House ownership query - HELP PLEASE!!!

humph_2

Here's the deal.

Wife and I selling our home. Wife owned the property prior to our marriage (6 years ago). Deeds in wife's name - present mortgage solely in wife's name.

Wife and I buying new property. Equity from old house (about £96000) going down as a deposit.

New mortgage (£85000) is solely in my name.

Ideally we wanted the new house deeds to show joint ownership. However our solicitor has said that this is not possible. The only way to get joint ownership is to have a joint mortgage. So he is saying the new house deeds need to be in my name and my name alone. (The solicitor is a long-term friend and very trust-worthy - I have not had a chance to speak to him yet about possible solutions)

How can we safeguard against relationship breakdown and messy split so that my wife would have legal re-course and rights of ownership - cos lets face it she has financed over 50% of the deal.

You support and guidance would be warmly appreciated.

Please just for the record - we have a solid and loving relationship!

Doozergirl

I think we're missing some information here. Otherwise you could just buy the house in joint names with you as the primary lender for salary multiples on the mortgage?

humph_2

Doozergirl wrote:

I think we're missing some information here. Otherwise you could just buy the house in joint names with you as the primary lender for salary multiples on the mortgage?

I don't really understand what your saying here. Can you clarify - new to this house buying selling business.

humph_2

I may be being ignorant here - but if a mortgage company lends me money to buy a house that I register in my wife's name plus my own. And then I default on the mortgage - they will be in a position whereby they could not recoup their money because my wife would own [outright] half the house.

Doozergirl

Sorry. I'm only really saying that I don't understand the reasons behind the need to buy the house in your name only. I was hoping you'd elaborate on your situation. Is it because you ultimatley want to own the house 50/50 but you're not putting down a deposit?

EDIT: Hadn't seen your second post to me when I wrote this originally. I wasn't saying that at all; of course you're absolutely right. I was saying that you would be the main borrower and the mortgage based on your salary but that your wife would be named on the mortgage too.

I''m no expert and I've bypassed many other threads of this type tbh, but if you were to buy and mortgage in joint names you can draw up what I think is called a deed of trust which says exactly what happens to the proceeds of the sale when the house is eventually sold. Your solictor should be able to elaborate for you if someone else doesn't come and clarify my fumbling mess of a post for me first!

Friendly_Solicitor

In any event your wife is going to have rights under the Matrimonial Homes Rights Act.

However, the best way to safeguard the transaction is to have a Declaration of Trust setting out the basis upon which you are to hold the equitable interest in the property. Of course the legal interest is to be in your sole name.

You would then register this document as a restriction upon the title to the property so that you could not remortgage or sell it without first having complied with the Declaration of Trust

humph_2

Many thanks Doozer & Friendly for your input.

Have a lovely Easter.

H.