Remorgaging with partner?

berbatovutd

Apologies if this has been asked before, i've been searching for a while but can only seem to find information on people buying out partners rather than the other way round!

I currently have a morgage on a house on my own. I've had it for a few years, but now my partner is thinking of moving in. How does it normally work if decide to share the morgage.

For eg I bought my house for £140k and currently owe £100k on it. The house price will have altered a fair bit tho since then (Valued at £160k recently).

I literally have no idea how the money would balance out and what would happen with %'s etc, assuming we paid 50/50 once we shared the morgage.

I'm going to see a finacial advisor about it all before we actually do anythiung for certain, but I was just wondering about how it generally works so we can discuss it further and understand it better before we actually decide to go any further.

Thanks very much for any help!

Toughluck

You'll need a solicitor more than anything else. You are giving away a percentage of your home so its up to you.

I wouldnt have thought your current lender would mind that much.....unless she has been repo'd in the past.

plumtreebabe

hi there,

i did this a few years ago with my partner, I had a mortgage of £45,000 on a house valued at £50,000. The building society wouldn't let me add his name to the mortgage and we had to take out a new one between us. Because there was in theory £5,000 equity in the house, we either had to pay £170 insurance against the possibility of him going bankrupt (nothing to do with his credit rating) or he had to pay me half the value of the equity. Wierd huh?

i was incensed! I had a word with my dad and he gave my partner a cheque for the amount, he paid it into his account, he wrote out another for my solicitor and she gave me the money. Which i then gave to my dad.

If you have rather a large equity you might just want to pay the insurance, but you will need to talk to a solicitor about this one.

Best wishes

zzzLazyDaisy

You need to decide what you want to achieve.

I know it is not what you want to consider right now, but suppose it doesn't work out and she decides to leave. What do you feel would be her fair share? This isn't a scientific calculation, it is what you and she agree will happen.

Here are some options....

1. The house stays in your name only, you remain soley responsible for the mortgage, and she pays an agreed amount to you for rent/board and lodge/bills. In this scenario she does not aqcuire any share of the house.

2. You decide to put the house and mortgage into joint names. You agree a fair contribution from each of you. In that scenario, she acquires half the equity in the house, even if she later loses her job/stops contributing/leaves/whatever

3. You decide to put the house into joint names as 'tenants in common' in defined shares to take account of the equity that you have already built up. For example you might decide that you own 75% , she owns 25%. The mortgage still has to be in joint names which means that if you default the lender can pursue either of you for the full amount - the lender is not bound by the shares you each own, that is just between the two of you.

Does this help you to see it more clearly?

You need to see a solicitor to deal with the transfer of the property from your sole name into joint names, and you need to check with your lender that they will agree to this (there will be an admin charge, so if you are coming to the end of a fixed rate or discounted period you might want to wait until you remortgage so you don't incur additional fees unnecessarily.

Daisy

getmore4less

The two easy solutions are

1>You keep the house yourself and pay all the costs of owning, any contibutions are just that help with the bills a bit of rent etc like a lodger would, a bit clinical but saves hastle if you split.

2> You find out the current value, sell half, if there is equity the OH buys half of that for cash and you split the mortgage 50:50.

If you split you have to buy the half back(or sell) basedon the new valueation so you both benifit from any increase or fall in equity,

The fall in equity part part is the problem here, because they can just walk and not pay you.

Don't forget "ownership" if you are used to owning the place and doing things your way this will change if you sell half your house. but the other side if you keep it all then the OH does not get that feeling of ownership.

To some this is important others not.

berbatovutd

Thank you very much for all of the replies, they are extremely helpful! Will both have a more detailed look at the options over next few days before seeing a solicitor! Thank you once again for the help!