Married couple buying a property with unequal deposit

babybrainy

We are buying a house with large deposit (40%) coming from sale of our current home which is in my husbands name only.
The mortgage for the new house will be in my name only as my husband is retiring soon so we can't take his income into account.
Can we still buy the house jointly even though he isn't on the mortgage? Or does the purchase need to be in my name with the deposit being gifted ?
I think we need guidance on protecting us both re who is puting in what. For context he lived in our existing house for about 15 years before we married so I think its unfair for the new house to be in my name alone so can our solicitor draw something up?
I just want to be in possession of some facts before we go to the solicitor.
Many thanks,

SmashedAvacado

most people in your situation would choose to own as joint tenants

typically both names would be on the mortgage if both people owned but you can have a mortgage on that basis even if the lender only takes one person's income into account

SmashedAvacado

This bit "I think we need guidance on protecting us both re who is puting in what" confuses me though. are you planning on getting divorced? Do you not consider your joint assets to be joint assets?

babybrainy

Not planning to get divorced! �� I just think I’ve pushed for this new house and am worried it could be perceived that I’m wanting all the assets in my name and if the shoe was on the other foot I’d be nervous as who knows what can happen down the line. I just want to be fair and upfront.
If he was to be on the mortgage would he be jointly liable for the debt as we need to avoid that .
Thanks for your reply!

Pixie5740

babybrainy wrote: »

Not planning to get divorced! �� I just think I’ve pushed for this new house and am worried it could be perceived that I’m wanting all the assets in my name and if the shoe was on the other foot I’d be nervous as who knows what can happen down the line. I just want to be fair and upfront.
If he was to be on the mortgage would he be jointly liable for the debt as we need to avoid that .
Thanks for your reply!

Yes, if you have a joint mortgage then you each have joint and several liability for the entire debt. Have you spoke with a mortgage broker yet as not every lender likes one spouse named on the mortgage but not the other? The fact that you want to protect the money for the deposit by giving him some kind of interest in the property which he will be living in but not named on the mortgage will reduce your pool of lenders even further.

Grezz24

myself and my wife have applied (and been approved) for a mortgage taking into my account my salary only.

Its a joint application however with us joint owners of both the mortgage and the property.

gingercordial

If you were to get divorced a judge would look at a fair divide of all assets regardless of whether or not they are in sole or joint names. It would be the same as if one of you had a big pot of cash in an ISA (which can't be in joint names) - that wouldn't stop it being taken into account in the divorce. So there is no chance of you being able to run off with the house by only having it in your name.

(For completeness, this might be different if divorcing after only a short marriage - have you been together less than five years?)

However for extra security your husband could do a "registration of matrimonial home rights" at the Land Registry to stake his claim officially, if he really felt the need.

Wicked_Lady

If the reason you are worried about buying as joint tenants is that one of you would be left to pay off the remainder of the mortgage in the case of one of you dying then I seem to remember we used to have a mortgage protection policy for that situation.

Is that no longer the case? Ours would have paid off the remaining mortgage if one of us died whilst it was still in place.

Or is this covered by Life Insurance these days?

TBagpuss

Wicked_Lady wrote: »

If the reason you are worried about buying as joint tenants is that one of you would be left to pay off the remainder of the mortgage in the case of one of you dying then I seem to remember we used to have a mortgage protection policy for that situation.

Is that no longer the case? Ours would have paid off the remaining mortgage if one of us died whilst it was still in place.

Or is this covered by Life Insurance these days?

Surely leaving Husband off the mortgage and deeds wouldn't help anyway. The estate would have to pay off the mortgage if OP died, and OP would have to pay off the mortgage if she were widowed.

OP, you have a few options:

1. Have both the house and the mortgage in joint names and own as tenants in common. This should be possible even if the mortgage is based on your income alone (or primarily). Talk to your mortgage adviser.
This option is probably simplest for inheritance planning
- if one of you dies, the other would automatically be entitled to the house (subject to the mortgage)

2. House and mortgage in your name, separate declaration of trust setting out your husband's beneficial ownership.

3. House and mortgage in your name, not additional documents (no different that the existing situation where everything is in his name, after all)

As you are married, you would have a claim in relation to the current property i you were to divorce, and if a new house was bought in your name, he would have a claim to that.

How long have you been together for? The longer it is, the less relevant it would be, if your were to separate, that he owned the old house before you married.

What do you want to achieve? equal shares, or something else?

Red-Squirrel_2

babybrainy wrote: »

Not planning to get divorced! �� I just think I’ve pushed for this new house and am worried it could be perceived that I’m wanting all the assets in my name and if the shoe was on the other foot I’d be nervous as who knows what can happen down the line. I just want to be fair and upfront.
If he was to be on the mortgage would he be jointly liable for the debt as we need to avoid that .
Thanks for your reply!

You're married, presumably you've been married a fair few years?

In the worst case scenario of a divorce it doesn't really matter whose name the assets (or any debts) are in, they belong to the marriage, to you as a couple.

Mojisola

TBagpuss wrote: »

Have both the house and the mortgage in joint names and own as tenants in common.

This option is probably simplest for inheritance planning
- if one of you dies, the other would automatically be entitled to the house

The house would have to be owned as 'joint tenants' (where both owners own all the house) for this to happen.

If a couple were 'tenants in common', one owner could leave their share to someone other than their spouse.