Bringing my partner onto the mortgage

Schweffe

Hi all,

really hoping for some advice on this! I own around 75% of my house with the remainder still being paid off with a mortgage. I have been living with my partner for a few years and she is keen to get involved with the mortgage so that her money is actually going into something for her future in the unlikely event we break up. For info we are not married.

She does not have a lump sum to contribute, so i wondered if there's a way in which whatever she puts in every month essentially adds up. Say she paid half the mortgage payments for a year, then that amount would be her equity if we did split up after a year.

Having spoken to a solicitor they said they could only write up an agreement on a fixed percentage/amount, though I am cautious of doing this on the basis no lump sum is being paid in if that makes sense?

Very much appreciate any advice on this!

Thanks

lovemula21

Personally, I’d keep the house in your name rather than sell her half of it. If she wants to prepare for the future then she should look into various savings and investment vehicles. 

Does she have a pension?
Savings? Cash or Stocks and Shares ISA? 

A high interest regular saver may be a good way for her to get started with saving. Then once the pot builds up she can decide what to do with it. She may decide to buy her own property and rent it out. 

Newbie_John

Agree with above, if you already 75% in, you are able to pay for it yourself (as you've been doing for years) - then it's better if she invests elsewhere. If you split up - much easier to divide, if you don't then you'll both have savings to use rather than selling house and try to downsize..

Where to invest? Tax free pension with employer top up, ISAs, premium bonds.. there is many safe options.

Jemma01

It's such a hassle what you're trying to do. I don't know much about civil partnership and how the court system handles a split, but if you both split are you happy to sell your house to pay her share if you can't buy her out? What if she doesn't want to be bought out and wants the house?

I wonder if you have children how this will impact who takes the house? 

Also other things to think about, does the court system look at the household contribution as well? (That's bills and food and maintenance). E.g. If both of you are contributing equally to bills and food, or if she's paying most of the bills and food? Would she then be able to claim more contribution towards the house?

Like @lovemula21 said, she can invest in something else.

Schweffe

Hi everyone and thanks so much for the responses.

I do understand what you are saying in that this could be complex and easier for her to look at other investments. However, I can understand her point of view in that she is currently paying me a rent, which considering we have been living together for around 4 years had added up to quite a sum.

Because I've owned this house a while and we are committed as a couple, she doesn't have the opportunity to buy her own first house I suppose..? Well she could buy an investment, but I think there's also more of a sentimental meaning of sharing our house.

Thanks again for your advice.

BarelySentientAI

A solicitor can write any sort of deed of agreement that you like.  Fixed proportions only need to be used on the purchase/transfer documents.

Nothing wrong with a legal document that says "we agree that Ms X shall be entitled to 0.02% of the value of the house at 12 Acacia Avenue per month of documented mortgage contributions" with whatever caveats and extra conditions necessary to make it match what you want.

DullGreyGuy

Jemma01 said:

It's such a hassle what you're trying to do. I don't know much about civil partnership and how the court system handles a split, but if you both split are you happy to sell your house to pay her share if you can't buy her out? What if she doesn't want to be bought out and wants the house?

I wonder if you have children how this will impact who takes the house? 

Also other things to think about, does the court system look at the household contribution as well? (That's bills and food and maintenance). E.g. If both of you are contributing equally to bills and food, or if she's paying most of the bills and food? Would she then be able to claim more contribution towards the house?

Like @lovemula21 said, she can invest in something else.

A civil partnership is marriage in all but name however I think we can assume the OP is neither married nor in a civil partnership even though they only explicitly ruled out marriage. 

As a regular unmarried couple there is no automatic sharing of assets like there is with marriage/civil partnerships however if a party can show they contributed to the purchase or repayment of an asset they can stake a claim on. This is why most recommend those with a new partner moving in etc dont allow them to contribute directly to the mortgage or redecorations/improvements etc.