Buying into a partners house

K8y0

Can anyone help? I want to buy into my partners house and have a few questions. We have had the house valued at 220,000 and he has 164,000 left on the mortgage, so to move in I would have to give him half of the difference of 28,000 right? If he pays this straight off the mortgage the payments would go down right? As then it would be more affordable for me. But what if he doesn't want to pay it all off? Also would I need to be put on the title deeds and the land and/or anything else? I want it to be all equal as much as I can and have a written agreement. Who would do that? I contacted a solicitor but they weren't very helpful so far! He already has a solicitor but I feel I should have my own in case anything happens in the future.

SeduLOUs

Why only half of the difference? So you get half of a house that's worth £220,000 for £14,000?

Edit, I misread. So you're going to pay half of what he has already cleared and do the rest together.

I'm not sure you need your own solicitor. Just work out how you want the house to be shared and get the solicitor to sort it. Speak to a broker about the options for getting a joint mortgage.

K8y0

No the difference is 56,000 so I would give him 28,000

SeduLOUs

You need to do a bit of adjustment to your maths. If you give him £28,000 to repay half of the mortgage amount he has already paid before you came along that that money belongs to HIM. If he then pays it over to reduce the mortgage then it will be unequal again as he will have contributed £56,000 to the mortgage and you will have only contributed £28,000.

kingstreet

You would need to effect a transfer of equity, following approval of a joint mortgage.

The amounts are for you to decide between you and could be backed by a Deed Of Trust which would determine who got what in the event of a break-up with a break even, a loss, or a profit.

You should consider tenants in common, not joint tenancy. This means in the event of death, the deceased share passes into their estate. Some trust-written life cover will resolve this if the survivor wishes to purchase the share from the estate.

Separate legal representation would be suggested.

Caz3121

Once you have paid him the 28k you are on level footing with £164k mortgage between you (assume you will be applying for a new joint mortgage?) if he were to pay the £28k to the mortgage then in theory you would be getting half of it back in equity.
Alternatively if you paid £56k off the mortgage balance you would have £56k equity each

K8y0

but in effect he hasn't paid the 56,000 off as the house has gone up in value since he bought it?

captainpants

You will need to consider a lot of things (I know because I am going through the same thing).


First off, will you be added to the mortgage/get a new joint mortgage? If you just add your name to the title deeds and not the mortgage then your partner has all the liability and you have none. Also, did your partner put down a deposit when they bought the house? This is basically the equity they hold (plus whatever they have paid off the mortgage to date) so if you are to 'buy in' the better calculation would be to match whatever deposit they paid when they bought the house and 50% of what they have paid off the mortgage to date. Then you would have an equal stake of equity in the house.






If you want a written agreement (which you should get) then you definitely need your own solicitor. Your partner's solicitor will only act for your partner and if the time ever comes that you separate, you both need to show you had independent legal advice so that the arrangement you made is considered fair from the court's perspective. You might like to speak to a financial neutral - which is a financial adviser who could explain to you the different options you have and it's cheaper advice than a solicitor. Then once you have agreed with your partner on which financial option you are going to take, you need to get a solicitor to draft a cohabitation agreement or deed of trust and get it checked by a solicitor who just works for you. It won't be cheap but it will save so much money and time in future if anything doesn't work out. Although I hope it does!


When my partner moved in we drew up a cohabitation agreement for a year which stated that he would pay 50% towards the mortgage and be entitled to 50% of the increased value of the house from the date he moved in. Then when my mortgage term was up we applied for a joint mortgage and were tenants in common on the title deeds but with a Deed of Trust that allowed a financial split to reflect the difference of equity we both held in the house.


hope that helps.

getmore4less

K8y0 wrote: »

Can anyone help? I want to buy into my partners house and have a few questions. We have had the house valued at 220,000 and he has 164,000 left on the mortgage, so to move in I would have to give him half of the difference of 28,000 right? If he pays this straight off the mortgage the payments would go down right? As then it would be more affordable for me. But what if he doesn't want to pay it all off? Also would I need to be put on the title deeds and the land and/or anything else? I want it to be all equal as much as I can and have a written agreement. Who would do that? I contacted a solicitor but they weren't very helpful so far! He already has a solicitor but I feel I should have my own in case anything happens in the future.

if you want to buy 1/2 the house you need to find £110,000.

£28k cash and paying 1/2 the mortgage £82k would do that.

They get to keep the £28k.