Should I put my husband's name on the deeds?

[WhatTheWatersShowedMe]

My parents currently own the house I live in with my DH and 2 DCs. We've been renting it from them for the past 7 years. DH and I have been married for 9 years, together for 19 years, are very happy together.

Parents have now decided they want to sign the deeds of the house over to me and draw up loan agreement between me and them to prove I owe them, and their estate, the value of the house. So, we'd have a house with no mortgage, but would still continue paying my parents.

I'm happy with this arrangement, but one thing I'm unsure about is that the deeds (and the loan agreement) will be solely in my name and not jointly me and DH. Can someone help me understand where that leaves me (and DH) legally in the event of separation, divorce, or death? Should I put him on the deeds when they're in my name? We'd likely going to take to take a mortgage out as we need to extend the house as the kids are mixed sex and sharing a room and extending the house would be cheaper for us than moving.

If you divorce it makes no difference whose name the house is in. It will be an asset of the marriage and the equity (i.e. the value of the property after paying off the loan from your parents) would go into the pot to be split between you.

If you die and the house and loan are in your name, the loan will have to be settled by your estate (unless your parents choose to write it off or arrive at an agreement with your husband allowing him to take on the loan). Anything left over will be distributed according to your will.

If you die and the house and loan in joint names the position depends on whether the house is owned as joint tenants or tenants in common. In either case he would be liable for the loan but would not have to settle it immediately (unless the loan agreement said otherwise). If it was owned as joint tenants the house would automatically go to your husband. If it was owned as tenants in common, 50% of the house (or some other proportion if you enter into a Deed of Trust) will be part of your estate, so what happens to that would be governed by your will.

We'd likely going to take to take a mortgage out

If this means that you and your husband would be applying for a joint mortgage, the mortgage lender will insist that both of you as applicants are named on the house deeds.

If the house is in your name only, any mortgage application would have to be in your name only and you would already have a loan agreement in place with your parents. This would affect how much a mortgage provider would be prepared to lend you.

Lots to think about then.

Thanks for this information, it is really useful. I think once the house is in my name I will speak to a solicitor and get DH added.

It's easy enough for your solicitor to do. When I met my now DH, we both had our own houses. I sold mine and moved in with him. His solicitor then drew up a deed in which DH gifted me half of his house (as a joint tenant) "through natural love and affection" and it was registered with the Land Registry. Job done. Cost peanuts.