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Tenants-in-common and remortgaging


jimbo17q

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If I was to own a property as tenants in common with friends of family.

Would I be able to remortgage/equity release my share of the property (assuming equity not an issue) independent from the other co-owners?

 

thanks in advance for any info.

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An interesting question. My view is probably not... whether co-owners are joint tenants or tenants in common, they are still jointly and severally liable for the entirety of the mortgage debt. So in all likelihood, the decision to refinance even one share would be taken by all owners (as the debt, and thus the repayments, would increase if you are releasing equity).

 

I would be interested to hear other hubbers' thoughts, however.

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Please note that anything I write is for information purposes only, and should not be taken as advice.

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You would all be jointly and severally liable, so essentially you would carry the full responsibility of the mortgage as bgcommt rightly says, as would the others.

 

There's nothing to stop you adjusting the terms of the tenants in common agreement though. Ultimately if you have a 50% mortgage but also a document that gives you 30% of the equity, you could borrow another 10% and drop your share of the equity to 20% when you remortgage. Obviously all parties would have to agree. Contact a conveyancer for more specific advice of course.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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