Complicated purchase and legal situation

Jamesrc

Hello,

I'm looking to purchase a property off my mother, currently on a buy-to-let mortgage of 120,000.

The property value is 310,000.

My credit rating is too poor to qualify for any mortgages of a decent interest rate (and I fear even the back street lender may struggle).

My partner has an excellent credit rating and can raise 185000 (including 50000) deposit.

The remaining money on top of the mortgage contribution would be paid in monthly instalment to my mother.

Fianc!e salary: 27,000
My salary: 39,000

What would be the implications in terms of house ownership - could we be joint owners on the deeds, or would this have to be something arranged in a separate legal document between us.

We would of course have to prepare for all eventualities, and therefore what would need to be in the legal agreement.

And in terms of selling the house on what should be covered?

Thanks for your advice

G_M

If mortgage is in name of partner, property will need to be in name of partner.

If partner can raise 185000 I see no difficulty paying off the current £120K mortgage. Is the intention for partner to pay mother 185 or 120?

"The remaining money on top of the mortgage contribution would be paid in monthly instalment to my mother." Sooooo... how much will be paid in installments? Over what period? With/without interest?

Who will pay the instalments? You? Partner? Shared?

What guarantee does mother have that these installments will be paid? What if (god forbid) you and partner split up. Partner stops paying but house is in her (I assume 'her'?) name.

What if one or both of you lose jobs? Wgar guarantees does mum have of payment? I'd suggest a 2nd Charge n the property in her name.

As for your rights to the property, hmmm.. you're not on the mortgage so not on the Title so... err... none!

Maybe a loan, fully documented? ie Partner owes you £X in cash being % of the value of the property, representing whatever you've contributed?

DandelionPatrol

G_M wrote: »

What if (god forbid) you and partner split up. Partner stops paying but house is in her (I assume 'her'?) name.

Correct, 'her'. https://forums.moneysavingexpert.com/discussion/comment/68790324#Comment_68790324 refers

I suggest that for this partner and mother should own the house Tenants in Common [defined percentages], assuming partner and mother together are good for the mortgage. James, you should set about getting your credit record sorted and build up savings. Then when your credit is good again, you and partner remortgage to buy out mother.