Adding wife to mortgage to buy 2nd property
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boyrobot
Posts: 14 Forumite
My wife and I married a few years ago when I already owned a BTL property.
At the time we were renting the flat in which we resided. Since then, we have switched the single property I own to a residential mortgage and are living there.
As I've been working almost 10 years more than her I own a fair bit of capital in this property: about £180k, whereas she has only been working (in London) for a few years and has only some savings some in sole ownership and some in a joint account with me.
We are discussing buying a property in the Czech Republic where she's from and where we may move in the not-too-distant future. In terms of affordability, the easiest is for me to remortgage my flat as my LTV is now about 55-60% and I would be looking to move that to 80 or 85% as neither of us are currently residents in the Czech Republic and we're not particularly interested in a local mortgage there.
The Czech property would be worth less than half of the London property we live in.
Although she probably wouldn't be able to contribute half of the 2nd property, I am perfectly happy with us owning the 2nd property jointly but then I don't know how to handle the mortgage on the 1st property:
do I keep this as a single mortgage or would it be advisable to add her to the mortgage and to the mortgage deed? Should the shares matter?
The challenge there is also that I may be a tiny bit tight in terms of affordability to apply for the increased mortgage by myself anyway.
This is more to ensure that I am doing what's fair for both of us. RIght now I am obviously paying off a mortgage that she is not able to officially contribute to.
At the time we were renting the flat in which we resided. Since then, we have switched the single property I own to a residential mortgage and are living there.
As I've been working almost 10 years more than her I own a fair bit of capital in this property: about £180k, whereas she has only been working (in London) for a few years and has only some savings some in sole ownership and some in a joint account with me.
We are discussing buying a property in the Czech Republic where she's from and where we may move in the not-too-distant future. In terms of affordability, the easiest is for me to remortgage my flat as my LTV is now about 55-60% and I would be looking to move that to 80 or 85% as neither of us are currently residents in the Czech Republic and we're not particularly interested in a local mortgage there.
The Czech property would be worth less than half of the London property we live in.
Although she probably wouldn't be able to contribute half of the 2nd property, I am perfectly happy with us owning the 2nd property jointly but then I don't know how to handle the mortgage on the 1st property:
do I keep this as a single mortgage or would it be advisable to add her to the mortgage and to the mortgage deed? Should the shares matter?
The challenge there is also that I may be a tiny bit tight in terms of affordability to apply for the increased mortgage by myself anyway.
This is more to ensure that I am doing what's fair for both of us. RIght now I am obviously paying off a mortgage that she is not able to officially contribute to.
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Comments
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Any suggestion as to how to handle the purchase of a second property by extending my current mortgage but defining different ownership percentages between my wife and me?0
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Hi,
As you are married in a separation (divorce with financial settlement) your assets would be divided either a) as you both agree or b) as ordered by the court. I don't think how you choose to arrange your mortgages or the ownership of your property would determine this so it might not be worth worrying about too much.
If you mean what is best financially now, to get the mortgage you want, you need to see a mortgage broker for advice.
Tlc0 -
If your wife is now living in the property you previously owned she now has a financial interest. Presumably you have told your lender that she is now living there and not just switched it to residential?
Any split in ownership would need to be dealt with via a trust deed through a solicitor. In terms of taking out a new mortgage the lender will insist on both the property and the mortgage being in joint names. I don't think they will be interested in how this is split but you need to check with the solicitor about that. In terms of who is liable you will both be held jointly liable in the event of any defaults so you cannot split mortgage payments unequally between you officially. What you do unofficially though is up to you.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
When I remortgaged last year with Coventry I informed them that I was noe married and both of us lived in the flat but they did not ask further questions.
I did also mention to the adviser that I would maybe be looking to add my wife to the mortgage.
If I/we remortgage on my existing property we would effectively be buying the 2nd property cash as joint owners but for the existing property we would be looking to possibly split ownership as tenants in common.0
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