who to put on the mortgage

us,thecat&thedebt

hi all

have just put an offer in on a property and unsure whether to get mortgage in my name , joint with partner or with mum...

basically,
my nan/mum and myself ar putting the deposit down (20k)
i work for an estate agents so my mortgeg will be easily sorted

was going to do it by myself but am concerned that it is such a high mortgage in comparison to my salary

it will be my wages paying the mortgage as my oh doesnt earn alot..

will def have the deposit protected but am concerned about if its joint and me and oh split up ect

or even if its only in my name he could still claim half..

im really confused as you can prob see by my all over the place post

any advice most welcome

TIA

jordan_gibson

Me and my partner have recently split. I paid 100% of the mortgage and the bills.

The mortgage was in joint names so now that we are splitting my ex is getting 50% of the equity in the house.

If it just goes in your name then it will be yours. I have been told that there is no such thing as 'common law' partners any more. The only way he would be able to claim something would be to prove that he had paid towards it etc etc.

In my situation, I was paying all of the bills but if I did not put my partners name on the mortgage how does that look??? It is a very sensistive area so tread carefully.

Cara79

Hi there

I would suggest that if you can afford the mortgage reasonably on your own, then to do it yourself. If you put your mum/nan on the actual mortgage and deeds, when you come to sell, their share would be subjected to capital gains tax.

If your OH will not be contriubting to the mortgage etc, then definitely do not put him on your mortgage/deeds. I believe the way to get around him having a stake in your property if you split up, is if he pays you rent.

Or I think you can have some sort of agreement where he has no rights to the property, but someone else will have to clarify that. I think it might be tenants in common or something like that.

Obviously you will have something drawn up to protect the deposit you, your nan and your mum put in.

Hope that helps a little.
Cx

jordan_gibson

Cara79 wrote:

I think it might be tenants in common or something like that.


Cx

Correct - if he is on the mortgage as a tenent in common then it is yours as far as I know

Bossyboots

Can I just point out that if a couple split up it doesn't matter if the house is in just one person's name, the other may have a claim under the Trust of Land Act. Unless the other person has absolutely no input into the household, never does a job in the house, buys their own food and keeps all their money to themselves, they will accrue a share in the property.

As for you mum and your nan, if they go on the mortgage and you default, they will be liable. Your mortgage company may object to you putting people on the deeds who are not on the mortgage as it will be much more difficult for them to recover the property if you default.

What you actually need is a Deed of Trust drawn up setting out how the property will be split when it is sold or you and your partner split up. This can evidence the payment of the deposit and state that it be returned to whoever paid it. You also need to consider what would happen if the person loaning you the deposit died before you had repaid it as it will form part of their estate.

As for tenants in common, this is the phrase for when the people owning a house each own their own share to do with as they please in their will. It relates solely to ownership of the property, not the mortgage.

When a couple split, even a married couple, it is not law that the division is 50/50. This is a starting point called presumption of equity and the percentages are balanced against a number of things not least, original capital input.

us,thecat&thedebt

hi all

thanks for your replies

when talking of putting my mum on the house i meant getting a joint mortgage not just putting her on the deeds

im getting the jist (forgive me if its wrong) that seeing as my oh will be contributing towards bills (like sky, telephone, food bills) he would be entilted to half if we split so he may as well go on the mortgage...

i will be protecting my deposit i hear you can put something in that says if/when we sell the person (my mum) gets there deposit or % back.

i feel guilty not putting him on the mortgege but at the same time am unsure if its best

at the same time part of me wonders that if i am on the mortgage alone he could alk away with no liability...

god im confused

long and short my mum is unsure getting joint mortage is good idea..

and she is usualy right arn't mothers always!!!!

Bossyboots

I agree with your mum in respect of her position. I thing she would be unwise to become a joint mortgagee on your property.

Yes your partner could walk away with no liability if he is not on the mortgage.

Your partner will not necessarily be entitled to 50% as I have explained above.

us,thecat&thedebt

sorry to be pain bossyboots and thank you for all your advice..

my mum is willing to go on the mortgage with me

do you know what they base it on if you split up and the other party is not on the mortgage

littlejaffa

To throw a spanner in the works, as you will be financially linked to whoever you take on the mortgage with, you might want to make sure they have a credit file that won't effect you badly in the future.

ABN

What a sad thread.

Starting a life together is meant to be a joyous occasion yet you seem to be plaining for the split already which makes me wonder why your even bothering setting up together.

Maybe just a sign of the times but if I were the other half would be more a sign of lack of commitment/trust.

P.S. I hear that W.H.Smiths have a sale on sticky labels … you might want to consider getting some to mark all the possessions his/hers will save arguments later

Rosie75

Surely this is just good sense? You only have to look at some of the other threads on this forum to see that people do split up and that there are acrimonious disputes about who owns what.