Partner buying half of my flat

MissPoppy_3

Hi
Have a bit of a dilema and need some advice.
I bought a 2 bed leasehold flat 4 years ago on my own and my partner moved in about a year ago. At present I have a fixed mortgage with Santander which is due to end in June, the original plan was to sell the flat and buy somewhere together using his savings and my equity as a deposit.

Unfortunately this isn't going to happen as my job is under threat of redundancy and we ideally need 2 incomes to be able to get a reasonable size house in the area we want to live in.
My boyfriend has now offered to use his savings to purchase half the flat we live in, which we think makes sense as he is effectively paying half the mortgage already and it will reduced the mortgage by a third.

My questions are has anyone been in the same situation and how much do the soliciters charge to do this?
Also as regards the mortgage will we just be able to add his name to the product we have or do we have to get a new mortgage?
and as for future house purchase how does porting a mortgage work along with applying for new mortgage on new house? when the fixed term ends can you merge mortgages together etc.

Thanks

Wh05apk

This is simply a "transfer of equity" Abbey charge £150 I think, + you will need your own solictors (about £400)

I would combine it with a remortgage to another lender, using their solictors, they will do the basic remortgage work, but charge you about £200 for the additional work involved.

Either way it is effectively a new mortgage, so will be subject to the usual underwriting criteria.

EB69

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Thrugelmir

If your partner is willing to invest his savings. Then remortgaging may be worth considering. As quite possibly you'll be able to obtain a better deal.

Good advice.

May I also suggest you consider entering into a cohabitation agreement to deal with how matters might be dealt with in the event of separation.

Consult a solicitor, well worth the money. Save any dispute if your relationship were to breakdown later.

dimbo61

Well we are now in March and your current deal finishes in June
So you need to find out how much the flat is now worth and how much the mortgage is outstanding
and the difference is your equity in the property.
If you need help with the figures we would need details IE equity, mortgage,savings ( boyfriend ) and may even be able to point you in the right direction of a good deal.
You may have to stay with Santendar if job situation unsure.
Consider offset mortgage if boyfriend has large savings and take legal advice

MissPoppy_3

Thank you for all your replies

Found out this afternoon my company is closing shop so we are under 90 day consultation period, so will be out of a job at the same time as my fixed rate mortgage ends

dimbo61 wrote: »

Well we are now in March and your current deal finishes in June
So you need to find out how much the flat is now worth and how much the mortgage is outstanding
and the difference is your equity in the property.
If you need help with the figures we would need details IE equity, mortgage,savings ( boyfriend ) and may even be able to point you in the right direction of a good deal.
You may have to stay with Santendar if job situation unsure.
Consider offset mortgage if boyfriend has large savings and take legal advice

As a rough guesstimate I think the flat is worth around £100,000 which is obviously less than I paid for it.
My mortgage statement in January quoted my remaining mortgage at £61,000, boyfriends savings is £20,000 and his earnings are £30000.

So can we apply for a joint mortgage when I am unemployed?

Also knowing I work in a dodgy sector for job secruity I do have MPPI with Iprotect, does anyone know if I do joint remortgage will this effect my claim?

dimbo61

Well if you have got MPPI what you cant do is change mortgage right now.
You need to give them a call and use any redundancy money to live on while you look for a new job.
go onto the SVR and carry on paying 50/50 for the time being
What you could do is take out an offset mortgage ( once you have a new job) and put the same deposit each £20K and have any spare cash in 2 offset accounts ( 1 in your name and 1 in boyfriend name offsetting the mortgage )
That way you are both paying 50/50 but have you own savings accounts and saving interest