Shared Ownership - Partner moving in

Andybooth23

Hi there,
Myself and my partner are currently in the process of purchasing an SO house. However, due to my previous bad credit (used to be horrendous, improved a ton in the last 5 years), we have done the whole mortgage application just in her name. We are both eligible for SO as our household income is around 65k.

Due to this, all the paperwork is in my partners name and my name is not anywhere on any documentation. We are about to sign the final paperwork on the mortgage sent to us from our solicitors. There is a question on the paperwork which states:

 The only people who will occupy the property

after completion will be:

Name:
:Age:

Name:

Age:

Name:

Our plan is to get myself added onto the mortgage in a couple of years which is when I am advised my credit rating will be allowed. Would myself moving in be a legal issue with either the mortgage company or the HA on completion? I'm presuming the best way to go about it would be to notify them and to request an excluded occupier form accepting I don't pay for the rent or anything giving me a right to occupy the property?

All our reading so far (we have been researching this for approx a year) has suggested that as long as I don't claim a right and I'm not paying the mortgage or rent then this is all fine and legal as it's up to the owner who resides in the house. However, this question has rung a few alarm bells for us. I'm guessing it's still all fine as how are the HA/Mortgage company to presume peoples circumstances won't change with a 30 year mortgage! 

Any advice appreciated! 

Morrigan_2020

Are you putting any money in?

Andybooth23

Hello,

I will be in terms of the paying 50% of the mortgage costs, as seen as the aim is for me to be added to the mortgage within 2 years (although this will be via me paying for groceries, utillities etc) in terms of money going in for the deposit, it is a small deposit although this is paid for by my partner.

Andybooth23

Just to clarify, this is the final paperwork form that this is requesting this information.
My partner has been approved for the mortgage, had the surveyors and valuation done, this is our one week cooling off contract. I'm guessing if my name is suddenly added to the form now, we may encounter issues!

davidmcn

Has your existence really not cropped up in her discussions so far about her mortgage application or purchase?

Andybooth23

davidmcn said:

Has your existence really not cropped up in her discussions so far about her mortgage application or purchase?

Just with the mortgage broker at the start of the process. She is aware we are currently living together, we were quite open that the plan was not for me to be named but to potentially move in in the near future. She just advised that "that's fine, people's circumstances can change very quickly" - as much to suggest to proceed as we are.

The only other times it's come up has been on this final contract form as above, from our solicitor which I think is a general form the produce for the mortgage company (LBS). 

Andybooth23

Bump... if thats allowed! 

Sotts

Im surprised this is only coming up now.  If you're paying 50% of the mortgage this should have been taken into account on affordability.  I also think if you're living there but not on the mortgage you're classed as a dependent which again affects affordability.  What happens if you split up and you make a claim on the property?   
It may well cause a problem if you deliberately omit this information.
SO are really strict on this.

Andybooth23

Sotts said:

Im surprised this is only coming up now.  If you're paying 50% of the mortgage this should have been taken into account on affordability.  I also think if you're living there but not on the mortgage you're classed as a dependent which again affects affordability.  What happens if you split up and you make a claim on the property?   
It may well cause a problem if you deliberately omit this information.
SO are really strict on this.

Hello,

I feel I may of gotten a few things missed in translation from my end.

So my partner has been approved for the mortgage based on her income and expenses alone. She is eligible for the mortgage in terms of eligibility and is the only person named as responsible for the mortgage. It is her mortgage. 

Due to me being about 2 years away from being eligible to make a joint application due to previous bad credit from a long time ago, if we made a joint application we would not of been approved. The aim is for in 2 years time, for me to then become named on the mortgage (we will still be eligible as our household income then will be around 65k, so under the limit).

When going through the mortgage advisor/broker, the broker is aware we are currently living together and sharing rent at our current place and have been for a number of years. My partner informed that this is a single application in her name, although it may be a case of wanting to add me onto the mortgage and move-in in the near future. The broker said yes not a problem, peoples circumstances change.

Since then the valuation ,surveyors report, solicitors fee's and everything has been processed and complete.

Our aim was for my partner to complete on the contract and shortly after move-in date, our circumstances change, and I move in. Of course, I will be paying 50% of the mortgage, however this will be via paying for groceries and other things etc that add up to that amount. I accept that I have no right or claim in the property if something were to happen (which I'm happy with), and I'm guessing the best thing to do would be to notify the HA/Mortgage company informing them of this when it happens after completion and asking for an excluded occupier form if needed.

So in essence this is a single mortgage SO application in my partners name. She has been sent a form (from the solicitors on behalf of the mortgage company, a generic form they use) asking who will be living in the property after completion (bear in mind this is a 30 year mortgage, so they can't presume someones circumstances won't change). If she discloses just herself, then a month later her circumstances were to change and I were to move in as above (sign an excluder form etc) is this all okay? Or would be it be advised to disclose my name for the first time on this final form.

Thanks again!

TBagpuss

Its perfectly normal - the lender will need you to sign something to say that you accept your interests (if any) are subject to those of the lender - basically, that you will move out if they repossess.
As between you and your partner, you would be wise to have a declaration of trust drawn up to make clear that she holds as trustee for the pair of you - your claims would still be second to those of the mortgage lender but as between you and her would record that you both have an interest in the property. Otherwise, if you and your partner had a falling out then she can simply throw you out and you would have no automatic claim on the property.

If you are going to be contributing, whether by paying the mortgage directly or by paying the other outgoings to free up your partner's income to pay the mortgage, you should have a proper trust deed drawn up to make clear that you are gaining an interest in the property by doing so. 

davidmcn

Andybooth23 said:

She has been sent a form asking who will be living in the property after completion (bear in mind this is a 30 year mortgage, so they can't presume someones circumstances won't change).

That's immediately after completion (i.e. who is moving in with her) - not "after" for the next 30 years. So no need to declare you if you (genuinely) weren't moving in with her, but given you started this by saying "Myself and my partner are purchasing a house" I guess that isn't the case, so you should be signing.