Joint Ownership - 1 Name on Mtge??

kungfurasta · 8 April 2008 at 10:24PM

My other half and i are buying a house, she is getting a mtge for £112k and i am putting in £55k cash. We will both be paying the mtge and all bills equally. I am not going on the mtge as its just quicker and easier as i am self employed.

Am i entitled to any interest on the £55k if the property increases in value and we then sell?

Can you confirm if there is any other legally binding contract we can have to say we are are joint owners and to specify our individual percentage shares in the property and what will happen in the event of us seperating?

All the sol. has come up with is a Declaration of Trust......

My Sol. says......"The mortgage must be in both names or the title must be in one name only. The declaration of trust is merely a document that would protect your financial contribution into the property. It is not registered at the Land registry it only protects in the event that you split up. It is not legally binding on the title"

What should i be doing here?

Many thanks.

S.

Doozergirl · 8 April 2008 at 10:45PM

Your solicitor is right; if there are two names on the deeds, then there must be two names on the mortgage. You are then jointly and severably liable. It's clean for the mortgage lender if they need to repossess - they won't be in to fighting you for shares of the proceeds.

If you own the property as tenants in common, you can assign who owns what percentage of the property. If you split up, you can't dictate how much the property is worth or how much of the mortgage has been repaid, therefore who actually owns what percentage, so the deed of trust will probably contain some interesting sums.

Otherwise you buy the house yourself in your name and see a whole of market mortgage broker about a self-cert mortgage.

mrs_deadline · 8 April 2008 at 10:51PM

I was in exactly your situation - we got the size of mortgage they would lend on my partner's salary alone, but still took it out as a joint mortgage. Only his payslips etc. were needed for lending purposes which was a lot simpler as I didn't have sufficient years of accounts. But definitely put the mortgage and deeds in joint names if it's a joint purchase.

Richard_Webster · 9 April 2008 at 7:30AM

You might be able to register a restriction against the title that effectively says that no disposition of the proeprty can be made without your consent. See what OH's solcitor says about this.

If you had a deed of trust that effectively said that although the property was held by OH it was agreed that the beneficial interests should be divided in certain proportions then this restriction would protect your interests and prevent a sale (other than by the mortgage lender in possession) without your consent.

kungfurasta · 9 April 2008 at 9:16AM

Richard_Webster wrote: »

You might be able to register a restriction against the title that effectively says that no disposition of the proeprty can be made without your consent. See what OH's solcitor says about this.

If you had a deed of trust that effectively said that although the property was held by OH it was agreed that the beneficial interests should be divided in certain proportions then this restriction would protect your interests and prevent a sale (other than by the mortgage lender in possession) without your consent.

Thanks for that Richard. At present we are using the same solicitor, i.e. our conveyancing sol. should i be getting my own sol to look after my interests??

Which would you recommend..a restriction against the title or a deed of trust??

Cheers,

S

Richard_Webster · 9 April 2008 at 10:04AM

Thanks for that Richard. At present we are using the same solicitor, i.e. our conveyancing sol. should i be getting my own sol to look after my interests??

Which would you recommend..a restriction against the title or a deed of trust??

Assuming in England/Wales same solcitor can do this if OH instructs him to do so but you can have your own separate solicitor if you want.

You would need Deed of Trust to set out the shares and restriction to make sure you get your share. If restriction there then any buyer's solicitor will want it removed and you would need to be contacted to lift it.

kunekune · 9 April 2008 at 8:17PM

I would suggest you ought to have separate solicitors. In NZ, that's the standard recommendation for couples purchasing a house if they aren't married. Your interests aren't the same, that's the problem, so one person is unlikely to be able to give each of you the best advice. A deed of trust setting out your shares is probably what you will be advised to do, although it is better that the legal title reflects the correct situation, as that will bind everyone.

Joint Ownership - 1 Name on Mtge??

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