Buying half my boyfriends house

bertha337

I'd like some advise on to how to start down the road of buying half my boyfriends house.

I would like to have my name on the deed and also on the mortgage. I also own my own property and I'd like to make sure that the two are kept independent of each other.

Where do we start?

Thanks.

kingstreet

You both approach his lender to see if they are prepared to add you to the mortgage. If they will do so, the matter is passed to a solicitor for a transfer of equity to be completed.

The cost will be in the region of £400 to £600 in total and there may be stamp duty implications, dependent on the value of the property.

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

bertha337

Thanks - another question...

Between the time when my partner bought the house and now a significant amount of works have been done. (I have financially contributed to the works)

Do I buy half the house for what it cost when he first bought it? (equity + half outstanding mortgage?)

Or do I buy half the house for what it's current value is?

Or is that to our discretion?

Vincent.waldorf

bertha337 wrote: »

Thanks - another question...

Between the time when my partner bought the house and now a significant amount of works have been done. (I have financially contributed to the works)

Do I buy half the house for what it cost when he first bought it? (equity + half outstanding mortgage?)

Or do I buy half the house for what it's current value is?

Or is that to our discretion?

Well if he has made a significant gain due to an increase in the house, why would he let you buy it at the price he bought it for? I think you would need to buy it at current value because if you split then you will get out what you put in. or draft into a contract that your gain in the event of a sale is split to the proportion of equity you have put in at todays market price?

why would he agree to sell you half (unless he is struggling) you have another asset in the background? plan to share?

bertha337

We are looking to become equal on our family home. We both have other assets.

I either buy half the value of the house for original purchase price, and agree to cover half the costs of the renovations or I purchase half of its current value and the cost of renovation gets swept under the carpet. But it needs to be fair on both sides. I'm not looking to swindle him, and he's not looking to take advantage of me. We are just trying to become 50/50.

Johnhowell

My opinion: Please do not do this! - I wish I hadn't.

If you must, then ensure a Deed of Trust is drawn up BEFORE any purchase and a Co-habitation Agreement drawn up with a family law solicitor.

The share of mortgage payements and split on sale as well as the share of ownership are fully described in the Deed. [Question to all - if share is 40/60 of ownership - should the mortgage payment be 40/60 as well? - ex mentions "joint and several" mortgage] Price based on average of three EA valuations.

The Transfer of Part (TP1) Land Registry form is used to describe the split of ownership and whether Joint Tenants(equal share) or Tenants in Common (either equal or non-equal). We kept the transferred amount to less than the SDLT threshold so none was due.

To save on the £600-700 fee to add me to the mortgage, we re-mortgaged and actually got a better rate. The old mortgage was out of any Redemption Fee lock-in period, and the new mortgage lender's solicitors did the conveyancing and there was only a very little upfront fees.

Open a joint account that your shares of expenses are put into for the household costs. I feel that running costs (utilities are 50/50) some people here mention it should be proportional to salary if very different - yet you both use the water/electric/gas/oil the same not proportional to salary! Keep a record of the agreed split of costs. My ex is now redundant and Council Tax benefit means she does not have to pay this, so we are now have unequal shares into the joint account accordingly.

The ex- sat there and said "we don't need to put things in writting, I will not screw you over" - love(!) is blind. I suspect I will lose several thousand now - not even considering the money ploughed in over the years of "being together".

Do not get me wrong - it is wonderful that you are together - but get wriiten protection for the future. I wish I still had my little two-up and two-down to move back to.

Good luck.

kingstreet

If you approach this the usual way, you will become jointly and severally responsible for the whole mortgage and will be a joint tenant of the ownership of the property.

It may not matter too much which price you use, as on this basis you will both be 100% owners, there is no ownership split, as such.

If either of you die, the ownership of the property remains 100% in the hands of the survivor and the property does not pass into the estate of the deceased.

You could opt for the less popular tenants in common, but this best suits those not in a formal relationship who would wish to see their share of the property pass to another person on death, rather than the survivor. However, their share passes into their estate, where it can be ravaged by debts on the estate, Inheritance Tax and the need to write a will and go through the probate process.

John makes a fair point about a deed of trust, but this does not impact on mortgage payments where the joint and several liability agreed to in the mortgage deed trumps any agreement between the individuals. Any decision to change the ownership of a property should be carefully thought out with the appropriate professional advice.

Land_Registry

Johnhowell wrote: »

The Transfer of Part (TP1) Land Registry form is used to describe the split of ownership and whether Joint Tenants(equal share) or Tenants in Common (either equal or non-equal).

A Transfer of Part form TP1 is in fact used to transfer ownership of part of the legal title i.e. if you were selling off part of the garden. It is not used to split the ownership in the way described.

If you do decide to Transfer the legal ownership of the title from your boyfriend to both of you then you would need to complete forms AP1 (application form) and TR1 (Transfer of whole). The boyfriend would be the Transferor and the two of you would be the Transferees. Both forms are available online at our website which also lists Notes on how to complete them and guidance on other matters which may arise, some of which have been mentioned by other posters.

How you decide to 'hold the property' i.e. tenants in common, 50/50 etc is also explained in the Notes although you may also wish to read our Public Guide 18 - joint ownership explained.

As other posters have mentioned much of the above will depend on how any existing/new lender view the matter. If they agree then the above information becomes relevant although Land Registry would always advise on seeking the advice of a suitable legal advisor whilst the lender will often insist that you do.