Sole mortgage, joint ownership?

DVardysShadow

CLH82 wrote: »

I am contributing half of our 10% deposit.

Our original joint mortgage app (that was declined) was made with one mortgage company, then our broker told us the following day that he'd managed to get us a sole mortgage (in my fiances name) accepted with a different company, so I don't feel as though he did plead our case for a joint mortgage with the first company. It didn't pose an issue at the time as we thought both our names would go on the deeds, which we now know is not the case. Such a pickle!

If I read things correctly, the deed is done and the house is now bought, contracts exchanged and completed in you fiance's name? Is this correct?

Have you put any money into the deal? [answered - 5%] How did you find the broker? How did you find the solicitor? Did you jointly instruct the solicitor?

Overall, this has moved on from being a mortgage problem and while this forum has some relevant expertise [and would have been the best place before applying for the mortgage], there are a couple of other forums on this site which could give more relevant input to the situation as it now is.

I suggest you give some answers to the questions above and we can see where to take things.

DVardysShadow

Conrad wrote: »

.... Having read this last part of yours I think you have no basis to complain.

As it has come as a big surprise to OP that her name is not on the deeds, the matter, IMO was not adequately explained. OP and fiance together are the Mortgage Broker's client [singular]. The consequences of the sole application should have been explained, and I hope you would be agreeing with me on that point, even if you would not agree that the broker could have gone on to identify the consequential issues and how to address them in the way that the professionals have been able to do here.

holly_hobby

Yes,DVS, I have already raised with OP that a trust deed, life assurance and will provision is to be effected in respect of the deeds issue.

It does worry me somewhat though that the broker has gone down this route, and appears not to have explained the ownership implications, or the very necessary protection that is reqd to protect the OPs interests.

It worries me that he hasn't botherered ...... and even more so if its becuase he simply doesn't understand or appreciate the issues the single app (for single individuals) has raised (which I fear may well be the case !).

That could be a case of negligence, in the event that OP was essentially evicted on the partners death (if not married at that point), and if proven that the broker never disucssed and/or referred them to a solicitor or licenced practitioner to address the estate and will issues raised as a result of the manner in which the mge application was adminstered by them.

H

CLH82

The deeds have been received today, but not yet signed and returned. Contracts have not yet been exchanged & sale not yet complete. I am beginning to feel that our broker is all to blame and has not done his job properly. He did not explain the implications of a sole mortgage compared to a joint in relation to joint ownership. An initial post however, did say that I am not yet at the point of no return on this matter. Where and what do I do next to ensure I do not lose out if either fianc! dies or our relationship comes to an end? We have a child together too, so I need to ensure some kind of security in the unfortunate event that either of these situations occur.

CLH82

Broker & solicitor were recommended by fiances father who is a landlord and uses both on a regular basis. I've left fianc! to do all dealings re: phone calls to broker and solicitor. No deposit had been paid as of yet.

holly_hobby

Firstly, lets deal with the death issue, and the impact on the estate.

On death, and if you are not married and there is no will, your child (and other issue if he has children with previous partner/s), under the laws of intestacy will inherit his whole estate. (under trust if they are minors at the time of death)

If you are married, you will inherit the lot under a ceiling amount (250k from memory), any estate over the pivotal sum will result in you inheriting the 250k and all chattels, with a lifetime interest for 50% of the excess estate held with his surviving children.

A WILL however trumps all of the above .. (unless succesfully challenged in court) ... so HE needs to make a WILL .... can't be any plainer !!!!

Mge

You could ask the mge lender to consider you as a jnt applicant, as you know the issues, you could put together an explanation as to why the payment issues occured, why you are no longer in that financial position (ie demonstrate a change in circs to them). This is reqd even though your partner's salary is suffiicent to service the loan, its sort of a moral line the lender takes, with their assumption that by being financially and personally assoiciated to you, your "lax" attitude to repayment of debts may come to affect his judgement too ... I know, I know its not fair ... but this is the type of evaluation lenders make, based on experience/historic data of similar situations.

