Adding Family Members to Mortgages and Property Ownership

 

Nova Financial Ltd featured in Property Question Time on the Property Sky Channel 198

Our Managing Director Paul Mahoney on the Expert Panel:

Bryony Bilsen:”My wife and I want to add our son to the mortgage as a co-owner, so that when we die he automatically becomes the owner, having contributed to the mortgage payments. Can we add third party to our joint mortgage?”

Paul Mahoney: Yeah, just a couple of practical points to consider when it comes to adding other people to property ownership. It’s quite important to make sure that the timelines and the goals of each of the people are quite closely aligned. I’d say generally, with a son or a daughter for example, although they’re family, their timelines are very different to yours. Certain financial decisions for them might be different to yours as well. So making sure that that’s all aligned, or there’s at least an agreement and you know that that’s not going to fall out of bed.

Other things to consider is, something that I found people don’t realize is that by going onto a mortgage, you aren’t just liable for your portion of that mortgage. You’re jointly and severally liable, meaning you’re liable for the whole mortgage. For example, if that son or daughter may not be actually living there, and then they want to go and get their own home or their own buy-to-let, the lenders will look at them as being liable for the whole mortgage, so that could affect their ability to get mortgages elsewhere.

Bryony Bilsen: So it’s definitely very important to have family discussions, where you’re at now, where you will hope for things to be and what goals you might have for the future as a whole family so that everyone’s outcomes are considered?

Paul Mahoney: Yeah.

T: 0203 8000 600 W: Nova.Financial E: info@nova.financial

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