Buying property with civil partner - documenting ownership split

richarduk

Hopefully this type of issue hasn't been covered elsewhere...I couldn't find anything similar.

I'm looking to purchase a property with my civil partner, but as I have a much stronger credit score and he's a non-UK citizen we plan to purchase/mortgage in my name only as it appears the mortgage approval process will be vastly easier.

Being practical for the future, we want to sign a side agreement which would confirm the actual split of ownership based on actual financial contribution both in terms of deposit and ongoing contribution to the mortgage. It seems this is fine for non married/non-civil partners buying together, but it's less clear if such an agreement is possible given our situation.

Any thoughts?

DVardysShadow

The lender may not allow you to register the property in both names unless both names are on the mortgage. If you did that, effectively, it would be giving the party with the poor credit rating a get out of jail free card, if you defaulted, giving him rights over the property and the lender left to fight it out.

Effectively the lender has first rights on a substantial part of the equity through the mortgage [= 'death grip']. Paying it back is then down to the owners together and the lender would want to see all owners fully engaged in that process.

silvercar

Have you checked with a broker? Two people may be able to lend more than one, even if one has dodgy credit.

Running_Horse

My wife and I were in a similar position, but plan to be together forever, so none of that applies. Just buy the thing and see what life brings.

needahome_2

richarduk wrote: »

Hopefully this type of issue hasn't been covered elsewhere...I couldn't find anything similar.

I'm looking to purchase a property with my civil partner, but as I have a much stronger credit score and he's a non-UK citizen we plan to purchase/mortgage in my name only as it appears the mortgage approval process will be vastly easier.

Being practical for the future, we want to sign a side agreement which would confirm the actual split of ownership based on actual financial contribution both in terms of deposit and ongoing contribution to the mortgage. It seems this is fine for non married/non-civil partners buying together, but it's less clear if such an agreement is possible given our situation.

Any thoughts?

What you are envisaging is something similiar to a pre-nuptial, in that you want to set out what happens should there be a relationship split. well sorry mate, I got news for you, a civil partnership is exactly like a marriage. After all it's what we spent all these years fighting for! and as such any agreements like this are unenforceable, although may have some small influence should your relationship become dissolved.

from your posting, I get the feeling that you are much wealthier than your partner and are worried about losing some of your wealth, should your relationship ever ends? well if you're substantially richer than your partner, you may even find that you have to pay him an allowance should you split, to compensate for the lifestyle he has become accustomed to.

can I ask, you mention your partner is non uk, are you an older gentleman and your partner is much younger from the far east ?

silvercar

needahome wrote: »

What you are envisaging is something similiar to a pre-nuptial, in that you want to set out what happens should there be a relationship split. well sorry mate, I got news for you, a civil partnership is exactly like a marriage. After all it's what we spent all these years fighting for! and as such any agreements like this are unenforceable, although may have some small influence should your relationship become dissolved.

from your posting, I get the feeling that you are much wealthier than your partner and are worried about losing some of your wealth, should your relationship ever ends? well if you're substantially richer than your partner, you may even find that you have to pay him an allowance should you split, to compensate for the lifestyle he has become accustomed to.

can I ask, you mention your partner is non uk, are you an older gentleman and your partner is much younger from the far east ?

A post that started well then deteriated rapidly. So many assumptions, why?

needahome_2

silvercar wrote: »

A post that started well then deteriated rapidly. So many assumptions, why?

The guy sounds worried that his non-uk partner is going to get some of his wealth should they ever split, is it not reasonable to assume that said partner has been "imported" ?

Kyrae

We're going through a similar situation, where both myself and my partner are buying a house but we may only be able to take out the mortgage in his name as i'm unemployed at present. Spoke to the lawyers, and they recommend signing a 'declaration of trust', might be worth you looking into this option!

starbump

needahome wrote: »

The guy sounds worried that his non-uk partner is going to get some of his wealth should they ever split, is it not reasonable to assume that said partner has been "imported" ?

My first guess would be America, as pre-nups are both legal and common there. Does it really matter?

I can't answer the OP's question for sure but I'd have thought all marital assets are considered joint and half would go to the partner on divorce, regardless of any other agreements - particularly as the house would be acquired after the civil partnership. Oh, and if you don't apply for the mortgage in joint names then I believe the partner will be classed as a "dependent" so it may be worth the extra difficulties involved in applying jointly.

Fire_Fox

needahome wrote: »

The guy sounds worried that his non-uk partner is going to get some of his wealth should they ever split, is it not reasonable to assume that said partner has been "imported" ?

What a delightful turn of phrase you have.

PasturesNew

I think the other 'arf is a same sex. They're not often imported ... are they?
Probably some hot Aussie surfer.... I'd import one of those.