Mortgage guarantor with 0% share as "joint owner"

[maaz-man]

Hi

Can anyone point me in the right direction, if it is possible to act as a gurantor to a mortgage/re-mortgage without becoming a beneficial ower of a property previously owned as "joint ownership" by two or more connected persons.

will be grateful for any help/advice.

Regards
Pervez

[Paul_f]

As far as I know a guarantor is only there to guarantee the repayment schedule of the mortgage, but usually the lender will want some sort of collateral should the guarantor default, and this often is by way of a second charge on their own property.

I don't think the guarantor will be entitled to claim any benefit from the property that is mortgaged. This is really a quesitons for your solicitor, who would in any even be involved in the preparation of the morgage deed on behalf of the lender, and guarantor.

[maaz-man]

Paul,

thanks for your respose.

The situation is slightly more complex.

An elder cousin of mine acted as a guarantor for mortgage puposes a flat owen jointly by his two sisters. The flat was not previously mortgaged. The Lender insisted that he be one of the joint owners as well as one of 3 parties on the loan. His sisters didn't have any credit histry being students.

He is abroad and will probably settle there, but now it seems there is no distinction between beneficiary owners and 1 of 3 legal owners. The sisters are in a fix now - as they don't want to cause any offence to him.

Any views/guidance will be appreciated
Regards

[sober]

I think the difference is in "joint tenenacy" and "tennants in common" type of title; in the latter case you can specify the share of ownership where as in the former you can't. Check with your solicitor who handled the case.

I might be wrong but that is what I understand to be the case; there must be other more knowledgeable members who can shed some light.

rgds
sober

[Paul_f]

I think you should consult a solicitor as your question is beyond the bounds of this forum.

[sober]

Hi Paul

Interesting observation. I didn't realise this forum had bounds placed on answering or commenting on questions. With so many knowledgeable members here surely someone would know something to guide this fellow member. It is an interesting question; do you have a view on this ?

Cheers :)
Mariam