Adding name to mortgage.

DJS1988

Hi All,

I am quite new to the forums - so please go easy on me!

I've done a search on the question I am going to ask, and some of the threads seem to have descended into trust issues and squabbling and I'm hoping this won't go the same way!

I moved into my boyfriends house in October 2009. He is 25, and has a mortgage on the property. He has earned a good wage since his teens and was able to get a 100% mortgage when they were still in existence!

We are doing the house up together - making his house our home to speak. He currently pays the mortgage and most bills, whilst I take care of the food bills, any "big" buys (ie. dining table, sofas etc - on 0% interest credit in my name, all paid off in time), and for the house renovations. This works for us, and will stay the same until the house is finished, when we will rethink how we do things money wise.

We both would like to put my name on the mortgage (and deeds?). I have made enquiries about this and we're looking around £5-600 to do this. Does this sound about right? This is with a local solictors, wondered if there was a way to do this online to cut back on any costs?

It's important to us both, but at the same point is a lot of money whilst we are in the midst of a house overhaul (and a holiday would be nice!). I've also been screwed over with my car recently so have money worries relating to that (please see my other posts if interested). We'd love to get this done asap, but seems like there are other vital things to get done, so if we can get this done but be MSE at the same time, it would be great!

Thanks,

getmore4less

So he has the house and the mortgage you have all the unsecured debts and costs.

Forget the cost get this onto even footing (50:50 ideal) ASAP.

Go through all the senarios and have an exit/ongoing plan for each

Death
new partners
kids
job loss
injury
etc.

Start with the lender what will they entertain on the mortgage side a panel solicitor might be cheaper for a simple change.

DJS1988

At this stage I am not worried that he has the security - he has had the house for a long time before I came on the scene and has worked hard to pay his mortgage. If we were to split tomorrow I would be prepared to walk away with nothing, as I feel I am entitled to nothing. The mortgage payments are high and greatly outweigh what I pay monthly.

I would like us to be joint beneficial tenants (is that the correct wording)asap, but with money tight at the moment £500 or £600 is not something we have as spare change..


We don't want to remortgage (as it's 100%), are lenders generally happy to add names, and do they usually charge (the above costs is solicitor only so not included any fees a lender may add)? I earn an ok wage so this will be in addition to my partners high wage, so I can't imagine there would be an issue here, as it's technically less risky for them with another wage involved?

Thrugelmir

Speak to your partners lender and sound them out. As for the fees obtain quotes from several firms to compare.

With no equity in the property theres no upside for you to be included on the mortgage currently.

You need to address your debt issues and switch the mortgage onto either a repayment mortgage or start a repayment vehicle.

As by the sounds of it your finances are stretched as it. Something rising interest rates will exasberate.

getmore4less

You get on the mortgage he loses his job you are stuffed.


Is there any equity in this place? are the improvements creating any.

beecher2

Personally my focus would be on overpaying the debt rather than on doing up the house, and definitely before thinking about a holiday. I'd be wary of being added to a mortgage for a property which will almost certainly be in negative equity, and where you'll be unable to get a new deal for the foreseeable future.

DJS1988

The house is not in negative equity, and yes the improvements we are making are adding to the value (adding downstairs bathroom etc). My partner is in a specialist job, so no worries about a job loss in the foreseeable future. We plan to stay in the house for good, so want to make it home.

Mortgage rate is fixed for the next 3 years. Finances are not "stretched" in that we are not in any debt, and I think in a good position for two people in early 20's. My question is if the amount I have been quoted sounds about right for the addition to the deeds.

Has anyone added names to mortgages - if so what did mortgage lenders charge? For some reason the fact they may charge (is this just an admin fee?) escaped me, I think I just assumed the solicitors took care of it all .

Gopes

Sorry OP, i don't have anything to add, in terms of a solution. However, I am contemplating going into a slightly similar situation with my partner.

We are looking at buying a place, but for a variety of reasons, we will probably buy in my name only (which i can afford) - mainly because partner is currently temping, and due to give birth in 4-5 months time - so doesn't have a guaranteed income that a mortgage lender will consider.

Notwithstanding, she will be contributing to the mortgage payments and costs, on an ongoing basis, and I am keen that her contribution be recognised in an appropriate manner, so that in the event that we ever go our separate ways, we have a means of ascertaining who gets what.

What we are thinking of doing, is to draw up a legal agreement (which can be appropriately signed and witnessed) - something along the lines of keeping track of exactly how much each party as contributed on an ongoing basis. In the event that we ever go our separate ways, in principle, we could value the property, and work out how much (if anything) would be left after hypothetically selling the property and paying fees/outstanding mortgage. That would give us a theoretical means of working out who gets what, without all the pain of having to re-mortgage (assuming I would want to keep the property).

Obviously, the devil is in the detail, in terms of accounting for all eventualities, and having the exit plans properly defined for each set of circumstances. But in principle, i think it should work.

Does anyone have any experience of going down this road (i.e. a legal agreement to reflect the relative contributions)? Any guidance would be very useful for me, and may also help the OP's dilemma.

Cheers
Gopes

beecher2

DJS1988 wrote: »

.

Has anyone added names to mortgages - if so what did mortgage lenders charge? For some reason the fact they may charge (is this just an admin fee?) escaped me, I think I just assumed the solicitors took care of it all .

Phone up your lender and ask them what the process is. Halifax charge £160 and you need to go into the branch. Ask them what credit checks etc they do - not sure if the high LTV will go against you.