A few questions on adding partner to mortgage

bubblycrazy

Hi, I've owned my home for 5 years and have always overpaid. The remaining balance is £39500 with 30 years left on the term, but with overpayments it will be gone in 10 years. The fixed rate is almost up and I would like to fix again but lower my term because I'm reaching the amount where my overpayments will be over 10%.
My partner moved in a few months ago (been together 4 years) and since moving in contributes half of the bills. If I get him added to the mortgage we will put an agreement in place to ensure that in a split we each get back a fair amount each. I worry that currently if something were to happen to me he would not be able to stay in his now home.
When I have remortgaged in the past I've always stayed with the same provider because of affordability checks. I now only earn about £10000 per year.

How much would we have to pay to remortgage and add my partner?
If we don't add him would a will/written agreement cover our concerns?
Would I be able to remortgage on my own with my wage and no other debt?
I have a 7 year old from a previous relationship and have shared care with ex (he claims child benefit), does this change any advice?

The offer I can get with current provider is 5 year fix for 2.53% no fee.
I like the hassle free option of staying with same provider however I'm sure I could get a better deal, and I really want to reduce the term.

getmore4less

What's the place worth? (LTV)
which lender
I would have thought with the overpayments you should be on a LTV that can get a better rate.

Is the partner already contributing to the mortgage?
Are they going to put in any cash?

you need to consider SDLT if he takes over ownership of some of the house.

ACG

How much is your parnters income?
If he is on a similar sort of figure it should fly through affordability.

If you switch lenders they will include free standard legals but you will need to pay for a transfer of equity which will be a couple of hundred pounds.

bubblycrazy

The mortgage is currently with Natwest, house is valued at £67000 so no SDLT and LTV is about 59%. He's contributing a set amount which is transferred to me monthly. It works out at about half the bills including mortgage. I've lost tax credits since he moved in and it equates to about the same amount.
His income is £22000. Will the couple hundred include everything needed to have it recorded as a fair split?
How long does the process take?

getmore4less

Natwest have better rates through brokers.

MissMollyJ

If you add him to the mortgage then my advice would be to ensure you have a legal document in place to ensure you get back the full equity as it is at the point he goes on the mortgage and then split any further equity 50/50, just in case.

bubblycrazy

Just to update and ask a few more questions.
We're in the process of remortgaging to Nationwide, 10 yr mortgage on a 5 yr fix at 1.74%.

We will be tenants in common and I think the best way to do it if we split is, I will get back the £25000 equity that is currently in the house, and everything after that will be split 50/50. Does this sound ok, anything missing?

We have had the solicitor forms through and I've been looking at the extra we will have to pay to get my partner added. Do we need a transfer of equity and a declaration of trust, or just one of these?

[Deleted User]

bubblycrazy wrote: »

Just to update and ask a few more questions.
We're in the process of remortgaging to Nationwide, 10 yr mortgage on a 5 yr fix at 1.74%.

We will be tenants in common and I think the best way to do it if we split is, I will get back the £25000 equity that is currently in the house, and everything after that will be split 50/50. Does this sound ok, anything missing?

We have had the solicitor forms through and I've been looking at the extra we will have to pay to get my partner added. Do we need a transfer of equity and a declaration of trust, or just one of these?

Transfer of Equity is the process to add him to the title and the mortgage
declaration of trust is the bit that sets out the financial agreement in event of split

sounds like you need both

bubblycrazy

Thanks, hmm I got told it would be about £300 extra for the solicitor but when I've looked those 2 things are £275 each. Are both parts needed or is there another way to do it?
The solicitor hasn't mentioned these yet they're just there in the list of extra charges which can apply to an application.

[Deleted User]

As you have a mortgage, they won't let you DIY the transfer of equity bit.

You could DIY the declaration of trust but it's not that much to protect a lot of money. If you get it wrong you will lose a lot more than £275 if the courts overturn your diy'd agreement

You could shop around for a better deal. The remortgage legals I use charges 499 for remo plus transfer of equity. How much is your basic legal work? Nationwide are giving £500 cashback on the remortgage I presume? I think £275 for declaration is pretty decent. I've seen them online for £180+vat but can't comment on the service you would get

bubblycrazy

We're using Nationwide's solicitor which is a £500 fee using the cashback, then anything extra is charged on top.