buying a house for someone else

knoxycube

hi all,my partner and i are in the process of buying a house but because of our credit history were unable to get a mortage,my partners sister has been able to get a mortage for the house in her name and my partner and i will be paying for it,i am not too keen on this but my partner is desperate to get the house,my question is where do i stand if there is any disputes over the house in the future? or if my partner and i split up? i dont want to pay for a house that isn't legally ours,is there anyway after the house is bought that i can get our names on the house as joint owners?we are in scotland by the way,any help would be grateful,

G_M

The house will belong to your partners sister. The Propert Title must be in the same name as the mortgage.

(sorry - I'm in England but would be surprised if this is different in Scotland)

McKneff

So in actual fact she will be buying the house and renting it to you. Thats all you can
do legal wise until you actually buy it from her. You will be tenants, nothing more.


She will be a landlord and will have to abide by strict rules - Gas safe certificate etc, etc,
Its a minefield being a landlord.

G_M

Only 'renants' if rent is paid. But contributing to her mortgage would constitute rent.

Maybe the answer is for her to buy it, and maintain it, and you to live there rent-free?

:rotfl: :T

McKneff

G_M wrote: »

Only 'renants' if rent is paid. But contributing to her mortgage would constitute rent.

Maybe the answer is for her to buy it, and maintain it, and you to live there rent-free?

:rotfl: :T

Yeah, right:rotfl:

knoxycube

as far as i know,once the house is bought my partner and i will move in and we will be paying mortage payments,i dont know if her sister is paying the mortage herself and we just give her cash every month,my partner is in bed so wont know all the details untill tommorrow,but if anyone has any suggestions of the best way to do this? i dont think her sister wants to be a landlord,i know when the mortage is settled her sister will pass the house onto my partner and myself if were still together but that wont be for 25 years,orginally her sister was meant to get a loan not a mortage and the house was meant to be a cash only sale but bank said it would be better if it was a mortage,my partner is just desperate to get out of this flat as we reisde in a dodgy area and have very noisy neighbours whiich the housing company,police and environmental agency dont seem to care about,she just wants the kids to be in a better environment so looks like we have no choice in the matter,i would of liked to have to had some kind of security knowing we are safe in the house if a family dispute arises at some point in the future,

chrest

Dont know if this would work, but maybe you could have a trust deed drawn up?!

hethmar

The sister will be the owner - you wont be paying the mortgage, you will be paying her. Bit dodgey. What if the sister decides to sell the house? What if she wants a mortgage herself and wont be able to get one because she already owns a house? You need good legal advice.

hazyjo

What's in it for her sister?

I don't get why she'd take the risk... what if you can't pay the 'mortgage'? How old is she? Is she really in her 'forever home' already? Won't she want a mortgage/bigger mortgage further down the line? Does she have her own family? How long is the mortgage she'd be taking out? So she wouldn't want anything at the end of it? I think you'd have to be tenants... wouldn't it be fraud otherwise?

I was once asked to take out a loan for a friend of around £7k over 5 years. I declined (now not my 'friend', I hasten to add - his choice!). I know you can really spend that money on what you like once you have it in your hand as a loan, but in my eyes (don't know about the legalities) it was fraud as I would have been obtaining that money for him and he would have been paying me back. If he stopped paying, I wouldn't have a leg to stand on and the debt would be mine.

I'd not want to rent off friends or family, and I certainly wouldn't want them putting an entire mortgage in their names for me. It seems like an awfully huge financial commitment. I'd be worried sick about you not paying for whatever reason (impossible to say that wouldn't happen as you don't know what's round the corner), or you splitting up. What if she needed that money and had to sell the house? What if that was in the next few years and it was in negative equity? What if one of you dies? Far too complicated for me to think any more about...

If I've got the wrong end of the stick, please let me know!

Jx

knoxycube

i was thinkg about having some kind of contract drawn up with her sister but my partner says were really lucky that her sister is doing this for us,all my partner is concerned about is the house,all i want is security and piece of mind as i will be paying most of it as i earn more,everytime i raise the subject my partner is not very keen on discussing it,say in a few years times we split up i could end up with nothing even though i will have put in more money than her or if she falls out with her sister we could end up homeless,in the past i got rid of my house and moved into my ex partners house and took over the financial reponse abillities but didnt get my name on the house and when we split i ended up with nothing and was forced to leave my previous employment as i had nowhere to stay in the area,

McKneff

A contract saying what............................

You dont seem to be taking it in.

You are not paying the mortgage, any money you pay will be to the sister for rent, only the person who is on the mortgage will be paying the mortgage.

The money you give to the sister is not mortgage, it is rent, and the sister will be the landlord.

You wont be losing out, you will be paying rent, same as thousands of thousand of other people in the country.
if you split up, you will be the same as any other tenant in the country. Rent is rent, onceyou pay it, it has gone.

Dont pay more than your partner, split all bills down the middle, its irrelevant how much more you earn.
Half rent, half bills.