Single Homeowners: Saveguarding your asset against future Relationship Breakdown

marathonic

Angelicdevil wrote: »

In terms of my deposit, my parents put a 2nd charge on the property that in event of sale/loss etc that money is ring fenced to them - after the mortgage company get back their share first, obv and assuming there is anything left.

I assume the 2nd charge was done as the parents provided the deposit - as opposed to being put in place with future relationship breakdowns in mind.

Regardless, this appears like a mortgage that may have been obtained quite a few years ago - I think that, today, it's quite difficult to obtain mortgage approval where a 2nd charge like this is required.

Angelicdevil

No, it was done purely to protect my assets in the event of a relationship breakdown. My father is very forward thinking.

And no, the mortgage was obtained last year. It's not difficult at all, there are some lenders that won't but from my experience (last year) the majority will.

BitterAndTwisted

I'd be truly insulted and reconsidering my options if a partner asked me to sign some disclaimer before I moved in.

The easiest way not to put your equity at risk is to share the CTax, utility bills and food costs and absolutely nothing else. No contributions towards improvements or maintenance, no bills in the other person's name, no joint financial products, no joint bank account and nothing that could later be construed as rent.

lessonlearned

Interesting questions and answers.

I think it is absolutely vital for people to protect their assets and to take all reasonable and legal precautions necessary.

I am furnishing my sons with deposits and I shall definitely be consulting with my solicitor the best way to do this.

I do not think it "unromantic" in the slightest. One has to be practical and realistic.

I have been happily married for over 30 years and can trust my partner with my life and with my money.

Unfortunately relationships do break down and sometimes one of the partners can get the sticky end of the bargain.

I see nothing wrong with a little pre-planning.

Prepare for the worst and hope for the best.

Excited13

I bought my first property with my soon to be husband (the wedding was booked six months later) and my deposit was a LOT larger than his. I was stupid and we went as tennants in common meaning he was entitled to half. Fast forward 9 months and I found out he had lied about the source of the deposit and a number of other things. Finally everything came to a head over Christmas and I chucked him out. We then went through a messy and lengthy divorce where he got half of the house and the car.

Before anyone suggests I rushed in we had been together 4 years and lived together for 2. I'm now buying a house on my own now but it makes me very wary about moving someone in in the future without some kind of legal document. I've lost everything once before and I'm much wiser and cynical and I will prepare for the worst.

seriousDFW

Goodness, I thought I was a cynical person but I'm not so sure anymore!

Rachylou1981

I am a homeowner (of over 10 years) and my boyfriend is younger and rents with a friend. We don't live together. I have always said that in the event I ever moved in with a partner then I would put a clause in to protect my money should I ever sell up and move on with him. Luckily he doesn't want to live in my home so I don't think we will have the issue of him paying towards it at any point. However, I don't even know if I will make a profit on my house and if not then that's my deposit for anywhere new gone and it makes it a whole different ball game where finances are concerned. I currently don't have any savings (just about to start).

Luckily we have discussed this and we both think it's fine to protect any money we each put into a new home, if its not the same amount.

I have lots of friends that have ended up in lots of debt/bankrupt or even left with nothing after splits and I don't intend on going down the 'that won't happen to us' way of thinking.

marathonic

The negative equity thing is an interesting one. Although I shouldn't find myself in that situation due to the level of deposit paid, if a partner pays towards a mortgage/home improvements, where do they stand if the house is worth less than the mortgage outstanding? All very complex stuff....

Rachylou1981

marathonic wrote: »

The negative equity thing is an interesting one. Although I shouldn't find myself in that situation due to the level of deposit paid, if a partner pays towards a mortgage/home improvements, where do they stand if the house is worth less than the mortgage outstanding? All very complex stuff....

There are lots of things to think about. Is it fair of me to say that if I make £10,00 profit on my home then that money is mine and not my partners but if I make £10,000 loss then the debt is for us to share/add on to the new mortgage of the house we get together? Nope, its not fair. It also gives a complication if I say I can't move because of my finances and won't let him help/he won't or can't help. I haven't really given much thought to it really except now I have to because we do plan to move in together (early stage discussions).

zzzLazyDaisy

I have my own home. It is a little different in my case, maybe, because it is adapted for my needs (I'm disabled), but the principle is the same.

If I ever move anyone in, it would be on the clear understanding that they contribute only to the food and utility bills and nothing to the housing or maintenance costs. As the law currently stands, that is sufficient to prevent them acquiring a share in the property.

If he is a reasonable earner, that will leave him the money he saves on rent to treat me to flowers, holidays, diamonds, that sort of thing...

See, I have it all worked out - just have to find the man to go with the plan!

;-)