Advice

Jojomissy

I live in a house with my partner which I have owned for 20 yrs and he moved in around 7 yrs ago contributing to the mortgage etc.

We have saved up enough to pay off the mortgage but it made sense to put the money into santander 123 etc due to my tracker rate being low but are now considering paying off the mortgage and putting my oh onto the deeds.

We have now decided to move home and should have around 50% ltv for the houses we are looking at from selling this house. My oh is the only one working due to my very ill health but he has a decent salary.

Is it sensible to pay off the mortgage in this current house and put him on the deeds to make the mortgage on the next house easier.

It has been a long time since I did a house purchase so I am a little out of touch.

Thanks

Jojo

kingstreet

Jojomissy wrote: »

Is it sensible to pay off the mortgage in this current house and put him on the deeds to make the mortgage on the next house easier

No difference to make the extra cost worthwhile that I can see.

Jojomissy

So because this current house is in my name but the mortgage would possibly be a sole mortgage in just my oh's name would I need to do a transfer of equity?

Thanks for replying.

amnblog

You need to get some legal advice on this, it does not work as you seem to be thinking.

Jojomissy

Ahh...ok. Nothing is straightforward.

I hoped if I added him to the deeds of this house and the house was mortgage free he would be able to take the mortgage for the new house and use the value of this house as 50% deposit.

I didn't think it was wise doing a joint mortgage as he would be the only earner.

Thanks for your help

Thrugelmir

Jojomissy wrote: »

I didn't think it was wise doing a joint mortgage as he would be the only earner.

You'll need to be declared as a financial dependent on the mortgage application.

Your money is providing the deposit for the property. Are you willing to gift this to your partner?

Lenders may well have an issue with the "gift" from a related party. As it gives you a financial interest in the property.

In summary to protect your own interests, being named on the mortgage and therefore the deeds of the property is advisable.

kingstreet

You would pay to add him to the mortgage and for a transfer of equity for him to become joint owner.

Then you would sell and buy again wasting all that expense as the existing mortgage will be repaid from the sale proceeds and a new application will be required for the new purchase.

Jojomissy

Hi Kingstreet

He wouldn't be added to the mortgage as we have enough in savings to pay the mortgage off so it would be just us both on the deeds.

Im not too worried about transferring my equity. We have both worked hard to be mortgage neutral in this house. We have been together 10 years and he is shortly to donate a kidney to me so pretty secure.

I just want the next house purchase to be as simple as we can due to my declining health. We are only moving as the area has quickly declined and with idiots kicking doors in and police arriving numerous times a week I am not getting any rest which is making me worse. I just cannot live here anymore which is sad as I have lived here 20 years. We had £500 of damage yet again to our car and that sort of money could be used in a different house in a quieter area.

Thanks again for all your advice.