Long term boyfriend buying into my flat..?

greeny-babe

Just wanted some advise. I have started the bug of wanting to be mortgage free. Anyway I have a flat thats worth approx 170k and 128k loan. I have been with my boyfriend for 3years and we are going traveling together next month for just over a year. I currently rent my flat out and have a tenant for the next year.

He has a fair amount of money saved over and above what we need for saving circa 35K. It seems silly that he has all the money in a savings account when he could buy into my flat and get the mortgage paid off as quick as possible... because we are going traveling he wont have time to buy a place of his own so the money will sit in his savings for over a year.

I have a cap of 10% over payment aswell. Would it be in our best interest for him to buy into the flat? and how do you go about making it legal.

Thanks

edinburgher

Wouldn't you need to remortgage?

If I was in a similar situation, I'd expect there to be a legally binding agreement in place beforehand with respect to who owns what %age of the property in the event of a relationship breakdown. Your current equity is higher than his savings, you'd have more to lose if there was an equal split of the property value.

greeny-babe

Well we wouldnt do it as a equal split just so he owned a %. How do we approach about making it legal?

Maybe his best to just invest the 10% over pay approx 12k. and own a small percentage. I have only just remortgage and have a fixed rate for 2years.

Plus if he pays in i would have maybe reached the 40% loan to value for when my deal ends and i will get a better rate.Again saving money.

Is this benifical to me in the long run? Seeing as i paid all the initial fees. Or will i make that back just by paying it off quicker?

edinburgher

I don't think you can without remortgaging with both your names on the mortgage + a separate agreement. You're probably better asking on the actual Mortgages board, this board is more general in nature.

As for the savings - use the free mortgage calculator to play about with different choices. Chances are you will save money, but you'll need to make a few educated guesses re. likely mortgage rates/fees etc.