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  • FIRST POST
    • Matey Sailor
    • By Matey Sailor 4th Dec 17, 12:52 PM
    • 4Posts
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    Matey Sailor
    Can I buy in, and protect my money?
    • #1
    • 4th Dec 17, 12:52 PM
    Can I buy in, and protect my money? 4th Dec 17 at 12:52 PM
    I'm looking to move in with my partner very shortly. She lives in a house with a mortgage, I live in a flat that I've paid off. I was considering buying half the house off her once I had sold my flat. Can I do this, and can I protect myself from possibly losing money in the event of us ever splitting up?


    Thanks.
Page 1
    • Comms69
    • By Comms69 4th Dec 17, 1:04 PM
    • 1,318 Posts
    • 1,065 Thanks
    Comms69
    • #2
    • 4th Dec 17, 1:04 PM
    • #2
    • 4th Dec 17, 1:04 PM
    I'm looking to move in with my partner very shortly. She lives in a house with a mortgage, I live in a flat that I've paid off. I was considering buying half the house off her once I had sold my flat. Can I do this, and can I protect myself from possibly losing money in the event of us ever splitting up?


    Thanks.
    Originally posted by Matey Sailor
    Well yes, assuming you buy in legitimately. As in, remortgage, with increased equity payment from your sale and named as joint tenant / tenant in common etc.


    That wont stop you losing money per se, if the house price crashes then that's your loss. But it will protect your investment in the property
    • Matey Sailor
    • By Matey Sailor 4th Dec 17, 2:19 PM
    • 4 Posts
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    Matey Sailor
    • #3
    • 4th Dec 17, 2:19 PM
    • #3
    • 4th Dec 17, 2:19 PM
    Oh yes, it would all be legitimate.


    So, it would be like shared ownership then? I own 50% outright , mortgage free. Then she has 50% with a mortgage in her name only.


    Naturally, should prices crash, we both lose equally on value.
    • ACG
    • By ACG 4th Dec 17, 2:33 PM
    • 15,906 Posts
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    ACG
    • #4
    • 4th Dec 17, 2:33 PM
    • #4
    • 4th Dec 17, 2:33 PM
    Be careful about this. There is a recent post where someone owns a house with their ex. 7 years down the line, the ex wants to sell the property - not for the money but to allow to get a new mortgage and the person posting does not want to sell.

    Because they have a child together, the general consensus is that the courts would not allow the other person to force a sale.

    So think carefully, discuss it with a solicitor and see what can be done to protect you.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • 00ec25
    • By 00ec25 4th Dec 17, 2:37 PM
    • 5,571 Posts
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    00ec25
    • #5
    • 4th Dec 17, 2:37 PM
    • #5
    • 4th Dec 17, 2:37 PM
    Oh yes, it would all be legitimate.

    So, it would be like shared ownership then? I own 50% outright , mortgage free. Then she has 50% with a mortgage in her name only.
    Originally posted by Matey Sailor
    No.

    if there is a mortgage on the property then all legal owners of the property must be party to the mortgage

    you can buy 50% from her, but if that does not clear the mortgage in full, you and her will need to re-mortgage as a joint mortgage for the remaining balance that is owed.
    You and her will then be jointly and separately liable for the whole of the mortgage.

    Makes no difference if you "only" own 50%, you are liable for 100% of any o/s mortgage, and no lender will allow another owner in a property who is not on their mortgage

    Naturally, should prices crash, we both lose equally on value.
    Originally posted by Matey Sailor
    not necessarily equally, it depends how you account for the fact that you own 50% of the property as a deposit and since then you have each been paying the mortgage

    read any of the hundreds of posts asking how to calculate who owns what if we split questions. Here is one to get you started:

    http://forums.moneysavingexpert.com/showthread.php?t=5754887
    Last edited by 00ec25; 04-12-2017 at 3:59 PM.
    • aneary
    • By aneary 4th Dec 17, 2:37 PM
    • 817 Posts
    • 704 Thanks
    aneary
    • #6
    • 4th Dec 17, 2:37 PM
    • #6
    • 4th Dec 17, 2:37 PM
    Oh yes, it would all be legitimate.


    So, it would be like shared ownership then? I own 50% outright , mortgage free. Then she has 50% with a mortgage in her name only.


    Naturally, should prices crash, we both lose equally on value.
    Originally posted by Matey Sailor
    I'm not positive but you may have to be on the mortgage too, it's unusual to have joint owners but a single mortgage you are best of speaking to a mortgage advisor and a solicitor.
    • davidmcn
    • By davidmcn 4th Dec 17, 2:43 PM
    • 6,279 Posts
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    davidmcn
    • #7
    • 4th Dec 17, 2:43 PM
    • #7
    • 4th Dec 17, 2:43 PM
    So, it would be like shared ownership then? I own 50% outright , mortgage free. Then she has 50% with a mortgage in her name only.
    Originally posted by Matey Sailor
    No, the mortgage has to over the whole property - a lender can't really repossess and sell the property without kicking you out too!
    • Matey Sailor
    • By Matey Sailor 4th Dec 17, 3:16 PM
    • 4 Posts
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    Matey Sailor
    • #8
    • 4th Dec 17, 3:16 PM
    • #8
    • 4th Dec 17, 3:16 PM
    So, how does shared ownership work then if there can't be two 'owners' of a property? I've no intention of going on the mortgage, I will have already paid half for the place, so my moral responsibility is complete.
    • rtho782
    • By rtho782 4th Dec 17, 3:25 PM
    • 1,037 Posts
    • 748 Thanks
    rtho782
    • #9
    • 4th Dec 17, 3:25 PM
    • #9
    • 4th Dec 17, 3:25 PM
    So, how does shared ownership work then if there can't be two 'owners' of a property? I've no intention of going on the mortgage, I will have already paid half for the place, so my moral responsibility is complete.
    Originally posted by Matey Sailor
    You can do it like that, you just need to become a housing association and not live in the property.
    Deposit Saved since 01/12/15: £13,000 / £15,000 House Bought!

