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Adding to mortgage and title deeds
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My partner currently owns our home in his sole name. This includes the mortgage and deeds. He put in a substantial amount of equity as a deposit and we both pay a 50:50 share of the mortgage and bills etc.
We are discussing whether or not to include me on both the mortgage and deeds of the property. Is it possible to alter the names on an existing mortgage and title deeds of a property? If so what is the process and how much would this cost?
As he has already put in a substantial amount of equity into the property we would be keen to ensure that this is protected in his name. I would also be keen to ensure that in the event of death we both have equal rights to stay in the house but his son has the full rights to the equity already in it which was put in as a deposit and that i have no call on that. The amount which is remaining after the mortagage is paid off would be mine solely.
However, in the event of us splitting up we would like to secure it that i would leave the property and he would pay me the 50% value of the sum of the house, minus his equity and the mortgage.
Is any of this possible?
We are discussing whether or not to include me on both the mortgage and deeds of the property. Is it possible to alter the names on an existing mortgage and title deeds of a property? If so what is the process and how much would this cost?
As he has already put in a substantial amount of equity into the property we would be keen to ensure that this is protected in his name. I would also be keen to ensure that in the event of death we both have equal rights to stay in the house but his son has the full rights to the equity already in it which was put in as a deposit and that i have no call on that. The amount which is remaining after the mortagage is paid off would be mine solely.
However, in the event of us splitting up we would like to secure it that i would leave the property and he would pay me the 50% value of the sum of the house, minus his equity and the mortgage.
Is any of this possible?
Answers
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Well there are several points to consider and I am not an expert but I am sure someone else like Golden Shred will follow .... you would not be able to put your name on the mortage and deeds without the approval of the lender. Also do you mean that the son has a charge on the property for the proportion of his contribution? The other thing to think of is that if he went off the rails or something then you would be liable for all the mortgage, although I admit that is unlikely but stranger things have happened when people split up.
Sounds more like a legal question than a money question. You would need a contract set up that would outline all of the things that are stated above - probably in the form of a will. The deeds and mortgage can be altered if the lender will accept you, but the difficulty lies with the complex nature of the other affairs relating to this. It isn't a joint tenancy arrangement as this would pass directly to the survivor and it isn't a tenents in common arrangement as these own specific shares that they would pass on in a will. You will need legal advice andit may cost a few hundred to a thousand pounds.
I think I understand what you mean. Myself and my now wife were in a similar situation.
We changed her sole ownership of the property to a tenants-in-common ownership. We went to a solicitor and drew up a witnessed agreement as to the shares we each owned and what the split of the proceeds of a sale would be. We remortgaged to a joint one. All the above happened at almost the same time.
I don't think this addresses all your points, but it may help, and illustrates what can be done.
We changed her sole ownership of the property to a tenants-in-common ownership. We went to a solicitor and drew up a witnessed agreement as to the shares we each owned and what the split of the proceeds of a sale would be. We remortgaged to a joint one. All the above happened at almost the same time.
I don't think this addresses all your points, but it may help, and illustrates what can be done.
(1) It is straightforward for you to be named on the mortgage and the Land Registry Register. It can be done only through and with the agreement of your mortgage lender. They will call it "Transfer of Equity" and it will cost between �400 - �800.
(2) To achieve what you want you must own the property as tenants in common (TIC) with the shares in proportion - that is to say that if the property is worth �250000 and your partner's equity is �50000 then this would equal 5 shares. Your partner would therefore have 3 shares and you 2, which would be shown on the Land Registry form as 60% and 40% (a separate "witnessed agreement" by a solicitor is not required).
(3) You can both leave your TIC shares to whoever you like, so to achieve what you want for the son your partner would simply will his shares to the son.
(4) In the event of you splitting up your partner would simply purchase your TIC shares pro-rata to the value of the property at that time.
(5) The one thing that you cannot achieve is that either of you have an absolute right to remain in the property after the death of the other. Your partner's son on inheriting his father's TIC shares can apply to a court for an Order to sell which will not be refused, and similarly whoever you leave your TIC shares to can do the same.
(6) This could only be achieved by owning the property as joint tenants, in which case (2) - (4) above would not be possible.
(2) To achieve what you want you must own the property as tenants in common (TIC) with the shares in proportion - that is to say that if the property is worth �250000 and your partner's equity is �50000 then this would equal 5 shares. Your partner would therefore have 3 shares and you 2, which would be shown on the Land Registry form as 60% and 40% (a separate "witnessed agreement" by a solicitor is not required).
(3) You can both leave your TIC shares to whoever you like, so to achieve what you want for the son your partner would simply will his shares to the son.
(4) In the event of you splitting up your partner would simply purchase your TIC shares pro-rata to the value of the property at that time.
(5) The one thing that you cannot achieve is that either of you have an absolute right to remain in the property after the death of the other. Your partner's son on inheriting his father's TIC shares can apply to a court for an Order to sell which will not be refused, and similarly whoever you leave your TIC shares to can do the same.
(6) This could only be achieved by owning the property as joint tenants, in which case (2) - (4) above would not be possible.
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