Joint Mortgage - Buying other stakeholder out

[jonamv8]

Hi,

Own a property with someone who wants to sell their share. Currently negotiating the amount.

Once we agree the figure what's the process?

Cheers

[Sarnie]

The process is that you would need to apply for a mortgage in your name only to cover the current balance and the amount payable to the other party.

Within the process you will need to complete a TR1 form which is for the Transfer of Equity over to you in your sole name, thus removing any rights over the property for the other party.

As with any mortgage you will need to meet standard criteria such as income, credit score and also stay within the required LTV thresholds. E.g some lenders will limit the LTV where the purpose is to pay off an ex partner.

Hope that helps

[jonamv8]

Thanks Sarnie.

So a TR1 form is land registry?

No need for solicitors or any form of conveyancing?

Much appreciated for the advice

[Sarnie]

jonamv8 said:

Thanks Sarnie.

So a TR1 form is land registry?

No need for solicitors or any form of conveyancing?

Much appreciated for the advice

Ordinarily the TR1 would be part of the documentation supplied to you by the conveyancer, assuming you were re-mortgaging the property to release funds to pay off the other party.

Are you raising funds from your current lender, taking out a new mortgage entirely or paying them off via your own funds?

[Jobbo]

jonamv8 said:

Thanks Sarnie.

So a TR1 form is land registry?

No need for solicitors or any form of conveyancing?

Much appreciated for the advice

You're likely to need a solicitor to act for the bank whatever happens. Even if it's the same bank who provide the existing mortgage, from their point of view it'll be equivalent to taking a new mortgage.