Joint names - reasons why not?

absolute0

My partner & I will shortly be purchasing a property as first time buyers. I work full time but my other half stays at home a looks after our daughter. She doesn't work, but may be looking to work sometime in the future.

I understand that credit history is reviewed for both, but I can't see a reason as to why I wouldn't include my partner.

Can anyone give me reasons as to why I would only want to go for a mortgage in just my name (apart from the obvious 50/50 split if relationship goes on the rocks - not that it will)?

TIA

zzzLazyDaisy

No, but I can give you a very good reason why you would NOT buy the house in your sole name.

You have a partner who is the mother of your child. If (heaven forbid) anything happened to you, and the house was held in joint names, as 'joint tenants' (confusingly not about renting but ownership), then the house would automatically pass to your partner. There would be no messing about, no having to lodge probate and all that entails, just a simple form to complete and send to the land registry, with the death certificate.

For the same reason you should have at least some money in a joint account, so she can access it if something happens.

And please, make a will, if you have not already done so, because if you die she will not be entitled to anything in her own right, as English law does not make provision for unmarried partners (if you live in Scotland you need to take advice as the law is different there).

squeeks

The main two for me would be:
1) financially linked. If you are not already financially linked, personally I would try and keep it that way. If you are already financially linked then having a joint mortgage won't make any difference.
2) How much you can borrow. If your incomes are drastically different, you may find the amount you can borrow is less than if you apply as a single applicant. Depending no how much you want to borrow this may or may not be an issue.

holly_hobby

Following on from Lazy Daisy's excellent post especially re Will provision, you should also both ensure that you have life cover (either joint or 2 single policies written under trust for the benefit of each other), at least sufficient to cover the mge, but ideally much more than this to provide for your Daughter and her care, if either of you should die before she is an adult/independent. (this is just as important on your partner whom doesn't currently work, as upon their death provision for child care etc may well need to be found and paid for whilst you continue to work to provide)

Your mge/financial advisor should be discussing this with you and recommending provision, or referring you to a qualified adviser to do so.

Hope this helps

Holly

absolute0

Thank you for your replies & thanks for bringing the other things to my attention.

Joint application it is with Will & life insurance.

Ta