Tenants in common without partner being on mortgage.

rorrism

Hi,
Bit of a strange one here.  Last year my partner moved into my house (mortgaged solely in my name) and we would both like her to have a financial interest in the property.  Ideally this would be a tenants in common scenario but that is where I think the problem lies.  Her IVA ended in October 2018 and at present failed at opening a current account with the bank my mortgage is with.  As such I feel it would be highly unlikely we would be able to have her name added to the mortgage.  I currently have an LTV of 70% and would be looking at assigning her 1/3 of the equity.  I appreciate this sounds simple but in reality if messes up the LTV and also causes the bank no end of issues with regards to repossession etc. if the worst happens.
Does anyone have any ideas if there's anything we can do to allocate a portion of the home to her?  I appreciate with regards to death there is my will which can take care of these things but this doesn't cover in the event of breakup etc.  I just want her to truly feel that this is her home, that she can invest time and money into making it her home and also give her some confidence that she has security for her and her son.
Many thanks in advance for your help

pphillips

If you and your partner are married, then she will automatically have a financial interest in any marital property through matrimonial law. If you are unmarried then I believe there are two ways of achieving your aims.

The first way involves trust law, you can either create an express trust or an implied trust. The problem with an express trust is that it's likely to be expensive to set up and manage. The problem with an implied trust is it's not written down and therefore uncertain.

The second way involves the law of contract, which is a much simpler and less expensive option, both parties would need to enter into a cohabitation agreement that states what happens to the property in the event that you split up etc.

Unless you are getting married, then your first step would be to contact a solicitor to get the relevant document drawn up.

rorrism

pphillips said:

If you and your partner are married, then she will automatically have a financial interest in any marital property through matrimonial law. If you are unmarried then I believe there are two ways of achieving your aims.

The first way involves trust law, you can either create an express trust or an implied trust. The problem with an express trust is that it's likely to be expensive to set up and manage. The problem with an implied trust is it's not written down and therefore uncertain.

The second way involves the law of contract, which is a much simpler and less expensive option, both parties would need to enter into a cohabitation agreement that states what happens to the property in the event that you split up etc.

Unless you are getting married, then your first step would be to contact a solicitor to get the relevant document drawn up.

That's great thanks, I'll look into what you mentioned closer.  We're not married nor have any intention to wed so the contract sounds like the way to go.  I'll ask her to arrange an appointment with a solicitor for when I'm back home.

getmore4less

Why 1/3 of current equity, will that be a 10% in the property 
How have you come to that amount, is it financial interest through previous payments or a gift?

Has or will she be contributing to the mortgage?


. 

rorrism

getmore4less said:

Why 1/3 of current equity, will that be a 10% in the property 
How have you come to that amount, is it financial interest through previous payments or a gift?

Has or will she be contributing to the mortgage?


. 

She pays a small amount towards the monthly bills of the household, less than 1/3.  The equity in the property is purely through my deposit when purchasing the property and my payments until she recently moved in.  This isn't a case me selling her part of the house, it's about her having somewhere that she can actually think of as her home.