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    • olivernath
    • By olivernath 30th Nov 17, 12:27 AM
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    olivernath
    Sole mortgage, but joint owners
    • #1
    • 30th Nov 17, 12:27 AM
    Sole mortgage, but joint owners 30th Nov 17 at 12:27 AM
    Various searches have not really answered my situation but I expect it is common.

    My partner's father is gifting her £40k towards a property. I have no deposit to bring to the table, but will be paying a larger proportion of mortgage and bills going forward. Due to low wage and poor previous history, I've applied and had a sole mortgage accepted. All we want to do is safeguard her £40k in the event that we split.

    We accept that if there's a loss (ie mortgage is repaid, and <£40k remains) she will get the lump sum remainder and we will share the loss 50/50. If there's a profit, the £40k goes to her and we share the remaining profit 50/50.

    I had hoped a declaration of trust would do it, but as she will not be on mortgage I am told she cannot be on deeds. I am keen to safeguard her as I would want the same in her position; are there any other ways?
Page 1
    • 00ec25
    • By 00ec25 30th Nov 17, 12:58 AM
    • 5,561 Posts
    • 4,958 Thanks
    00ec25
    • #2
    • 30th Nov 17, 12:58 AM
    • #2
    • 30th Nov 17, 12:58 AM
    have you asked your solicitor?

    a declaration of trust is an independent legal undertaking, it is not dependent on someone being on the mortgage and, if worded correctly, nor is it dependent on both parties being legal owners.

    a DoT establishes a "beneficial interest" in a property. That is completely separate to the legal ownership interest. The DoT says I have the benefit of a share of the financial value of this property which I can claim in the event of (insert own wording) X happening (eg. sale, relationship split) . It does not give the legal ability to sell (nor to stop a sale), but it does mean she can run after you for her share of the money if needs be.

    read: https://www.deedoftrust.co.uk/hmrc-guidance/
    Last edited by 00ec25; 30-11-2017 at 1:01 AM.
    • olivernath
    • By olivernath 30th Nov 17, 6:21 AM
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    olivernath
    • #3
    • 30th Nov 17, 6:21 AM
    • #3
    • 30th Nov 17, 6:21 AM
    Yes, their advice was to put the mortgage in joint names, as even with a declaration of trust, things could get messy. I have had other advice suggesting things would be smoother if we were married (we are not, and don't plan to be - nothing more sinister than not believing in marriage as a concept) although I'm sure this would do no more than give me a technical 50% right to the deposit which still isn't what I want.

    Given that your advice mirrors my initial assumption of how it should work, and assuming the such a deed is enforceable in court, I'll ask again.

    Many thanks.
    • Pixie5740
    • By Pixie5740 30th Nov 17, 9:44 AM
    • 11,198 Posts
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    Pixie5740
    • #4
    • 30th Nov 17, 9:44 AM
    • #4
    • 30th Nov 17, 9:44 AM
    What is it with people saying "technical" or "technically" for things that are not technicalities?

    Is your mortgage lender aware that the deposit is coming from your partner's father because for many lenders that is not an acceptable source? Low income and and poor (Who has decided your partner's credit history is too poor for a mortgage?) are not necessarily barriers to being on a joint mortgage with you. Have you actually spoken with an independent mortgage broker to go through your options?

    If you are going to be paying a larger portion of the mortgage repayments and your partner is not on the mortgage who will be be paying the rest of the repayments?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • xylophone
    • By xylophone 30th Nov 17, 10:15 AM
    • 23,647 Posts
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    xylophone
    • #5
    • 30th Nov 17, 10:15 AM
    • #5
    • 30th Nov 17, 10:15 AM
    It is you (rather than your partner) who has the low wage and poor history?

    Despite the above, you are able to get a mortgage.

    What is your partner's position?

    Is she earning? Is her history no worse than yours?

    If so, why not a joint mortgage with a Deed of Trust to cover what is to happen if you split up/want to sell etc?
    • olivernath
    • By olivernath 30th Nov 17, 10:37 AM
    • 10 Posts
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    olivernath
    • #6
    • 30th Nov 17, 10:37 AM
    • #6
    • 30th Nov 17, 10:37 AM
    It is you (rather than your partner) who has the low wage and poor history?

    Despite the above, you are able to get a mortgage.

    What is your partner's position?

    Is she earning? Is her history no worse than yours?

    If so, why not a joint mortgage with a Deed of Trust to cover what is to happen if you split up/want to sell etc?
    Originally posted by xylophone
    No, my apologies if this was unclear - shes the poor history and I am the main earner - but she is providing the deposit courtesy of Dad. Advice was that her history would scupper the rate, so seems silly to spend more to achieve the same funding.
    • olivernath
    • By olivernath 30th Nov 17, 10:42 AM
    • 10 Posts
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    olivernath
    • #7
    • 30th Nov 17, 10:42 AM
    • #7
    • 30th Nov 17, 10:42 AM
    What is it with people saying "technical" or "technically" for things that are not technicalities?

    Is your mortgage lender aware that the deposit is coming from your partner's father because for many lenders that is not an acceptable source? Low income and and poor (Who has decided your partner's credit history is too poor for a mortgage?) are not necessarily barriers to being on a joint mortgage with you. Have you actually spoken with an independent mortgage broker to go through your options?

    If you are going to be paying a larger portion of the mortgage repayments and your partner is not on the mortgage who will be be paying the rest of the repayments?
    Originally posted by Pixie5740
    Mortgage lender seems fine. Apparently the key is that their is a legitimate reason for the gift, so this is ok. Mortgage broker is the one who has given advice.

    I have pushed back to them, as I'm happy to have all the underwriting done on me if we can get her joint named. Perhaps naively my assumption that I can agree a certain thing under contract, isn't quite as easy as I feel it should be.
    • ThePants999
    • By ThePants999 30th Nov 17, 11:51 AM
    • 902 Posts
    • 1,056 Thanks
    ThePants999
    • #8
    • 30th Nov 17, 11:51 AM
    • #8
    • 30th Nov 17, 11:51 AM
    My wife and I have a joint mortgage, even though her income is zero, and was when we applied.
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