If I get a mortgage with someone is it necessary for them to go on the deeds for the property?

Question

note-the other person does not want to be on the deeds but is merely helping out with the mortgage

Answer 1

They would be a mug if they didn't.
If not they are just a lodger!

Answer 2

Assuming you're in England or Wales...

There are two issues here. The ownership of the property and the liability for the debt.

All owners have to join in a mortgage, but not all parties to a mortgage need to be owners.

So no, your friend does not have to "go on the deeds" (in practice go on the register as a proprietor at Land Registry) but they would be liable with you to pay the debt. They would have to sign the mortgage deed with you in order to become jointly liable.

You have to ask - what's in it for them?

They may acquire an equitable interest in the property, so make sure you get proper legal advice if that is not your intention.

Answer 3

If the mortgage is in joint names, then you need both names on the deeds. If you want only your name on the deeds, then the other person must make the financial commitment to you separately, either through Direct Debit of Standing Order. The problem is, you will need to earn enough to cover the whole mortgage, as the bank will not lend you money on the basis that your friend is helping you, as that help is not a legal commitment.

Answer 4

They will if the mortgage is taken out in both of your names, as the loan will have to be registered as a charge on both your names with the Land Registry. You will both be liable.

If they are merely helping you fund the purchase price (giving you a lump sum payment) of the house they do not necessarily have to be shown on the Title Deed to the property. It all depends on how they are providing the funds. If they are just giving you money they can do that and you pay this on to the solicitor, but personally I would want a charge registered on the property stating that you had borrowed the money and that on a future sale you would have to pay them back.

I hope this helps, but it all depends on your circumstances really.

Answer 5

No. A Bank can give a mortgage but does not become an owner and is therefore not named on the deeds.
Same for any private arrangement. The loan is of money and unless the naming on the deeds is a condition of the loan then still no. If a friend or other makes this a condition then walk away from him.

Answer 6

No they don't have to be on the deed, they are simply co-signer. But, if the lender wants them on the deed, well then if you want the loan with the lender you will have to comply. If the co-signer is not on the deed, it means they are ultimately responsible for the loan if you don't make payments, however they don't have any interest in the property, unless it is a spouse and you live in certain states where the spouse automatically gets an interest whether they are in title or not. It's called Homestead.

Answer 7

If they're on the mortgage, they'll be on the deed.

Although they could subsequently quitclaim their rights, they'd be absolute fools to do so; they'd still be bound by the mortgage but would have no rights to the property. Only an idiot would do that to themselves.

Answer 8

If this person's credit is being used to help get the mortgage, I believe his/her name would be on the deed. If this person is just going to live with you and help with the rent for a while, I believe but you will need to check with your realtor, that a lease showing that they will be renting from you might be suffient.

Answer 9

No as long as the person lets your attorney know they opt not to have it on the deed the attorney can handle before the closing..

Answer 10

Yes both of you would be on the deed.

Answer 11

Unfortunately, is both party responsibility, so yes the name will be on every single paper relate to that property.