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What could be the problem if my name is not on the deeds?(36 Posts)
My husband and I are about to buy a place, but because I am a SAHM our mortgage will be in my husband's name only and this apparently means my name can't be on the deeds. How will this affect me if we were to divorce? I ask because half the deposit was money I saved.
Were moving hundreds of miles as my husband found a job he loves, so i'll find work once weve moved - obviously cant work til move to the area. finding a mortgage at the moment and I want my name on it (at moment technically self employed but put homemaker as don't earn). I want the security and will be contributing to mortgage once work, and it will be our home - and yes - I have a daughter id want the property left to so easier to pass to her if im on it. when we buy it ive already discussed and hubby agreed to say it goes to her after we go. (don't want it going to parents who own homes so obviously don't need our little home, when my daughter rents - like her to have security.)
HSBC offered us less than half we need to buy a house! - where can you buy a home for 60000!! so we could afford a park home - but you cant get a mortgage for a park home so then in is the problem!! but husband doesn't believe that's because of my being on it as homemaker - think they are simply inept, probably put his income as 13k instead of 30k!! after all, they put in the wrong figures the first time they did it, apologising when they corrected it - hope that doesn't affect credit history!! we were told to see an expert advisor in the branch - they included our rent as something we need to pay when we are paying our mortgage!! and had the term of the mortgage take us over age 75 when hsbc policy is to never agree such mortgage terms. so declined because of hsbc stupid mistakes!!
sensible to have both on mortgage - I was told mortgage providers insist on it nowadays by a few sources.
We're looking into buying at the moment and as a sahm our mortgage adviser says we have a higher income than dp alone as mortgage providers count tax credits also which I'm assuming others get?? I'd be very disapointed if they turned around now and said 'she can't be on the mortgage or deeds or whateva as she'd just your wife at home. To be honest I wouldn't stand for it. It would be like being no more than a house keeper!! Fair enough if mortgage can only be done in one name but why deeds? Also life insurance for if one of us dies I'm definitely hoping to get that and for mortgage to be payed off if so as that way its security for both of us should the worst happen. Dp couldn't work and look after 4kids if I died so he needs me like I need him!
MooseBeTimeForSpring - it is a tricky area of law and in reality the 'home rights' notice does act as a flag and probably a red one at that.
The notice does not mean the property can't be sold BUT lender's do a specific search for such entries before lending whilst a buyer whould shy away from a purchase in much the same way - if someone has a legal right to occupy the property then the value for security of a loan is diminished whilst what buyer would want a third party living in their home?
The important thing to then note is that the notice is only valid whilst you are still married (it can also be removed in other circumstances as explained in the Public Guide 4)
You will be ok if you have filed form HR1, but not otherwise.
Have just seen the post from the LR. I stand corrected!! I'm clearly the one talking bollocks!!
bevelino that's where the "home rights" notice that another poster referred to above comes in. It puts a red flag on the title records at the Land Registry so it can't be sold, remortgaged or have further borrowings secured against it without the OP being informed.
The Solicitor is talking bollocks. It is possible to be on the deeds but not the mortgage.
If your name is not on the property register, (Title Deeds) certain lenders may let your husband remortgage or secure debts and borrow money against the value of the property without your permission. That's not to say your husband would do this to you but lots of people, mainly women are caught out by this.
It can be the case that a single borrower might be lent more that a joint one where both are not earning when the mortgage is taken out. Lenders may vary though.
One thing to correct from one of the above posts is that you cannot have both names on the 'deeds' but only one on the mortgage but it can work the other way round i.e. two on mortgage and only one on the deeds
The only information which may be relevant to you from our website is probably our Public Guide 4 although this is often referred to in circumstances where married couples have separated for example www.landregistry.gov.uk/public/guides/public-guide-4
Once divorced the protective entry can be removed so I suspect that it will not fully answer your original question
Mortgages and deeds are separate things. You should be on the deeds.
What possible objective justification could they have for lending you less because a SAHM is on the loan too?! That sounds like it would breach equality legislation.
I hate lenders who behave like this
The poster who is not married and is not on the deeds needs proper legal advice - you are in a VERY precarious position
Our lenders calculated that we would be lent less if my husband and I were on the mortgage as I am not working. It was both the solicitor and lenders who informed us that my name could not be included on the deeds. I am going to check the land registry website and see what it it says.
The mortgage company should be using household income to calculate the amount they will loan. Blimey I'm not even old and I remember
housewives homemakers on mortgage applications! Some of them had never worked!
The problem isn't if you are married and get divorced, the problem comes when the person with the property dies. There is nothing to stop the dh leaving the house to the children. All fine now but when they grow up and sell it out from under the op? Or if the op died and her dh had a new family there would be nothing to stop him leaving their house to the new family. These may sound extreme but they can all happen even when people truly believe they are acting in everyone's best interests and being very fair.
Obviously this is a lot of "what ifs" but that's what financial and estate planning is for.
Also notcitrus is right. The mortgage company has strict terms and conditions about second charges and additional interests on properties. If it ever came to repossession they will want the best chance of recovering their money.
I think most banks don't want to lend if someone else other than them and the mortgagee has an interest in the property. I was on the deeds but not the mortgage for our first flat, and the bank was shocked when we came to sell, as apparently that was against their policy, and banks since have only agreed to lend if we're both on the mortgage.
Though presumably I'd have an interest even if not on the mortgage or deeds, given all the forms our lodger has to sign when we remortgage, to confirm they don't.
Who told you that your name can't be on the deeds? Not your solicitor, I hope.
When we bought our first place, I was a full time student and not working, but my name was on the deeds.
This is nonsense. When we took out this mortgage I wasn't working as I had left my job to move to a different part of the country. I am on the mortgage and on the deeds. I wouldn't dream of having it any other way.
I have this same problem. We owned a house together then sold it when I became a SAHM therefore, I no longer had an income when we got a new mortgage. I paid half of everything into our our house and put up a large sum of money upfront for our new mortgage. However, I was unable to go on the mortgage or deeds for the new house because I was not earning at the time. We have spoken to solicitors and the mortgage company and for some reason or another I still can't get my name on the deeds or mortgage. Really worried as we aren't married.
You are protected by way of your marriage, this is a marital asset and could be divided on separation. If you have given sums by way of deposit, make sure you have a clear record of this in case you have to rely on it later.
But I would want to know more about why you 'can't' be on the mortgage.
You both need to be on the same page about what marriage means to you both, it shouldn't be about each clinging to 'their' assets.
You can have your name on the deeds (ownership) without having your name on the mortgage (liabile for payments)
As a married person you can have your rights to the property asserted through the Land Registry.
I didn't count towards what our lender would lend us as I was a student at the time. But I have always been on the mortgage and on the deeds.
Oops stupid phone!
When we spoke to HSBC they said that for DH to be on our mortgage (and therefore deeds) he would have to be listed as my dependent as his business isn't making any money at the moment, which would negatively affect our eligibility. But as Signora said not all lenders have the same criteria.
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