How to add someone to to the property title?

I was supposed to go halves with my mum last year on a property but she lost her job at the wrong time so unfortunately we had to do it unofficially - the loan and title were completely under my name and she just pays for half the repayments.

It would mean the world to her to have her incorporated into the title somehow, even if it were just 1% instead of the full 50%. I suspect this would be really difficult with the banks? Anyone have any ideas how I could do this?
 
You have to seek legal advice. If she doesn't borrow to pay you the interest won't be deductible.

You basically need to enter into a contract of sale with mum, she has to pay stamp duty, you need a new loan application, discharge the existing mortgage and enter the new mortgage.

you may also have to pay CGT.
 
discharge the existing mortgage and enter the new mortgage.

CGT, fees etc aren't the concern. It's the mortgage - she wasn't included in the first place as she would have jeopardized our chances of getting finance as both of us were already near our limits and she had just lost her job. I suspect the bank wouldn't even give us the loan if we tried to get a new mortgage, so the same problem applies. I assume there's no way to have her added to the title without having to get a new mortgage?
 
Whenever an entity is added or removed from a loan then the application must be reassessed completed to ensure the people on the can service the debt.
 
I assume there's no way to have her added to the title without having to get a new mortgage?


I think you are confusing loans and mortgages - 2 different things. A mortgage is a charge over the title to the property. If you don't legally own property you cannot legally give a mortgage over the property.

But there is a branch of law known as equity which considers not registered interests.
 
I think you are confusing loans and mortgages - 2 different things. A mortgage is a charge over the title to the property. If you don't legally own property you cannot legally give a mortgage over the property.

But there is a branch of law known as equity which considers not registered interests.

Ok wrong terms sorry:) but you know what I'm trying to achieve right - I assume there's no way to really get my mum involved without a lot of pain with the banks? I think the best I can do for now is to draw up a contract, even if push came to shove the law probably wouldn't really back it. I just want her to feel secure as she enters retirement. I wish I could sign over even 1% of the title but a contract will have to do...
 
If your mum as paid part of the deposit and/or the repayments then she would have an equitable interest in the property. She may protect this interest by lodgding and caveat and you could enter into a mortgage with her which could be registered or unregistered. She should get legal advice.
 
If your mum as paid part of the deposit and/or the repayments then she would have an equitable interest in the property. She may protect this interest by lodgding and caveat and you could enter into a mortgage with her which could be registered or unregistered. She should get legal advice.

Awesome I will talk to a lawyer. Even if it's unregistered, will this cause me any grief for future financing? I'd still like to minimise any future to my borrowing / buying / refinancing ability.
 
Awesome I will talk to a lawyer. Even if it's unregistered, will this cause me any grief for future financing? I'd still like to minimise any future to my borrowing / buying / refinancing ability.

You will probably need your lender's permission to allow someone to place an unregistered mortgage over the property. But it shouldn't affect serviceability.
 
To me it sounds like you created a bare trust at the time, you just need a document that evidences that. Would cost you money to get her name on the title, duty and CGT if any. $550 in legals to effect the transfer also. But you could always record it as a bare trust which gives your mum an absolute entitlement to 50% of the property.

You would need legal advice to ensure done properly.
 
Back
Top