Lump sum in mortgage not in my name

Hi,

Hoping to get some advice! 

My partner owns ‘our’ house - has been paying off the mortgage and I have been paying rent for the ~5 years since we moved in together. I have a sizeable lump sum saved up (~£150k) which we have discussed just paying off some of the remaining mortgage…I was keen to join the mortgage as a named owner after a life of just renting (without impinging on what would be hers, so she would be covered if we ever broke up), but for a variety of reasons we have just stuck to me paying rent. The mortgage would remain solely in her name. The idea would be that when we move we’d half the mortgage going forward, though unclear how we’d use the equity/sale of existing property.

If I pay in the lump sum, am I at risk? Is this a wise thing to do without any kind of legal letter? We are very happy together but I want to ensure we avoid any potential headaches in the future!

Comments

  • You don't know what the future holds, i think it would be wise to have a conversation, together, with a solicitor once you've heard others' views.
  • You need to go on the property title as tenants in common (which means going onto the mortgage as well), along with a declaration of trust. Or get married. Why are you saying you want to keep it solely in your partner's name?
  • Brie
    Brie Posts: 9,333
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    The obvious risk is that you pay her the money, she puts it on the mortgage (or spends it elsewhere) and then kicks you out.  The more documentation you have the more secure your money is but I agree that this is time to get a solicitor involved.  It might be part of the conversation of the two of you having wills in place so that there's no confusion should anything happen to her - like her family wanting to kick you out.  

    Would her mortgage accept that size of a lump sum if she's mid term?  Or would she be looking to remortgage in which case it's a perfect time to add you in legally.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • ACG
    ACG Posts: 23,624
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    I think if she is reluctant to put you on the mortgage/deeds when you are putting in £150k, I would be reluctant to put in £150k. You might be very happy together but there is a reluctance there for one reason or another. 

    Thats not to say she is in the wrong. Having read this site over the years, it can get quite messy trying to separate assets etc. So it might not be a bad thing, but I would not be putting in £150k without some sort of reassurance. That is a life changing sum of money. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dunstonh
    dunstonh Posts: 115,721
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    If I pay in the lump sum, am I at risk
    Yes.  You are effectively gifting the money.

     Is this a wise thing to do without any kind of legal letter? 
    A letter may help in some respect but at the end of the day, if the other party doesn't have the money any more (lets say they go insolvent or get into debt) then despite how much legal action you take, they cannot give what they do not have.

    We are very happy together but I want to ensure we avoid any potential headaches in the future!
    Keep the money.  Your partner doesn't seem ready yet.  It is a big decision so don't push it.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Sistergold
    Sistergold Posts: 2,006
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    Money is money and you should not put your money where your name is not. Money causes problems. Whatever conversation you can not have now will not be possible once the money goes in. The only time to talk sense between two parties is when we all have what’s ours still in our hands. Get all things legalised before money changes hands. 
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  • Ksw3
    Ksw3 Posts: 328
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    I would wait until your next purchase not just financially but also because it would feel like it was both yours, I would worry about the dynamic and whether it would still feel like I was renting. 
  • Many thanks all - it seems like perhaps waiting until we move is most prudent…or getting married!
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