Help / Advice required from IFA / Mortgage people
11 July 2006, 10:14 AM
#1
Scooby Regular
Thread Starter
Join Date: Mar 2002
Location: Nottingham, England
Posts: 2,061
Likes: 0
Received 0 Likes
on
0 Posts
Help / Advice required from IFA / Mortgage people
Ok, so me and the gf in the middle of trying to buy a house together, she has a house to sell and I don't, and obviously we want both names on the deeds etc. no problems so far.
Now the mortgage, we want the mortgage to be in my name only so that she is in no way accountable for it. Is this possible, does anyone do this?
TIA
Paul
Now the mortgage, we want the mortgage to be in my name only so that she is in no way accountable for it. Is this possible, does anyone do this?
TIA
Paul
11 July 2006, 10:34 AM
#2
Scooby Senior
Join Date: Mar 2003
Location: Next door to the WiFi connection
Posts: 16,293
Likes: 0
Received 0 Likes
on
0 Posts
Edit : Scrap that, didnt read your post properly, not sure on having both names on the deeds and just the morgage in your name, wouldnt have thought so though. I'll keep my nose out 
lol
lol
11 July 2006, 10:39 AM
#3
Scooby Regular
Join Date: Nov 2000
Posts: 26,619
Likes: 0
Received 0 Likes
on
0 Posts
You can't do it. Say you could, then you didn't pay the mortgage. The mortgage company wouldn't be able to repo the house as she wouldn't have signed a mortgage agreement to do it.
Is there a particular reason that you want her to be on the deeds but not on the mortgage?
Is there a particular reason that you want her to be on the deeds but not on the mortgage?
11 July 2006, 11:05 AM
#4
Scooby Regular
Thread Starter
Join Date: Mar 2002
Location: Nottingham, England
Posts: 2,061
Likes: 0
Received 0 Likes
on
0 Posts
I thought that may be the case and Halifax have said that they don't but someone may, so I thought it was worth the questions.
The reason we want to do it this way is because she worked hard over the past few years (and bought and sold at the right times) to be in a position now of owning her own home with no mortgage, and I'm a first time buyer. This effectively means that means I've got a massive deposit although she'll own 60% of the house and me 40% - but she doesn't want to either be accountable for the mortgage or just handover everything she owns to me to buy a house. She doesn't want to loose everything she has worked for if I default on the repayments.
I hope that makes sense as to the reasons, I completely understand the position she is in, and I am on her side, I don't want her to be accountable either.
Is there any other way around this?
The reason we want to do it this way is because she worked hard over the past few years (and bought and sold at the right times) to be in a position now of owning her own home with no mortgage, and I'm a first time buyer. This effectively means that means I've got a massive deposit although she'll own 60% of the house and me 40% - but she doesn't want to either be accountable for the mortgage or just handover everything she owns to me to buy a house. She doesn't want to loose everything she has worked for if I default on the repayments.
I hope that makes sense as to the reasons, I completely understand the position she is in, and I am on her side, I don't want her to be accountable either.
Is there any other way around this?
11 July 2006, 11:11 AM
#5
Scooby Senior
Join Date: Mar 2003
Location: Next door to the WiFi connection
Posts: 16,293
Likes: 0
Received 0 Likes
on
0 Posts
How do them shared mortgage things where someone only owns half of the property and pays rent on the other half, can she not buy the house herself and sell half of it to you (if that makes any sense at all) I know theyre governmental schemes who mainly run them but Im sure this can be done privately aswell, hope thats of some use to you anyway. 
11 July 2006, 04:03 PM
#7
Scooby Senior
Don't do it!
I'm not an IFA, but I've been through a divorce. Never EVER put your partner's name on an asset, but not on the liability. In the event of a split, a court would give her half your house & you would be left with the mortgage. Because of that risk, I'm not sure that a lawyer would let you do it, but it's also worth bearing in mind for other stuff, like loans for a new carpet, cooker etc.
I'm not an IFA, but I've been through a divorce. Never EVER put your partner's name on an asset, but not on the liability. In the event of a split, a court would give her half your house & you would be left with the mortgage. Because of that risk, I'm not sure that a lawyer would let you do it, but it's also worth bearing in mind for other stuff, like loans for a new carpet, cooker etc.
Trending Topics
11 July 2006, 04:14 PM
#8
Scooby Regular
Join Date: Feb 2005
Location: Derbyshire
Posts: 12,304
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Nick
Don't do it!
I'm not an IFA, but I've been through a divorce. Never EVER put your partner's name on an asset, but not on the liability. In the event of a split, a court would give her half your house & you would be left with the mortgage. Because of that risk, I'm not sure that a lawyer would let you do it, but it's
I'm not an IFA, but I've been through a divorce. Never EVER put your partner's name on an asset, but not on the liability. In the event of a split, a court would give her half your house & you would be left with the mortgage. Because of that risk, I'm not sure that a lawyer would let you do it, but it's
11 July 2006, 04:23 PM
#9
Scooby Regular
Thread Starter
Join Date: Mar 2002
Location: Nottingham, England
Posts: 2,061
Likes: 0
Received 0 Likes
on
0 Posts
So what are you saying Nick, in that event I should take what's hers?
