Mortgage Advice

[missmoneypenny1]

Hi

 

I would be grateful of any advise.

 

My partner and I are about to move in together, my partner has had to get the mortgage in his name as I am still trying to rebuild my credit history and I would not be accepted as a joint applicant at present.

 

I will be paying half the bills and mortgage etc, now my question is , what do I need to do legally to make sure if for any reason I split from my partner I am entitled to equal rights of the house if we ever needed to sell it?

 

I know I shouldnt be thinking like this, but I have to think of all options just in case and if I am paying half of everything then I would want half of everything if we ever needed to sell the house.

 

Do I just need tp make sure my name is on the deeds to the house or do I need a solicitor to draft some dort of agreement up?

 

I really havent got a clue! Thanks

[make them aktiv runners]

It pays to be careful, as no-one knows what will happen in the future.

 

If you do nothing then yes you will have a claim but it would be an expensive court case to prove.

 

The easiest is for your partner to sign a declaration of trust, basically stating that you get half after the mortgage/sale costs. It is also wise to word it in such a way that prevents you getting less if your partner suddenly increased the mortgage.

[missmoneypenny1]

hi

 

Thanks for your reply and advise.

 

Would I still need to have something drafted up by a solicitor or would I be covered legally by just having my name on the deeds of the house?

 

I have to make sure if things go wrong and i am paying half the mortgage that I will legally be entitled to half the house !

 

Thanks

 

would i not be entitled to half just by living with my partner as a common law wife or is this not the case anymore?

[honey5]

you should be fine if your name is on the deeds its proof that you are there regardless of who pays what

honey x

[Conniff]

I will be paying half the bills and mortgage etc, now my question is , what do I need to do legally to make sure if for any reason I split from my partner I am entitled to equal rights of the house if we ever needed to sell it?

 

Make sure it is love before you commit yourself. If you have to ask a question like that, you are not so sure.

[missmoneypenny1]

I love my partner very much, however, nothing in life is guarenteed and I think I am doing the right thing in having thoughts like this as I have to think about all the what ifs and I need to protect my childs future and my own.

 

Thanks for replies

[onlynameleft]

The mortgage company is very unlikely to agree to you being a named owner if you are not a party to the mortgage.

That would prevent them from enforcing the mortgage by way of repossession against you.

[missmoneypenny1]

I am totally confused now -

 

It was the mortgage advisor that gave my partner the mortgage suggestion that I get my name on the deeds of the property vis the solicitor that we go through to buy the house?????

 

I was just wondering if this would cover me legally etc or would i still need to get something drafted up to say if the house was ever sold half of it would be mine.

 

Thanks

[onlynameleft]

There are two different issues to consider and they overlap unfortunately.

1. Ownership of the house. If you are named as a legal owner then you are a legal owner and have an entitlement to a share of the sale proceeds. Simple as that.

2. Mortgage; the mortgage is a charge over legal ownership of the house - essentially, the purpose of it is to allow the mortgagee to exercise a power of sale if the mortgage repayments are not made. If only one owner of the property is a party to the mortgage the mortgagee's interest will always be subservient to the non party owner's interest. The mortgage company cannot enforce the mortgage against someone who is not a party ito it and are extremely uinlikely to accept the arrangement.

You could exercise a declaration of trust. However, the mortgage compnay is likely to insist that anyone over the age of 17 living at the property who is not a party to the mortgage signs a non ownership declaration i.e. that they have no legal interest in the property.

You need to talk to a lawyer and not a mortgage broker to find the best way around this.

PS There is no such thing as a 'common law wife' in law and there never has been. You are either married/in a civil partnership or you have no automatic rights at all in the other half's assets (usually you would have to prove some kind of trust has been created which as another poster mentioned below is expensive and has no certainty of outcome).

[Diggy]

I bought a house with my girlfriend about 9 months back, I am sure that my conveyancer asked me about this and we were given a standard document to sign that states each parties interest in the property and what should happen in the event of the property being sold. This was done right at the end just before exchanging contracts.

[make them aktiv runners]

the mortgage compnay is likely to insist that anyone over the age of 17 living at the property who is not a party to the mortgage signs a non ownership declaration i.e. that they have no legal interest in the property.

 

I agree the above. A Declaration of Trust can still be done after that form is signed (and neither the mortgage company or land registry would see it).

Basically the mortgage company has protected its own interests, the Declaration of Trust will then cover you and partner. From a legal angle, your interests would be protected but you would be prevented from trying to obtain residency rights if the house was repossessed (latter is the mortgage company's concern, and they are not interested in the distribution of assets other than getting their own interest back).

 

NB. You must sign the Declaration of Trust AFTER the mortgage companies declaration. To do it the other way round would immediately negate your interests.