Unmarried couple - One person mortgage?

martilostri

Hi all,
My partner and I are looking to buy a more suitable house (in Scotland) in a range of price that right now we wouldn't be able to pay in full.
My italian parents will participate to the buy by gifting me 100k, which we would like to use as deposit. However, my parents' money comes with the clause that I shouldn't be tied to a mortgage. They believe in buying a house in full, in case of i.e. economy crash/unpredicted sickness and events, so that you are never left without a roof over your head, which is very understandable to be fair.
My partner and I are trying to find "loopholes" to still get a mortgage but giving me (and the money I put towards the house) some protection.
At the moment we are considering a mortgage with a single income (his, like many couples with a stay-at-home partner would do) or him getting the mortgage and me gifting him the money, while having written by a solicitor that I would own the percentage of the house that the deposit represents. I understand there are lenders who don't appreciate big "money gifts" from not-relatives, though.
Another issue would be finding the most practical way to make sure that in case of separation or him not being able to pay the mortgage anymore, I'd be getting back the money I put in (mainly the deposit). 
Considering always the worst cases of course, what would be the best way to protect the deposit money in case of inability to pay the monthly rate or separation?
Any suggestion will be wiiiildly appreciated.

Thanks,
Marti

[Deleted User]

you dont go on the mortgage then you dont go as an owner of the house on the title deeds.  If you want to be an owner of the house as well then it isnt even worth looking for loopholes without you being on a mortgage

After you are on the mortgage and a co-owner of the house then you can create documents to protect your deposit.  

Otherwise he can buy a house and you can gift him the deposit and secure your investment with a2nd charge.   You wouldnt be an owner of the house this way.  And its unlikely to be allowed by the mortgage company as its really a gift from your parents, not you.  

If they believe in buying a house in full to keep a roof over your head then giving their £100k to a 3rd party and you not being an owner of that house with any rights to live there seems to achieve none of their goals.

Thrugelmir

Forget trying to find loopholes that don't exist. Work with the system.  Protect your interests legally.  Very straightforward. 

emma_829

From a legal perspective there are so many issues with each option you’ve suggested. You’re going to struggle to find a solicitor that will advise all parties or a lender to proceed on any of your options as one party is always going to be taking the risk whether it’s you or the lender. In addition, lenders usually require an unequivocal gift and having conditions attached to the gift by your parents wouldn’t fit this criteria. I’d suggest running through the options with a property solicitor and getting official advice. However, it would be pretty complex and likely costly to have the documents drawn up even if it were possible, which I doubt. 

Meh123

I think this is a massive legal nightmare tbh, potentially not impossible but would be massively reliant on lender criteria, what your partner is prepared so sign and a whole host of legal issues. 

The catch with having a beautiful home (unless you’re a millionaire or incredibly wealthy 😂) is taking that leap of faith, working hard to pay the bills and taking on the risks of a mortgage.
Could you maybe just politely decline the deposit (as extremely generous as it is) and just get a joint mortgage with your partner and buy your home together? 

Gem_M90

I am in an unmarried couple and our new mortgage is in my name alone with a large deposit from my parents. Slightly different reason than yours, I could get a far better rate on my own than we would have with my partner on the mortgage as his credit history isn't great. 
He is not on the deeds to our house in any way, and there's no way of doing this either. To be included on the deeds to a house, all names on the deeds are then financially responsible for any outlying loan against the house. When his credit report improves in the next couple of years, I'll have him added to the mortgage, and then my solicitor can write up legal documents to say if the house is sold, im entitled to X amount more percentage of the equity. 
You could get a joint mortgage, use the 100k from your parents but have your solicitor draw up documents to say if the property is sold youre entitled to your 100k equity share and therefore essentially never losing your 100k gift unless the house dramatically decreases in value. 

MWT

martilostri said:

My italian parents will participate to the buy by gifting me 100k, which we would like to use as deposit. However, my parents' money comes with the clause that I shouldn't be tied to a mortgage.

Hard to see how you can get around that one as the lender is going to want to see proof that the gift is unconditional and your parents are going to have to give up their 'no mortgage' condition.

CSL0183

You will need to apply for a joint mortgage and have your name in the title deeds. 

Protecting your £100k is easy with a deed of trust / Minute of agreement registered in your favour against the Title Deeds. 

As an example, if you bought a £200k house, you would own 50% of the house from Day 1. The other 50% would then be split in half so you would effectively always own 75% of the house. However, if you are not contributing to the mortgage, your partner could argue that as he is paying the other £100k then he should be entitled to the full 50% too. (If it truly is him that is paying for the mortgage)

I don’t think there is any way to gift the deposit to your husband with a clause from your parents. They need to sign a document and that £100k needs traced for money laundering. (Their own bank accounts will need to be provided showing where the £100k has come from)