Home Buying Solicitors letter stating equity query = ANY IDEAS

Splreece1978

Hi all, 

Just a quick query.

My partner and I have both been burned badly by previous partners financially and she and I have agreed that any home purchase comes with some sort of formal agreement from solicitors stating the amount we have put in.

Our situation is straight forward,.... i am cash heavy and she has great credit, so we want to buy a house, but to get the best interest rate, she is putting the mortgage only in her name and I am paying up to 50% deposit.

However this means that the house is in her name even though i have paid for half in cash.   Plus i will still be paying the remaining mortgage portion so likely i would own 75% ish.


It seems fiddly to do, however its sensible to have incase something does happen. we are both in agreement

does anyone know what i need to ask for from the solicitors?

Pixie5740

Splreece1978 said:

Hi all, 

Just a quick query.

My partner and I have both been burned badly by previous partners financially and she and I have agreed that any home purchase comes with some sort of formal agreement from solicitors stating the amount we have put in.

Our situation is straight forward,.... i am cash heavy and she has great credit, so we want to buy a house, but to get the best interest rate, she is putting the mortgage only in her name and I am paying up to 50% deposit.

However this means that the house is in her name even though i have paid for half in cash.   Plus i will still be paying the remaining mortgage portion so likely i would own 75% ish.


It seems fiddly to do, however its sensible to have incase something does happen. we are both in agreement

does anyone know what i need to ask for from the solicitors?

This doesn't sound sensible at all assuming you can even find a mortgage lender that is willing to go along with this arrangement when you clearly expect to have a beneficial interest in the property.

Joint mortgage, property owned as Tenants in Common, with a Deed of Trust drawn up explaining the equity shares and what is to happen in the event of a relationship breakdown would be a more sensible approach.

Slithery

Splreece1978 said:

Our situation is straight forward,.... i am cash heavy and she has great credit, so we want to buy a house, but to get the best interest rate, she is putting the mortgage only in her name and I am paying up to 50% deposit.

Not going to happen. Mortgage lenders won't accept both owners not being on the mortgage.

MrsBrush

This is a tricky situation, and I totally understand where you are both coming from having come out of a very bad situation which had heavy financial repercussion. My husband and I keep all of our finances separate for this reason, and as we have a solid relationship this is working for us. The property we are selling and the new one we are buying are legally mine, so we keep the day to day situation fair by me paying the mortgage and he contributes to the household for things like food, holidays and other things not directly related to the house. In fairness though, he has his former marital home rented out so our situation is different.

Speak to your solicitors, and you may wish to get separate advice for the contribution of the deposit to safeguard yourself. There will be legal agreements that can be made in this situation, and you will need some expert advice to reach a position you are both comfortable with. Are you planning to marry? If you are, then all of this could be included in a pre-nuptual agreement.

Splreece1978

Thank all. 

Looks like the way forward is to have partner as sole mortgage owner and me stated as interested party on agreement under the mortgage provider as otherwise my deposit is classed as a gift... Ive been told this is common to both protect money and prove cash isn't a taxable gift. 

This also means once paid in full. We can do transfer of equity to 50% each...

Pixie5740

Splreece1978 said:

Thank all. 

Looks like the way forward is to have partner as sole mortgage owner and me stated as interested party on agreement under the mortgage provider as otherwise my deposit is classed as a gift... Ive been told this is common to both protect money and prove cash isn't a taxable gift. 

This also means once paid in full. We can do transfer of equity to 50% each...

Told from where and since when was there gift tax in the UK? 

Slithery

Splreece1978 said:

Looks like the way forward is to have partner as sole mortgage owner and me stated as interested party on agreement under the mortgage provider as otherwise my deposit is classed as a gift...

Stll not going to happen. Mortgage companies also usually don't accept loans from someone that is also wanting to live in the property.
As I said in my earlier post - if you want to be joint owners then you both need to be on the mortgage.