AIBU to advise my daughter that she'd be daft to not put her name on house deeds?

OP, unless she's on the deeds she should absolutely NOT be on the mortgage.

If he's buying it in his name only, she needs to say she will pay rent/bills to him so she can walk away at any time without being tied into a huge debt and without any responsibility for maintenance and upkeep of the property.

If they buy together and she is contributing financially to the mortgage, she must be on the deeds. He can have a bigger deposit protected with a trust agreement done cheaply through a solicitor, but she needs to own shares in the house or what is she paying for.

Then there's the legal fees and stamp duty and potential mortgage fees - is she expected to pay half of those too without being on the deeds? If so, major red flags and alarm bells here.

100% agree!! She needs to protect herself!! definitely have it drawn up that they are on the deeds but the deposit he put in he gets back!

e.g the first £50k is his then the rest is split (dependent on deposit amount)

F

They are married though so a totally different scenario.

Dd2 and her dh recently bought their first house together. The monies for the house came from dh's dgm. I don't know if dd's name is on the deeds, they don't have a mortgage. The house including renovations came to about £2m. Dd2 is the bigger earner.

Not necessarily. It’s the “norm” and as I said, it costs money to change it, but it’s possible to have your name on the loan but have no rights to the property. And that’s a dangerous position to put yourself in.

Are you having a funny 5 minutes, so she isnt on the deeds, which is what I said.

This is difficult. How is she paying towards the cost of living in the house? If she is not buying the house and he is, then she should be paying rent.

If she wants to share buying the house, and he is happy for her to do so, then they need a legal agreement drawn up to show what each of them have put in and she needs to pay towards the mortgage, and any money she has put in, and any mortgage payments she has made, she can get back if they split up, plus a percentage of the house valuation (valued by the median of three surveys). In this case she should be on the deeds.

The bills are nothing to do with the house ownership. She should pay half (unless the house is huge and has several bedrooms, then she should pay less). This should not count towards mortgage payments, its just bills - the cost of heating and lighting etc.

"I am not sure how a normal mortgage works without being on the deeds as the bank can’t go after the property if you don’t own it?"

This is what is doing my head in reading some answers on the thread.

Joint property means getting a contract mortgage where 2 or more owners have equal rights to the property and share the responsibility of paying the bank loan. NO bank will give a loan in joint tenancy or tenants in common without the people signing the loan being on the deed. The bank wants to make sure the loan covers ALL property owners to go after them if they keep defaulting loan repayments.

If she's applying for a mortgage with him then she definitely should go on the deeds. She'll be part owner and he can protect his deposit.

It’s a mortgage called Joint Borrower Sole Proprietor( or the other way round). They’re quite common in certain scenarios. I’m jointly liable for the mortgage but I don’t own the property. In effect, I don’t pay the mortgage at all, but if the owner fails to pay, I’m liable. I had to prove savings and salary and take legal advice.

She won’t be paying for half, because the 60k would make up a % of the total. Also presumably the boyfriend will also be paying mortgage too.

if it were my son, I’d be advising him to make sure she is NOT on the deeds until they are married or a long term commitment where she for example drops her monetary contribution to look after kids etc.

is the mortgage going to be in both their names?

No, your daughter should not get involved. It's her boyfriend's money, given by his parents for his use, specifically to buy a house for himself. This could lead to disaster if they end up disliking each other and drifting apart over time. I believe everyone should focus on their own lives until their late 20s, working on becoming financially, emotionally, and mentally stable. There's no need to rush into these things. I can already imagine your daughter posting on Mumsnet, upset and crying, with commenters harshly criticizing the guy as if he's entirely to blame, even though the responsibility lies with her too.

If he keeps her off the deeds then he can get a mortgage by himself and be responsible for that alone. She should have a rental agreement drawn up. People may think that sounds nuts but why should he get all the protection. He can kick her out if she’s not on the deeds and they split up.

I did exactly this. Tenants in common agreement to protect my deposit (so if we split I’d get that back first out of the proceeds, then we’d split the remainder and any equity would be evenly split. we were 50:50 on everything so that made it simpler. If there is a big disparity in incomes, they will need to do some careful maths to work through a fair distribution.

if neither can afford the property on a solo basis they will need to sell or buy each other out. A good solicitor will broach this as part of the TinC agreement and how a buy out process would be agreed.

Lastly, the agreement is valid until
they marry. If she has kids before marriage and in particular stops working or goes PT she will have no more rights to a bigger share.

I don’t think we have this in Australia, it’s not the definition of mortgage. There are personal loans, credit cards, lines of credit, company loans etc and there are mortgages, which have an asset pledged as collateral- the bank can charge low (relatively to personal loan or car finance) rates because it’s low risk- there is a house there that they have the right to seize and cover the loan if you can’t pay. Naturally they charge more interest for higher loan to value ratios where the risk the asset value not cover the loan increases. How does yours work without a property pledged against it? I am not sure how a normal mortgage works without being on the deeds as the bank can’t go after the property if you don’t own it?

That is not the case at all. I am
on a mortgage but am not on the deeds. I have no ownership of the property at all. It depends on the type of mortgage.

She needs independent legal advice

If she is unmarried and planning joint mortage but not in the deeds. She will be liable for the debt but have no claim on the property

She needs to elope with him first🤷‍♀️

A friend's daughter lives with her BF in a house that his parents helped to finance. They've been together for some years and she pays half of all the bills including the mortgage but is not on the deeds. The idea was that if they stayed together her name would be added, but it has simply not happened. This appears to be because his parents are against it. It makes me wonder if they hope that somebody better will come along.
She could have been paying her own mortgage for some years and stands to lose out if anything goes wrong. It's much better to get all this sorted out at the beginning, it doesn't sound as if he could afford to get a large enough mortgage to do it alone, so they would probably have to sell up if they split.

Nah I’d be telling my daughter to pay the share of the bills (not mortgage) and then what she would be paying in a mortgage she should put in a savings account. She can then use that for her own property if she needs to. Otherwise if this relationship lasts and they are married she can contribute that money to the mortgage when he puts the house in both of their names. She needs to remain independent.

If they are taking out a joint mortgage based on both of their incomes then...

BFs deposit should be protected in the event of a split or property sale.

A document should be drawn up to say the first £X goes back to him (however much he put in) with the remaining £X split equally between the two

She should be on the deeds as much as he should

Make sure they speak to a Solicitor to ensure this is done properly

I think it's a bit young to settle down with a life partner TBH and a house is a bigger commitment than marriage in many ways. I did at 26 and wouldn't have sooner. That said many people do and if she is sure she will need legal advice. They could say, own the property as tenants in common with his inheritance ringfenced and she still gets a share according to her contribution.

My DD (20) is planning on buying a house with her bf of 2 years

@User197634 when you started your post with this, you should have clarified that you meant it to be taken literally. Because everyone has assumed when you said "my dd is buying a house", what you actually meant was my dd's bf is buying a house 🤣 14 pages later and still "it's not your dd buying a house".

When they go in to apply for the mortgage they will find out themselves how it will go.

You don’t need to worry.