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Mortgages and Marriage- solution?

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I bought my flat in August 2003 on my own and have been paying the mortgage since I bought it (nearly 7 years).
I am marrying my fiance in November and he will be moving into my flat in September. I want him to feel comfortable in the flat and for us to be equals in terms of the mortgage and the bills.
Can anyone suggest a solution? Should I put him on the mortgage or does this leave me un-protected if (worst case scenario) we were to split? Also since I have invested 7 years worth of mortgage in the flat how do we take this forward?
The key points are:
1. We are equals
2. I am 'protected' and won't lose everything if we split
3. He is 'protected' and won't lose everything if we split.

Can anyone help?
Thanks!

L x
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Comments

  • I would say it's up to you both how you handle things, but it can't hurt to do a little research into UK divorce law and how divorce settlements are handled so that you can understand how this might be handled and both be prepared sensibly in that unfortunate eventuality.

    Rgds
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    baselbaby wrote: »
    I bought my flat in August 2003 on my own and have been paying the mortgage since I bought it (nearly 7 years).
    I am marrying my fiance in November and he will be moving into my flat in September. I want him to feel comfortable in the flat and for us to be equals in terms of the mortgage and the bills.
    Can anyone suggest a solution? Should I put him on the mortgage or does this leave me un-protected if (worst case scenario) we were to split? Also since I have invested 7 years worth of mortgage in the flat how do we take this forward?
    The key points are:
    1. We are equals
    2. I am 'protected' and won't lose everything if we split
    3. He is 'protected' and won't lose everything if we split.

    Can anyone help?
    Thanks!

    L x

    To start I think seperate the property(assets) from the rest of the finances.

    Make the property ownership 50:50.

    OK how to do this, answer the following and I will post back.

    ou ned an agreed valuation(what do you think this will be?)
    What is the outstanding mortgage.

    How much cash does he have to invest in the property?


    Once the house assets are done 50:50 you can look at living costs,
    Many people do some kind of split based on salary if there is a big difference. (others think this should be done for the house)
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    baselbaby wrote: »
    I bought my flat in August 2003 on my own and have been paying the mortgage since I bought it (nearly 7 years).
    I am marrying my fiance in November and he will be moving into my flat in September. I want him to feel comfortable in the flat and for us to be equals in terms of the mortgage and the bills.
    Can anyone suggest a solution? Should I put him on the mortgage or does this leave me un-protected if (worst case scenario) we were to split? Also since I have invested 7 years worth of mortgage in the flat how do we take this forward?
    The key points are:
    1. We are equals
    2. I am 'protected' and won't lose everything if we split
    3. He is 'protected' and won't lose everything if we split.

    Can anyone help?
    Thanks!

    L x

    You can have an agreement drawn up with your solicitor to protect the equity you already have in the property.

    ie If the property is valued at 200k and your mortgage is 150k...the agreement would say in the event of you seperating you are first entitled to the 50k or 1/4 of the value ...then after that amount is deducted the property is divided 50/50....this is very normal (when people take advice) and then you can add him to the mortgage ...giving you both security this has been dealt with fairly......
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    VIGILANT22 wrote: »
    ie If the property is valued at 200k and your mortgage is 150k...the agreement would say in the event of you seperating you are first entitled to the 50k or 1/4 of the value ...then after that amount is deducted the property is divided 50/50

    You are not the first to fail to understand how to do this.

    To be done properly it should NEVER protect a cash amount anyone that gets this advice from a legal person should change them.

    It will not be fare one of the parties involved.

    The deposit buys a share of a variable asset so should always be a % of the that asset.

    The mortgage debt also just buys a share of the variable asset, again that should be split on how you pay it.

    Each share, the depost and mortgage shares, get their bits on sale and each person pays of their share of the mortgage debt.

    I cannot believe the number of legal agreements that are set up and fail to take account of all senarios properly and end up totaly one sided for one party over the other, seems the legal proffesion have no idea how to set up equity in a fare way.
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    i did say 1/4 ??? and then 50/50
  • You can set it up 60-50% or whatever way you feel it protects your 7 years of paying the mortgage.

    You will need to look at your wills and life insurance.

    You will need to change the owner ship to Tenancy in common, the issue you may have with this, is if one of you dies the 50% for example will go to the estate of the deceased not to the other party. You may need life insurance to buy the other party out and to pay the mortgage off.

    Before you do any of this get some legal and financial advice. You should both do this independently.

    Good luck
    "Banking establishments are more dangerous than standing armies." Thomas Jefferson
    "How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen

    Debt Apr 2010 £0
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    VIGILANT22 wrote: »
    i did say 1/4 ??? and then 50/50

    what you sad was...
    You can have an agreement drawn up with your solicitor to protect the equity you already have in the property.

    ie If the property is valued at 200k and your mortgage is 150k...the agreement would say in the event of you seperating you are first entitled to the 50k or 1/4 of the value ...then after that amount is deducted the property is divided 50/50....this is very normal (when people take advice) and then you can add him to the mortgage ...giving you both security this has been dealt with fairly......

    It should only ever be 1/4 of the value(for that example) and never a cash value.
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    what you sad was...



    It should only ever be 1/4 of the value(for that example) and never a cash value.

    ok boss..........:)
  • You could simply 'sell' the flat to both of you. You take the surplus and invest it wherever you desire.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • I believe if you are getting married you should take on equal everything, so in essence you are giving your equity away. I did this, but thats just me and my values on marriage. Although my Mrs did put a fair few quid into the garden and decorating the house etc.
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