I think I know what you mean but she doesn't want to be part of the liability, which I understand completely and I am happy with - why should she be liable for a mortgage that she is not paying towards when she has already paid outright for 60% of the house?
For example £300000 house - she puts in £200000 from the sale of her house (which is hers outright) and I put in the other £100000 via mortgage but with both our names on which only I am paying - what happens in the case of a split?
Do we get half the house and half the debt each? does she take her 66% of the house I get the rest plus the outstanding mortgage? What?
We're not married by the way...
I think I know what you mean but she doesn't want to be part of the liability, which I understand completely and I am happy with - why should she be liable for a mortgage that she is not paying towards when she has already paid outright for 60% of the house?
For example £300000 house - she puts in £200000 from the sale of her house (which is hers outright) and I put in the other £100000 via mortgage but with both our names on which only I am paying - what happens in the case of a split?
Do we get half the house and half the debt each? does she take her 66% of the house I get the rest plus the outstanding mortgage? What?
We're not married by the way...
11 July 2006, 08:20 PM
#10
Scooby Regular
Join Date: Nov 2000
Posts: 26,619
Likes: 0
Received 0 Likes
on
0 Posts
You could probably do it as tenants in common, but any of the lenders I have come across that do this would still want her name related to the mortgage. Basically, If you hold a property as tenants in common, this means that each owner has a distinct share in the property. You can decide between yourselves what share of the property belongs to each owner. The important point is that each of the tenants in common always owns their share of the property, and they are only entitled to that percentage of the sale proceeds. You then get a 100% mortgage for the 40% of the house that you want to own, but the mortgage company will still want joint and several liability, so that if you fail to pay the mortgage, she will either become liable for it or they can force the sale of the house. In any event, her 60% is unrelated to the mortgage and would not be considerd to be part of the security, so she is alway guaranteed to get her 60% back.
11 July 2006, 08:27 PM
#11
Scooby Regular
Join Date: Nov 2000
Posts: 26,619
Likes: 0
Received 0 Likes
on
0 Posts
Quote lifted from somewhere else who explains it more eloquently
Points of law...
Lenders will insist that all applicants are on both the mortgage deed and the title deeds. This way they are jointly and severally responsible for the mortgage and mortgage payments.
There are two ways of setting the mortgage up – either as a ‘joint tenancy’ or a ‘tenancy in common’ – however this won’t have an impact on your legal obligations to repay the loan.
Joint tenancy is usually used in the husband/wife scenario. In this case when one party dies, the other portion is passed to the surviving spouse.
In the case of four different parties buying together, the best arrangement would be a tenancy in common, which would give each person an interest in the property equal to their contribution. So if, for example, one person has contributed more of a deposit they can own a larger part of the property. If contributions are equal all four can own equal parts.
Where the homeowners are tenants in common, if one party were to die, that party’s share would pass to his or her estate. Something that is not often considered is what will happen if someone decides to move on. Where two people have bought together and one intends to buy the other out there may be stamp duty to pay on the purchase of their portion of the property. This will be payable when the portion of the property being purchased is worth more than £60,000.
If the property has to be sold, normally monies are split in proportion to amount of deposit paid and/or percentage of monthly repayment made. This can be put in writing before the purchase
Lenders will insist that all applicants are on both the mortgage deed and the title deeds. This way they are jointly and severally responsible for the mortgage and mortgage payments.
There are two ways of setting the mortgage up – either as a ‘joint tenancy’ or a ‘tenancy in common’ – however this won’t have an impact on your legal obligations to repay the loan.
Joint tenancy is usually used in the husband/wife scenario. In this case when one party dies, the other portion is passed to the surviving spouse.
In the case of four different parties buying together, the best arrangement would be a tenancy in common, which would give each person an interest in the property equal to their contribution. So if, for example, one person has contributed more of a deposit they can own a larger part of the property. If contributions are equal all four can own equal parts.
Where the homeowners are tenants in common, if one party were to die, that party’s share would pass to his or her estate. Something that is not often considered is what will happen if someone decides to move on. Where two people have bought together and one intends to buy the other out there may be stamp duty to pay on the purchase of their portion of the property. This will be payable when the portion of the property being purchased is worth more than £60,000.
If the property has to be sold, normally monies are split in proportion to amount of deposit paid and/or percentage of monthly repayment made. This can be put in writing before the purchase
11 July 2006, 09:04 PM
#12
Scooby Regular
Thread Starter
Join Date: Mar 2002
Location: Nottingham, England
Posts: 2,061
Likes: 0
Received 0 Likes
on
0 Posts
Cool, cheers fast bloke that looks like what I'm after, so I guess we need to have a chat with the solicitor(sp??) to draw up the documents for that??? I'll pass the details on to the little lady and see what she says.
Thread
Thread Starter
Forum
Replies
Last Post
Sam Witwicky
Engine Management and ECU Remapping
17
13 November 2015 10:49 AM