Changing joint ownership to mortgage in sole name

billybobba

I would value some advice on this - I feel like I am going round in circles here...:)My partner and I have been together for 10 years and owned our house together for 5. Both names are on the mortgage.We are currently set to move, and have £80k of equity which is going into the new house.This is my problem - over the past couple of years my employment situation has changed and I am in the first year of self employment with substantial unsecured debts and awful credit rating. To get the mortgage on the new house my partner is suggesting that the mortgage is solely in his name (as its pretty much a cert that I wont get a mortgage at the moment)However I am feeling uneasy about this. I have no worries about us splitting up, but what would happen if, god forbid, anything happened to him?? We have a daughter plus another baby on the way.The situation at the moment is that if anything happens to either of us, then the house transfers to the other joint tenant. However, if it is in his name - what happens then. I am concerned about the security of my family, plus my half of the £80k that goes into the new house.My partner has an ex wife and this is worrying me too in case in some mad legal clause she has some rights???Does any one know ifa) its possible for him to have his name on the mortgage , but to have joint names on the deeds?b) its possible to have any other legal document drawn up that protects me?c) anyother solutions??????Help would be greatly appreciated. thank you

mightymouse

Hi

I see another potential problem and it might be that I am reading too much into your situation.

What is the nature of your unsecured debts, how much are they and are any of them pressing for payment?

You mention an ex wife but you do not say if there are any children?(ex wife children)

A short and long term measure might be life assurance written under trust for you and the children.

My concern would be the equity that you have and is it at risk to the unsecured creditors (awful credit rating).

Is there any reason to presume that you are moving your equity out of reach of the unsecured creditors?

It might be ok to allow the mortgage to go into your partners name but without knowing your circumstances it is difficult to judge the outcome.

Also as 2nd applicant you might be accepted on the mortgage but not relied on for any credit scoring.

A will would help take care of you and your partners situation.

as I say I might be looking for something that does not exist so there could be a simpler solution.

If you make the equity safe then it will be there for your creditors should you default in making good your un secured debts.

billybobba

Thank you mightymouse. Sorry for the delay!No reason why I'm trying to hide the equity - I can just about afford to keep up with repayments, and so its not really at risk there.The previous marriage does concern me (and there are 2 children here) - and I am just simply very concerned that I am 'giving up' my rights on our home for which we have always split all payments 50/50I am considering a 'declaration of trust' lodged with our solicitors, plus as you pointed out a will

CLAPTON

i would think it most unwise not to have your name on the deeds.

you use the word 'partner' rather than husband which means you would have virtually no automatic rights to the house if he died...it would become his childrens' property as would the rest of his estate.

although a suitable will would help things you would be in a much stronger situation if you were joint owner (and of course married).

I would suggets you speak to a independent mortgage advisor and see what they can come up with.