i need advice on mortgages, can you get money if the land is owned by 3rd party!!!!?

Question

i have just got the go ahead for planning in Dublin, can anyone tell me this, the land is in my mothers name, and due to the fact (financial reasons) she cannot sign the land over to me,or sell it to me, am i going to find it hard to get a mortgage, theres no probs with her going garantuer on the loan, and the collateral is there ten fold on her property to the one i hope to build, but with the land being in her name, and not going to be signed over to me until years to come, ????? any advise guys!!! thanks for your time.

Answer 1

Legally there is no problem, as the underwriters and a solicitor can write her into the mortgage agreement as an interested party, or as a security holder.
but she has to agree and co-sign the mortgage.


However a lot of companies dont like doing it, as it makes things more complicated if they want to take the house back, and it would mean she could lose the land completely if you dont keep up re-payments.

Honestly you will have to go through the details with a solicitor, but its possible and legal.

Answer 2

You have a couple of options:
A) take out the mortgage in both of your names, with mom as co-signer
B) Have Mom create a leasehold agreement wherein she is leasing the land to you (for .01 a year if need be), but you can still build on / improve the land.
If you go with option B, you need to make sure that the lender is aware that it is a leasehold property and that their guidelines accept them (most do, some don't)

Hope this helps!!