75.

I would be the main applicant, but I can’t find a buy to let mortgage that will accept my mother based on her age.

Has anyone got any ideas?

Thanks

Pat Thompson



Comments

Mark Alexander

9:32 AM, 22nd September 2014
About 4 years ago

Hi Pat

Mark Edwards recently produced a superb case study here which may well help you to solve your problem.

Please see >>> http://www.property118.com/case-study-first-time-buyer-first-time-landlord/65595/
.

Howard Reuben CeMap CeRER

12:46 PM, 22nd September 2014
About 4 years ago

"I thought this would be relatively simple, but how wrong could I be."

Hi Pat

The BTL market is an everchanging environment and lenders appetite and criteria changes all the time, and so this is why we (as Brokers) always recommend that a borrower does NOT go direct to any one bank, but instead that enquiries are put to professional and experienced Advisers who know where you can secure the funding you require.

And, yes, I have just made a call and indeed we can help you and your mother capital raise on your BTL property, even though she is currently 75 and retired.

The lender has no age restriction on application, although the mortgage must be paid off at age 85, so we are still talking a 10 year strategy here.

Key facts;

Up to 85% LTV
Loans up to £1m
Professional landlords welcome
Affordability based on rental cover only
These products are available on repayment or interest-only terms.

Some products with no early redemption penalties, and these are all straightforward BTL deals from one of the UK's most innovative lenders.

So, back to your point "I thought this would be relatively simple....." it can be! 🙂

Howard

alyson bartaby

11:10 AM, 23rd September 2014
About 4 years ago

Reply to the comment left by "Howard Reuben" at "22/09/2014 - 12:46":

Dear Ms Thompson,

You did not mention in your article the reasons for requiring your mother to remain on the title deeds but I am guessing there would be capital gains tax implications of transferring her equity in the property to you, in which case she would need to be on the mortgage deed.

It sounds like HD Consultants may have a possible mortgage solution, but there are then the legal aspects of co-ownership of investment properties.

At Share a Mortgage we provide all the legal advice and protections you would require in the form of our Shared Ownership Protection pack.

The Shared Ownership Pack includes the legal documentation to protect the individual share of the shared asset while also covering the ‘what if....?’ scenarios with legally binding protections. These protections would include inventories, dispute resolution procedures and exit procedures.

Please do give us a call if you would like us to run through the Shared Ownership Protection Pack in more detail.

Kind regards,

Alyson Bartaby
**EDITED - Company name removed**
**EDITED - Telephone number removed**

EDITORS COMMENTS

Promotions of this nature are not allowed, please see >>> http://www.property118.com/advertising/65073/

Pat The Landlord

0:11 AM, 24th September 2014
About 4 years ago

Thanks Mark and Howard for your feedback.

Another option has been raised too. It would mean my mother signing over her half of the property to me.

Do you know what implications this would have on either of us from a tax perspective in terms of CGT or inheritance tax?

Pat

Howard Reuben CeMap CeRER

9:51 AM, 24th September 2014
About 4 years ago

Hi Oat

The issue of CGT or IHT is indeed a topic best answered by qualified and insured accountants / tax advisers.

As a mortgage broker, my remit is to advise on mortgage products (and life cover and estate planning via Wills and Trusts) only.

So, with regards to mortgage planning, you probably do have a choice how to proceed and if you do keep things 'as is' but just simply want to implement a new BTL arrangement, then as I have mentioned, this is possible.

Howard

Mark Alexander

10:52 AM, 24th September 2014
About 4 years ago

Reply to the comment left by "Pat The Landlord" at "24/09/2014 - 00:11":

Hi Pat

Transfer of equity from your mother to you is bound to create both CGT and IHT implications if the property has increased in value. As Howard says, seek advice from a specialist accountant. Here's a link to the member profile of mine >>> http://www.property118.com/member/?id=452
.


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