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Joint Borrower Sole Proprietor Mortgage (JBSP)
Joint Borrower Sole Proprietor (JBSP) mortgages are becoming increasingly popular as a way for family members to assist relatives in getting on the property ladder by acting as a co-borrower without owning the property. This arrangement can also save thousands in Stamp Duty Land Tax by avoiding the higher rate applied to additional properties.
Lenders will always require the supporting borrower to obtain Independent Legal Advice (ILA), and that’s where we can assist.
We work with JBSP mortgages from:
- Barclays Bank
- Generation Home Loans
- Family Building Society
- HSBC Bank
- Metro Bank
- Virgin Money
- Hinkley & Rugby Building Society
- Darlington Building Society
- Vida Home Loans
…and many other lenders offering JBSP mortgages in the UK.
Why is Independent Legal Advice Needed?
In a JBSP mortgage, the borrower listed on the mortgage but not on the property title takes on significant risk by being liable for the mortgage repayments without owning the property. From the lender’s perspective, it’s essential that this borrower fully understands their liability. Since they assume personal financial risk, including potential impacts on their solvency, without benefiting from property ownership, lenders want to prevent any future claims that the borrower was unaware of the mortgage terms and their financial responsibilities.
This is where ILA comes into play. Lenders have a duty of care to ensure all parties involved in a JBSP mortgage are fully aware of their obligations, especially when they do not directly benefit from the loan. By obtaining ILA, both the lender and the borrower are protected—the lender avoids future disputes, and the borrower receives professional advice before agreeing to the terms.
How to Obtain Independent Legal Advice
If your lender has requested Independent Legal Advice for your JBSP mortgage, we are here to help. We make it easy for you to obtain ILA, regardless of your situation. Our goal is to provide fast, affordable ILA via a short Zoom video conference call, allowing you to receive the advice in the comfort of your home or office.
How Does a Deed of Trust Work?
Ownership Shares
The Deed of Trust specifies the percentage of the property each party owns. For instance, if one person contributes more to the purchase price, their ownership share will likely be larger.
Financial Contributions
It outlines each party’s contributions towards the purchase price, mortgage payments, and upkeep costs.
Rights and Responsibilities
The document clarifies the rights and responsibilities of the co-owners, covering matters such as decisions to sell the property or resolving disputes.
Protecting Investments
A Deed of Trust ensures that if the property is sold, the proceeds are divided according to the agreed ownership shares, safeguarding each party’s investment.
Legal Basis
It provides a legal framework for addressing disputes related to property ownership and financial matters.
How It Works
01.
Submit Your Documentation
Once we receive your mortgage details and other relevant documents, we can schedule a video appointment.
02.
Video Call via Zoom
In a 30 minute approx video call, we’ll review lender documentation, such as theJoint Borrower Sole Proprietor documents , and discuss any associated risks.
03.
Postage (Wet Signatures)
After the required documents are signed and witnessed, you’ll need to send them to us for stamping and certification, as wet signatures are still mandatory.
04.
Digital Copies
We’ll scan the documents, email you a digital copy, and send the originals to your solicitor on the same day we receive them.