If its a no go with the current lender, how many do you trawl through ?? With a 90% LTV and fairly recent late payments, they certainly won't be jumping for your business, so its not an easy one.

You could let it go through on his name with the current lender (if they will allow post your consideration, or you elect not to try to be added as a jnt applicatn), and just take the above legal action I have told you to ...

WILL, TRUST DEED AND LIFE ASSURANCE

LA at the barest minimum on him for at least the mge debt (jnt if affordability allows), but now knowing there is a child (issue), the real minimum requirements are for sustaining living costs of the survivor and child in addition to the mge repayment, post his or your death, which just up'ed the anty somewhat !!

You may want to change broker, I don't know what he has said or his experience, or what he is authorised to advise on. But you certainly need to see a solicitor (Will & Trust), and an IFA for the life and income protection issues you have, in addition to the mge requirements.

Sure others will be along with comment .. I will help as much as I can too.

Holly

CLH82

Huge appreciation for all the advice and info. It's really helping so much.

What if we carry on with the way things are going at the moment, continue with the land registry and mortgage in his sole name in order to complete, and have a will drawn up, can we add my name at a later date to the mortgage and land registry, if so, what is the advised number of years to wait until we can do so?

So a will would cover me in the event of partner's death, is there any other type a paperwork we could have drawn up that states what will happen to the house in the event of a split?

holly_hobby

Yes - mge wise , and as stated earlier, you can proceed on the sole basis, and then in a year or so apply for a TOE, hopefully as previously stated the further about of daylight between your blips, and excellent mge conduct during the time, will assist your request.

In the event of a split, you need to speak to your Solicitor who will draw up a legal agreement between you on the division of assets in the event of a split (pre marriage), inc the repayment of your deposit, if you are not on the deeds/mge at that point (which I certainly hope won't ever need to be enacted).

Hope this helps

Holly

DVardysShadow

Actually, this whole thing stinks. Really badly.

No doubt you have a lovely house in view and there is so much that you feel you will lose by not going through with this. But I hope that the old heads on here will back me up when I suggest that you cancel the whole deal. Forget the house and the mortgage. See what happens. Leave house purchase or anything on ice for 6 months at the minimum. Refuse to be argued or talked around - if this happens, strengthen your resolve. It could be the best 6 months marking time which you ever spent. I really don't want you 5 years from now saying 'That bloke Shadow on MSE said leave things for 6 months and I did not', because where you are now, I think you have some life changing decisions to deal with.

As the Mortgage Broker did not advise you on the consequences of a sole mortgage, this is not good. It is even worse that such misleading advice was given when it appears that your name never went on a mortgage application. And the alarm bells are going off big time that your fiance's father recommended this broker and that they have a significant business relationship already.

I beg you, don't go any further with this. Buying a house is a big thing. But what is at stake here is even bigger.

I suggest you go to the Marriage, Couples & Family MoneySaving forum http://forums.moneysavingexpert.com/forumdisplay.php?f=24 and just ask WWYD [what would you do?] - mentioning you have already posted here.

Mention

• You are buying a house with your fiance
• You are putting in 5%
• His father recommended a broker with whom he does business
• The broker said that your joint application was rejected
• Broker found another lender for a sole application
• You now discover from the deeds to be signed for the purchase that you will not be a part owner - but the broker made no mention of this
• You now discover that your credit files were never searched in connection with the original joint application and you have been given to understand that you would be acceptable on a joint mortgage
• You want to continue with the purchase, but you have been strongly urged to put the whole idea of any house purchase on ice for 6 months and see what happens

DVardysShadow

holly_hobby wrote: »

Firstly, lets deal with the death issue, and the impact on the estate.

There is more at stake here than a stinking house and a stinking mortgage. From the mortgage perspective, your advice is good as ever. But really, I think to proceed with anything at this stage will be potentially a huge mistake with consequences outwith the remit of mortgages and housing.