• Mortgage Vs Remortgage

    By Guest on 28th Nov 2018

    A and B hold legal estate and a mortgage on property. The property needs to be "remortgaged" -- the borrower for the new borrowing will include person C. Options for new borrowing are: (1) C alone or (2) C with A or B. For each option, is the borrowing considered a "re-mortgage" or "new mortgage" and will the existing equity in the property contribute to the LTV calculation?

  • 1 Answers

    By Guest on 11/12/2018

    Either option will be a new mortgage.

    Not sure what you mean by the second part of your question "and will the existing equity in the property contribute to the LTV calculation" but both options involve a Transfer of Equity and there should be a Trust Deed put in place to say how the beneficial ownership is now split unless A,B and C will hold as Joint Tenants.

    Depending on the particular facts there may be an SDLT implication.

    Speak with a solicitor.

    www.pwpservices.co.uk

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