Tenants in common, but one mortgage-free?

Ali.87

Hello 👋
I've recently bought a home with my partner. We're 'tenants in common' and putting in everything 5050... deposit, mortgage,  etc. However,  I'm lucky enough to own my old house outright. It's approaching sale, and my hope was to pay off 'my half' of the mortgage with the sale proceeds to go back to being 'mortgage free'. (Maybe that's selfish,  but I put a lot of effort into being debt free!)
Obviously we've no plans on breaking up, but given we are unmarried and I'll have 50% equity in the house compared to his 10%... there's a nagging voice in my head telling me to document it somehow. 
Is it as simple as calling our mortgage provider and asking them to change the mortgage to a single name at the point I drop in the money? Or do we have to get solictors involved? If the latter,  what kind of document do I need?
Any advice and/or experience greatly appreciated. 
Thanks, 
-A 🏡

unforeseen

The mortgage is a joint mortgage, nothing to do with how you registered the house.
You are both jointly & severally responsible for the mortgage. 

davidmcn

How would "your half" of the property be mortgage-free? Do you think that if the lender repossessed, they'd somehow manage to split the house down the middle and let you keep your half?

Thrugelmir

Before paying off 50% of the mortgage. Consult a solicitor and have a Declaration of Trust drawn up. This will legally determine how the net proceeds upon the sale of the house will be divided in certain circumstances. Your partner will also need to seek independent legal advice to give the document validity. Straight forward exercise that many unmarried people do every week. 

getmore4less

If you bought at 90% LTV and are now able to to do 55% there are probably considerable interest savings available.

What sort of mortgage if fixed are you going to have ERC?

If you knew you were selling and have capital there were options like offset and ERC free trackers that would have facilitated  a simpler transition.

MWT

Ali.87 said:

... and my hope was to pay off 'my half' of the mortgage with the sale proceeds to go back to being 'mortgage free'. (Maybe that's selfish,  but I put a lot of effort into being debt free!)

You need to make sure you understand the impact of any penalties in the terms of your mortgage for such a large repayment and you really should complete a 'Declaration of Trust' to cover the split of the equity as previously suggested, but you will not be 'mortgage free' and you will not be able to have your name removed from the mortgage.

You obviously could stop contributing to the monthly mortgage cost at that point, but you will remain jointly liable for the payments should anything go wrong...

Ali.87

davidmcn said:

How would "your half" of the property be mortgage-free? Do you think that if the lender repossessed, they'd somehow manage to split the house down the middle and let you keep your half?

No. Not at all. And fully expect that, were anything to happen to my partner's job, I would be liable for repayments.
My question is, how can I put a block of money into the mortgage and document it appropriately.

Ali.87

Thrugelmir said:

Before paying off 50% of the mortgage. Consult a solicitor and have a Declaration of Trust drawn up. This will legally determine how the net proceeds upon the sale of the house will be divided in certain circumstances. Your partner will also need to seek independent legal advice to give the document validity. Straight forward exercise that many unmarried people do every week. 

Ah perfect, that'll be what I need - thank you!

Ali.87

getmore4less said:

If you bought at 90% LTV and are now able to to do 55% there are probably considerable interest savings available.

What sort of mortgage if fixed are you going to have ERC?

If you knew you were selling and have capital there were options like offset and ERC free trackers that would have facilitated  a simpler transition.

Offset was questioned, but a tracker (with unlimited overpayments) suited our needs better. We're only locked for 2yrs, so can reassess when the dust settles.
 In all honesty, we had the Financial flex to buy the new one chainfree and claim the stamp duty back after so took it 😊 it probably overcomplicated this whole thing but it felt right for us at the time!

getmore4less

The benefits of offset would have matched  the unlimited overpayments (offsetting) and ring fenced your money in a sole account in your name so untouchable by OH and still give the same savings in interest.