How do I protect my Investment when I am not on the Mortgage or Title Deeds?

Road_2

Hi,

Myself and my partner's application for a joint mortgage was declined on account of my credit rating. After exploring all avenues available to us we decided the best option was for my partner to obtain the mortgage in her name only.

The lender and our solicitor has said it is not possible to have my name on the land registry title deeds as I am not on the mortgage.

How do I protect my investment in our new property in this situation. I am not legally a joint tenant or tenant in common. We are buying in England, we are not yet married and have made unequal contributions to house deposit.

Are the agreements made between us stated in the title deeds, or do I need a deed of trust written separately? Is a Deed of trust the appropriate solution in my situation?

On a separate issue, does a deed of trust imply a trust of land and will this allow me to file a Form A restriction? Am I allowed to put a restriction on the land registry if I have signed a consent to mortgage form?

kingstreet

Put a charge on the property after completion, if the lender will allow it?

HappyMJ

First option..get married...or don't invest in the property at all. Being unmarried I would not advise you to buy together at all. Allow your partner to buy it, pay it off and pay for any improvements and all you pay for is half the bills and a token amount towards your lodgings (such as the local market rate for a room in a shared house). You could lend your deposit money to your partner and have your partner pay you back in monthly instalments over 5 years or so..(which you could then use towards bills). Your partner would own the property in full and have a debt to you. After many years (6 to clear any bad debts from your credit record) and your credit rating now being perfect and having some savings saved up you could then offer to buy half off her at the then market rate and have an equal investment in the property. She can then use that to pay a chunk off the mortgage if she wants or could invest it for herself.

Thrugelmir

If you are not named on the mortgage. The lender will ask you to sign a declaration to the effect that you have no financial claim on the house. So any subsequent legal arrangements made will in effect be null and void.

Are you sure that your partner can obtain a mortgage in their own right? What's the issue on your credit file.

kingstreet

As an over-17 occupier at the date the mortgage starts, you will be required to sign a consent to mortgage form, removing the possibility of an implied tenancy being created if the lender ever takes repossession action against your partner.

This has nothing to do with your rights regarding payment of part of the deposit. As I said, a charge over the property would be the smartest move, although a declaration of trust may be an alternative.

Building_Surveyor

Sounds like a risky investment to me. Will you be contributing to mortgage payments and bills too?

getmore4less

put your agreement into words and post it here to get any comments on things you have not thought about.

Most people and many solicitors get them wrong first time they try to do agreement on contributions and equity and getting money back.