*Borrowing Money to an Unmarried Partner: New House*

IronWolf

Perhaps you could get your partner to give you something as collateral? Could be anything, but with the agreement that you hold onto it until she pays you back. It's not a legal contract but can give her incentive to pay you back if things go to hell

MonSaveHelp

InMyDreams wrote: »

I'm confused as to where you are in the process. You say you have completed. Has your partner already got the keys? Are you already living there? If not, have contracts already been exchanged? In other words, is your partner now legally committed?

Correct. The sale has gone through and partner will have keys very shortly. Will be transitioning to the new place over the course of the next month.

InMyDreams wrote: »

It seems to me that lending your partner £10K is a *very* bad idea unless you are happy with the risk of never seeing that money again. Even if you could get something legal drawn up, that's still no guarantee if there is no money there to pay you back, however good and honest your partner's intentions now are.

If your partner has indeed already exchanged (let alone completed) on this sale, he has been very foolish, in my opinion. It also puts you in an impossible position.

As per past posts, it was not possible to get a 2nd charge without declaring a 'beneficial interest' and jeopardising the bank mortgage, so this was not possible. I do overall trust my partner, however at this point I am wondering the best way of forming the best agreement to be as protected as possible.

My key questions are:

1. Can I get eventually get a 2nd charge on the property deeds now that the sale is completed, thus creating a secured loan?
2. How should I put together a document today/tomorrow to ensure I am covered as I have to provide the funds quickly?

I think I should have some written agreement in place in the short term, as lending the money without some paperwork will definitely leave me exposed?

.

shonzyd

This sounds like something that should have been thoroughly thought through way before now! have you sought proper legal advise on this?

poppysarah

So can't you resolve whatever is stopping you have 2 names on the mortgage and deeds?

MonSaveHelp

IronWolf wrote: »

Perhaps you could get your partner to give you something as collateral? Could be anything, but with the agreement that you hold onto it until she pays you back. It's not a legal contract but can give her incentive to pay you back if things go to hell

Thanks for the feedback. The house purchased has wiped the partner out and therefore they need these funds.

MonSaveHelp

poppysarah wrote: »

So can't you resolve whatever is stopping you have 2 names on the mortgage and deeds?

Two names on the property/mortgage may mean that if I wish to buy my own property later, I will be responsible for this one as well (even if a joint owner I have full responsibility for monthly repayment) and thus it will lower my affordability.

MonSaveHelp

shonzyd wrote: »

This sounds like something that should have been thoroughly thought through way before now! have you sought proper legal advise on this?

Thanks. Have looked into it.

The main way is to get a 2nd Charge 'secured' loan agreement. To do that will take some time (and cost) and therefore I will have to make do with an 'unsecured' one in the mean time.

I have seen these templates, I assume they will work for an unsecured loan agreement: Sample Loan Agreement Template

julieb1987

Are you going to be paying any of the mortgage or is your partner paying for it all? If I was paying part of the mortgage I'd want my name on the house or else she could kick you out and you have nothing!

Nice to see you trust your partner too, or I doubt you'd be asking this question. Why would you each want your own properties? Why not get one together, then another one in the future?

MonSaveHelp

julieb1987 wrote: »

Are you going to be paying any of the mortgage or is your partner paying for it all? If I was paying part of the mortgage I'd want my name on the house or else she could kick you out and you have nothing!

I suppose I will be paying something towards it. That can be in terms of rent and I can get a AST rental agreement which prevent sudden eviction.

DRP

MonSaveHelp wrote: »

I suppose I will be paying something towards it. That can be in terms of rent and I can get a AST rental agreement which prevent sudden eviction.

if your partner (the owner) is living at the property , you will be a lodger rather than a tenant - you cannot have an AST so very little protection (if any) from being chucked out.