    Debt Cleared since 01/12/15: £6,000 / £7,500
    • davidmcn
    • By davidmcn 4th Dec 17, 3:26 PM
    • 6,279 Posts
    • 6,061 Thanks
    davidmcn
    So, how does shared ownership work then if there can't be two 'owners' of a property?
    Originally posted by Matey Sailor
    You own and have a mortgage over your 25% (or whatever) share of the property, and a tenancy agreement with the landlord for the remaining 75%. Your lender and the landlord have a separate agreement between them about what happens if either of them wants to evict you.

    None of that is relevant here though because you can't set up something similar, since you're not a social landlord.
    • Tom99
    • By Tom99 4th Dec 17, 3:29 PM
    • 681 Posts
    • 407 Thanks
    Tom99
    So, how does shared ownership work then if there can't be two 'owners' of a property? I've no intention of going on the mortgage, I will have already paid half for the place, so my moral responsibility is complete.
    Originally posted by Matey Sailor
    To be a part owner you will have to be party to the mortgage if there is one. However you can have a Deed of Trust which will say your partner is responsible for paying all the mortgage and on a sale any mortgage outstanding will be taken from their share and not yours.
    • aneary
    • By aneary 4th Dec 17, 3:32 PM
    • 817 Posts
    • 704 Thanks
    aneary
    Wouldn't you be be better off, moving in for a trial period, sell your property and bank the money. If all is well in 6 months time buy somewhere together.
    • getmore4less
    • By getmore4less 4th Dec 17, 3:35 PM
    • 30,819 Posts
    • 18,427 Thanks
    getmore4less
    you can do what you want with them being sole legal owner and holding a sole mortgage with you as a beneficial owner but that will come with complications.

    If you can afford 1/2 maybe the options where you both own 50% and you just put in enough to match the equity and keep the rest of the cash.

    you could then consider something like an offset mortgage to reduce your share of the interest.
    • seashore22
    • By seashore22 4th Dec 17, 3:41 PM
    • 742 Posts
    • 1,491 Thanks
    seashore22
    Have you told her what you're considering? From your posts it would appear not.
    • 00ec25
    • By 00ec25 4th Dec 17, 4:00 PM
    • 5,571 Posts
    • 4,972 Thanks
    00ec25
    So, how does shared ownership work then if there can't be two 'owners' of a property? I've no intention of going on the mortgage, I will have already paid half for the place, so my moral responsibility is complete.
    Originally posted by Matey Sailor
    sounds like moving in with her is not something you should be doing if you are talking about moral responsibility
    • Matey Sailor
    • By Matey Sailor 4th Dec 17, 4:30 PM
    • 4 Posts
    • 0 Thanks
    Matey Sailor
    Thanks all, most useful.


    Seashore22, yes, we've discussed it actually. She's in agreement she's the one who can't afford her share, and will need the mortgage. I'll just be paying half the running / domestic bills. It would appear the "deed of trust" option that Tom99 mentioned is the way ahead. I'll speak to my lawyer in a couple of months.
    • seashore22
    • By seashore22 4th Dec 17, 4:51 PM
    • 742 Posts
    • 1,491 Thanks
    seashore22
    Thanks all, most useful.


    Seashore22, yes, we've discussed it actually. She's in agreement she's the one who can't afford her share, and will need the mortgage. I'll just be paying half the running / domestic bills. It would appear the "deed of trust" option that Tom99 mentioned is the way ahead. I'll speak to my lawyer in a couple of months.
    Originally posted by Matey Sailor
    To be fair you never at any point said what your girlfriend thinks and how she feels. It was a reasonable assumption.
    • G_M
    • By G_M 4th Dec 17, 5:09 PM
    • 42,313 Posts
    • 49,157 Thanks
    G_M
    1) forget the idea of 'shared ownership'. This is a specific arrangent where occupiers part-buy and part-rent. It does not apply here.

    2) you will be a 'joint owner'.

    3) you can own as 'joint tenants' or 'Tenants in Common'. For greater protection, own as 'Tenants in Common'. read the difference here

    4) As 'Tenants in Common', depending how much money you pay her, and how much the property is worth at that time, you can own 50% each, or 40/60% or any other %

    5) if a mortgage is still required (ie she cannot pay off her current mortgage entirely using your cash) then you will both have to apply for a joint mortgage (and joint ownership).

    6) As 'Tenants in Common', you should draw up a Deed of Trust, specifying who owns how much etc. This should also take acccount of who makes mortgage payments, pays for maintenance etc.as well as what will happen if one of you wants to sell etc. Consider all possible future scenarios (one of loses job, children, separation etc) and agree what would happen

    7) joint property ownership is a bigger commitment than marriage. If you are not ready for marriage, what makes you think you are ready for joint prroperty ownership!!!!
    Last edited by G_M; 04-12-2017 at 5:13 PM.
    • ThePants999
    • By ThePants999 4th Dec 17, 5:15 PM
    • 904 Posts
    • 1,057 Thanks
    ThePants999
    I thought there was a mechanic whereby you could sign something to say you'll allow the mortgage company to repossess and evict you if they need to, even though you're not named on the mortgage? Am I making that up?

    Hmmm, maybe that's just for people who are resident but not part-owners.
    • 00ec25
    • By 00ec25 4th Dec 17, 5:34 PM
    • 5,571 Posts
    • 4,972 Thanks
    00ec25
    Hmmm, maybe that's just for people who are resident but not part-owners.
    Originally posted by ThePants999
    correct, it is
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