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Buying a house, ownership/mortgage

(9 Posts)
AdoraBell Thu 21-May-15 04:30:36

Buying a house in the UK.

Can you have joint ownership, married couple, with the mortgage in just one name?

TIA

lastnightiwenttomanderley Thu 21-May-15 04:44:45

I'm no expert but my understanding is that the mortgage company will insist on the mortgage and ownership.being the same. Otherwise there could be a scenario where somebody defaults on the mortgage but actually doesn't have rights to the whole asset, leaving the mortgage company out of pocket. They will almost certainly be the first charge on the property anyway (so get first dibs on any sale proceeds) but would imagine that they would like to avoid complexity!

Are you worried about one of you affecting the ability to get a mortgage?

lastnightiwenttomanderley Thu 21-May-15 04:51:32

Thinking about, if the mortgage company were ok with it, I think the only possible way you could do this would be as tenants in common, where you each 'own' a set percentage and can leave it to.others in wills etc. Most married couples are joint tenants which means they both have full responsibility and if something were to happen to one, the other would maintain full ownership/responsibility

AdoraBell Thu 21-May-15 04:54:05

Thank you.

Mortgage company haven't said anything. Numerous conversations and correspondence, so they are aware of what we want, but suddenly our solicitor says it can't be done.

Mortgage has been approved already.

AdoraBell Thu 21-May-15 04:57:02

Thanks again, do you know, would being tenants in common mean having both names on the deeds?

lastnightiwenttomanderley Thu 21-May-15 05:26:51

In the UK there are two main forms of joint ownership: tenants in common and joint tenants. Essentially, the difference is easiest to understand if one of you dies (happy!) With tenants in common you.could leave your share to somebody else, joint tenants it will pass to the other tenant. Your solicitor should be able to do this.

If mortgage has been approved, can the mortgage provider just not add in the second party or is there a reason why you don't want this?

Collaborate Thu 21-May-15 07:51:12

Complete the purchase in one name, then the owner executes a deed of trust holding the property in trust for both equally. Job done.

AdoraBell Thu 21-May-15 16:37:39

Thanks again everyone. Seems to be getting sorted now.

We need it in both names because where we currently live the tax laws take all global assets into consideration.

This means if DH should shuffle off his mortal coil before severing all links here I couldn't inherit the family home in the UK until after paying the 40% inheritance tax to this government. Even though the house we hope to buy is below the threshold for UK inheritance tax. Also couldn't sell the house to raise the tax, property would pass to government and I would be obliged to pay DCs their 25% x 3 in addition to the 40% tax. <head explodes>

LotusLight Thu 21-May-15 19:14:59

In law you can but in practice in the UK no lender will allow it.

What you can do as people say is have ownership in divided shares even one of you 1% and other 99% if you wish although then the 1% owner is still liable for 100% of the mortgage if the other partner disappears.

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