Odd question! - Need Expert Advice

tpowell

Hi there,

Bit of an odd question I could do with some expert opinions on!

I’m currently living with my long-term partner in a house valued at around £130k, we are in the process of decorating it head to toe at the moment with the aim to sell it – which is likely to take 2-3 months. The house is in her name only and she has owned it for 10 years on her own and built up good equity. The mortgage is through Nationwide and is a variable rate.

I’ve saw a house I really like valued at £200k and would like to buy it, however, it’s going to sometime before my girlfriend’s house is decorated and ready to go on the market. My worry is that the house I like will sell before we are ready to put an offer in.

So… I have an idea and need to know if it’s a good and practical or not! Firstly, let me say, I have never owned a property, so will be a first-time buyer (assuming no stamp duty?). Could I get a mortgage out in my name only and buy the house (might be able to make a good offer as I would have no chain). Then once my girlfriends house sells, could I add her name jointly to the mortgage and move all of her equity over to the new property?

Not sure if this is a possibility, and if so, if it will end up being considerably more expensive?

Thanks for your help in advance!

Thrugelmir

Unless you can afford to purchase the property in your own name now. Then the idea will have no traction.

Why wait 2-3 months to market your partners property? If there's a property that you wish to purchase.

tpowell

Thrugelmir wrote: »

Unless you can afford to purchase the property in your own name now. Then the idea will have no traction.

Why wait 2-3 months to market your partners property? If there's a property that you wish to purchase.

I can put around 15% of the asking price down as a deposit on my own, is that enough?

[Deleted User]

Impossible to say without knowing if you can afford it.

You haven't mentioned any sort of an income.

tpowell

Deleted_User wrote: »

Impossible to say without knowing if you can afford it.

You haven't mentioned any sort of an income.

I should be able to get £200k mortgage without any problem, I have a steady, long-term and good paying job.

Would there be more solicitor fees than usual doing the buying of the new and selling of the old separately?

ACG

If your affordability stacks up, that should be fine.

Once everything has gone through you would need to do a "Transfer of Equity", you would also need to apply to Nationwide to do this. Costs would usually be no more than around £500 for the solicitors but you would also then become liable for stamp duty. As you are a first time buyer, you are exempt, but once your partner is not. Once she goes on it, stamp duty would be payable.

Xyzzy

ACG is quite right, although it wouldn't put you in any worse position than if you had gone with plan A. I'm assuming that once her property sells you's intend to pay the equity off the mortgage? Bear in mind that with most mortgage lenders you can repay only up to a certain amount before paying Early Repayment Charges- usually 10% of the outstanding mortgage. You may be able to find a deal with no ERCs but they're not that common, something to consider

getmore4less

I’ve saw a house I really like valued at £200k

if your partner buys in later at £100k 50% then her SDLT assessment will be very low.

Your best choice of product will depend on how you want to structure the ownership and how much money she has to put in.

One option is you get an offset mortgage for 85%, then when you partner cashes in her house she pays you 7.5% in cash to cover her share of the 15% deposit and puts the rest in the offset account

You work out your payments to make it equal and sort out the mortgage/ownership to joint later.

there are plenty of other no ERC options available

what will be best depend on the full details for income affordability and her cash pot.

Another question to ask yourself is could you get a much better place if you waited perhaps somwhere that avoids another move.