How can my partner buy into my property?

sunrise1980

Hello

I own a flat which I have a small mortgage for and the flat is completely in my name. My mother loaned me half the flat's worth in cash which I need to give back to her when I sell, i also put a cash deposit down myself so got a mortgage for about 1/3 of the flat's worth. However now my boyfriends wants to buy half of the flat and go in on a mortgage together. Is there a way he can do this, Ie get a mortgage that pays me half of the flat which I can then give back to my Mum?

Sounds a bit confusing but really don't know how to go about this?

Hope you can help

Thanks

puddy

does he have any deposit or does he just plan to pay half the mortgate, asa female who has always had considerably more money and earning power than my partner, i would be very careful. if he refuses to pay his part of the mortgage you are still liable for the payments but he then owns part of the property. our house is owned 70/30 in my favour, but in reality my partner does not pay the same amount to the mortgage and didnt give me any money toward it

BitterAndTwisted

The first thing to do is to get at least a couple of valuations so you both know what you're going to have to remortgage for. Have you done that yet? How much cash has your boyfriend saved for a deposit?

hazyjo

Why does he want to go on your mortgage? What if the flat ends up in negative equity? Why would he want to buy into that? So you'd split any equity if it was in profit when it came to sell... How would you divide that? How would you be able to pay your mum back? I'd suggest selling and buying something else together, or just telling him to go buy his own place if he's that desperate to own property and he can rent it out or something if he wants it as an 'investment'. How long have you been with him? Has he got any savings? Great way to buy a flat without needing a deposit, I suppose... I'd tread very carefully if he has no savings. Without meaning to be tough, if you split up with him in 6 months' time after adding him to the mortgage, you're going to have a hellish time ahead. And if you do go down that route, it's not just a case of adding a name on. Does he have a sound financial history? Not that I'd even go down that route, but it's up to you at the end of the day.

Jx

sonastin

In practical terms, you would need to apply for a mortgage in joint names for (your current mortgage amount)+(however much mortgage he needs to pay for half the flat). You would use the mony from this mortgage + whatever deposit he is putting in to pay off a) your current mortgage and b) your mum.

There's a lot you need to think about before going down this route though...
Are there any early repayment charges on your mortgage? If so, how much?
Do you have to pay your mum 50% of the current value of the property or the cash amount she loaned you? How does the current value of the flat compare to the price you paid?
What will you do if you end up splitting up? I know that you aren't planning to do that just yet but you need to agree the "what ifs" now while you are still friends because its a lot harder once the acrimony creeps in.
Do you want to be financially linked to your partner? Is he a good credit risk (and are you?) If one of you has a chequered credit history, a joint mortgage could leave the other with a less than sparkly record too.

It is worth getting a solicitor to draw up the paperwork if you go down this route. You'll need one for the mortgage anyway and if you get him to set out who owns what then it is much harder to dispute if something did happen down the line...

poppysarah

How long have you been with this person? Are you planning a future life together or have you not thought more than a year or so ahead?
Sounds nosey - but it's a vital part.

buying a house together is a bit like getting married in that there's legal status changes that you need to think seriously about.

Do the "what if we split up" senario...
with house prices static, falling massively and increasing...

mrstinchcombe

I'm in a similar situation, I own a house (starter home, I was a FTB) but we have both agreed the other half wont buy into it. When it comes to upgrading we will then buy a place together owning it jointly from Day One and keeping it simple.

You have a flat so rightly or wrongly I'm assuming you will buy another place at some point, do it then, otherwise it gets messy with a rise or fall in value, how much of the principle you have paid off, etc

puddy

re the redemption penalty, we did the same, i had amortgage on my previous property and we bought this house together, so i sold mine and we applied for a mortgage for this but ported the previous mortgage iyswim, the mortgage amount and conditions, rate etc were ported but its a new mortgage because its now me and my partners mortgage instead of just mine. you cant just 'put' someone on a mortgage, it would be a new mortgage