Mortgage in single name, property in joint names?

dharm999

We are in the process of buying a house in Scotland, but due to my wife being a fews year older than me, we are unable to have a joint mortgage. Can I have the property in joint names, even though the mortgage is only in my name? If not, then, I understand we can draw up an agreement on how the proceeeds from any sale of the house would be shared, that would protect my wife in case we split up. Does anyone have any experience of this? If so, was it straight forward? What was the rough cost of this?

Thanks

davidmcn

dharm999 wrote: »

due to my wife being a few years older than me, we are unable to have a joint mortgage.

Are you quite sure about this? Her income might not be taken into account, but that doesn't mean she can't sign up to a joint mortgage where the lending is based solely on your income.

G_M

Doubt any lender would permit this. How would they evict your wife from her lawful home if you default on your mortgage.

And if you are the sole owner, any entitlement by your wife would be down to divorce arrangements if that's what happened. If you simply sold, you could do what you want with the money. I guess you could draw up an agreement to give her X% but not sure how enforcible it would be. See a solicitor.

If you wife (an adult) were living in a home owned and mortgaged by you, the lender might require a declaration that she made no claim on the property - again to protect them in the rvent of repossession. See a solicitor.

dharm999

davidmcn wrote: »

Are you quite sure about this? Her income might not be taken into account, but that doesn't mean she can't sign up to a joint mortgage where the lending is based solely on your income.

The main isssue is that I am 23 years from official retirement age, and she is 9 years from her retirement age, so the issue was about the mortgage term being only 9 years and not 23 years if it was based solely on my age. Scottish Widows haven't been the easiest to deal with but hopefully I will get a positive answer next week from them.

dharm999

G_M wrote: »

Doubt any lender would permit this. How would they evict your wife from her lawful home if you default on your mortgage.

And if you are the sole owner, any entitlement by your wife would be down to divorce arrangements if that's what happened. If you simply sold, you could do what you want with the money. I guess you could draw up an agreement to give her X% but not sure how enforcible it would be. See a solicitor.

If you wife (an adult) were living in a home owned and mortgaged by you, the lender might require a declaration that she made no claim on the property - again to protect them in the rvent of repossession. See a solicitor.

Thanks, I suspected as much. We will go and see a solicitor to get something drawn up.

davidmcn

G_M wrote: »

Doubt any lender would permit this. How would they evict your wife from her lawful home if you default on your mortgage.

By relying on the consent she signed at the time the security was granted (and without such a consent being signed, you're not going to get a mortgage over a matrimonial home in Scotland). Not sure what lenders' individual policies are, but there's no particular legal issue. In theory she could apply to delay an eviction while she tries to arrange alternative accommodation, but so could spouses/partners who arrive after the mortgage is provided.

Thrugelmir

dharm999 wrote: »

The main isssue is that I am 23 years from official retirement age, and she is 9 years from her retirement age, so the issue was about the mortgage term being only 9 years and not 23 years if it was based solely on my age. Scottish Widows haven't been the easiest to deal with but hopefully I will get a positive answer next week from them.

Is your wife contributing to the deposit?

dharm999

Thrugelmir wrote: »

Is your wife contributing to the deposit?

Legally, yes. She doesn't work, so any savings we have are in her name, to save tax. She is gifitng the deposit to me, and had to sign a gifted deposit letter. I want to make sure she is protected in case something happened to our marriage.

davidmcn

dharm999 wrote: »

Legally, yes. She doesn't work, so any savings we have are in her name, to save tax. She is gifitng the deposit to me, and had to sign a gifted deposit letter. I want to make sure she is protected in case something happened to our marriage.

Either it's a gift or it isn't. If she wants her equity protected she should be on the title.

TrickyDicky101

Since OP and his wife are married, does it matter? She's already got him by the short and curlies so what further protection could be gained?

Yorkie1

A gift from someone who will not be on the deeds is often disliked by lenders as the gifter will obtain an interest in the property by doing so, and thus be harder to evict on a repossession if required.