Adding a partner to title deeds

luvly_jubbly7

I have a mortgage that has 14 years of its term to run, I have approximated 50% equity. My long-term partner has recently moved in with me and I would like to add her to the title deeds. I have a few questions.

By doing this I assume she would need to be added to the mortgage? My existing deal runs out mid 2025. Should we wait until then to do the changes or will a mortgage provider allow her name to be added mid deal? Would a mortgage provider charge me to change the mortgage agreement by adding my partner on?

I am considering a trust deed to protect my equity what would be the approx. costs in Scotland to set this up? To do this I would need an up to date valuation, who would do this mid mortgage?

If we were to sell this house and buy in future would she still be considered as a first-time buyer for LISA purposes?

K_S

@luvly_jubbly7 Yes, generally speaking, the names on the deeds will need to be on the mortgage as well. The mechanics and eligibility might differ across lenders, but generally speaking lender will have a clear process for the transfer of equity. For an idea of what it entails please see one lender's example here https://www.accordmortgages.com/products/transfer-of-equity/index.html

You don't need to wait till the end of the current fix, but if you did it would probably save a bit of cost and hassle.

Once her name is on the deeds, she loses her FTB status.

luvly_jubbly7

K_S said:

@luvly_jubbly7 Yes, generally speaking, the names on the deeds will need to be on the mortgage as well. The mechanics and eligibility might differ across lenders, but generally speaking lender will have a clear process for the transfer of equity. 

You don't need to wait till the end of the current fix, but if you did it would probably save a bit of cost and hassle.

Once her name is on the deeds, she loses her FTB status.

Thank you for your reply.

To protect my equity am I correct in trying to arrange a trust deed or am I looking at the wrong thing?

jackieblack

If you want to protect your equity, it’s probably better/easier just to not add her to your deeds/mortgage in the first place 🤷🏻‍♀️

Thrugelmir

luvly_jubbly7 said:

K_S said:

@luvly_jubbly7 Yes, generally speaking, the names on the deeds will need to be on the mortgage as well. The mechanics and eligibility might differ across lenders, but generally speaking lender will have a clear process for the transfer of equity. 

You don't need to wait till the end of the current fix, but if you did it would probably save a bit of cost and hassle.

Once her name is on the deeds, she loses her FTB status.

Thank you for your reply.

To protect my equity am I correct in trying to arrange a trust deed or am I looking at the wrong thing?

Declaration of Trust is what you will need drawn up. 

luvly_jubbly7

jackieblack said:

If you want to protect your equity, it’s probably better/easier just to not add her to your deeds/mortgage in the first place 🤷🏻‍♀️

She has moved in and after a certain period of time regardless if she is on the deeds/mortgage she will be under common law which entitles her to half anyway, so I am looking for the legal way of securing my equity.

user1977

luvly_jubbly7 said:

jackieblack said:

If you want to protect your equity, it’s probably better/easier just to not add her to your deeds/mortgage in the first place 🤷🏻‍♀️

after a certain period of time regardless if she is on the deeds/mortgage she will be under common law which entitles her to half anyway

I'm not aware of there being any such principle. Do you have a source for this, I suspect something's been misunderstood. 

pphillips

luvly_jubbly7 said:

jackieblack said:

If you want to protect your equity, it’s probably better/easier just to not add her to your deeds/mortgage in the first place 🤷🏻‍♀️

She has moved in and after a certain period of time regardless if she is on the deeds/mortgage she will be under common law which entitles her to half anyway, so I am looking for the legal way of securing my equity.

That's not correct, the law will only imply a trust where there has been a common intention to create one because of:
1. Contributions such as payments towards purchase price, mortgage contributions or home improvements.
or
2. A detrimental reliance on a promise.
The law in Scotland is slightly different because of the Family Law (Scotland) Act 2006.

luvly_jubbly7

pphillips said:

luvly_jubbly7 said:

jackieblack said:

If you want to protect your equity, it’s probably better/easier just to not add her to your deeds/mortgage in the first place 🤷🏻‍♀️

She has moved in and after a certain period of time regardless if she is on the deeds/mortgage she will be under common law which entitles her to half anyway, so I am looking for the legal way of securing my equity.

That's not correct, the law will only imply a trust where there has been a common intention to create one because of:
1. Contributions such as payments towards purchase price, mortgage contributions or home improvements.
or
2. A detrimental reliance on a promise.
The law in Scotland is slightly different because of the Family Law (Scotland) Act 2006.

I think I may have misunderstood, So how in Scotland can I secure the money I have already paid in desposit, mortgage payments, house improvements etc. I am looking to secure what I have paid towards the house prior to my partner moving in so if anything was to go wrong I will have the money I have already contributed and a 50/50 split from the day we both start contributing.

pphillips

luvly_jubbly7 said:

pphillips said:

luvly_jubbly7 said:

jackieblack said:

If you want to protect your equity, it’s probably better/easier just to not add her to your deeds/mortgage in the first place 🤷🏻‍♀️

She has moved in and after a certain period of time regardless if she is on the deeds/mortgage she will be under common law which entitles her to half anyway, so I am looking for the legal way of securing my equity.

That's not correct, the law will only imply a trust where there has been a common intention to create one because of:
1. Contributions such as payments towards purchase price, mortgage contributions or home improvements.
or
2. A detrimental reliance on a promise.
The law in Scotland is slightly different because of the Family Law (Scotland) Act 2006.

I think I may have misunderstood, So how in Scotland can I secure the money I have already paid in desposit, mortgage payments, house improvements etc. I am looking to secure what I have paid towards the house prior to my partner moving in so if anything was to go wrong I will have the money I have already contributed and a 50/50 split from the day we both start contributing.

In Scotland, as in the rest of the UK, there is no such thing as common law marriage and no automatic right to claim anything on separation. However, in Scotland a court may make a capital sum order where one party has obtained an economic (in terms of capital, income or earnings capacity) advantage from the contributions made by the other and where the other has suffered an economic disadvantage.

The best way to secure what you have is don't get married and perhaps seek advice from a solicitor about getting a cohabitation agreement.