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buying a house together - are we better being married first or does it make no difference?

13 replies

gigglinggoblin · 08/01/2006 09:11

thats it really. have posted in legal rather than relationships as i dont want to be told that we should only get married for the 'right' reasons, i dont really feel the need to do it, i'm just wondering if anyone has come across any reasons it is better/worse to be married when you buy a house together. it will be going in joint names, and joint names will be on the mortgage even tho i dont earn anything atm.

tia

OP posts:
Freckle · 08/01/2006 09:14

Depends on whether you have children and are likely to split up really. If you buy as partners, then your share in any eventual split will be exactly what they are when you buy (usually 50/50 unless one has contributed considerably more and that greater share is acknowledged in a trust deed). If you are married with children and split, then there are different rights, e.g. partner with care of children may exercise right to stay in house, or receive a greater share of proceeds in order to house self and children.

Twiglett · 08/01/2006 09:14

I think you need to ensure that you are 'tenants in common' or 'joint owners' or something the guard you

also if one is putting in more than the other and needs to safeguard it .. say a large deposit then you need to draw up an agreement up front

Twiglett · 08/01/2006 09:14

actually 2nd bit only counts if you are married come to think about it

oh I don't know .. ignore me .. I'm making it up

Freckle · 08/01/2006 09:17

Joint tenants means that each party owns 100% of the property, so that, if one dies, the property reverts to the other and never forms part of the deceased party's estate. Most married couples opt for this.

Tenants in common is where each party owns a specified % of the property = can be 50/50 or can be 70/30, etc. There is a trust deed which is drawn up showing the agreed shares and this is registered at the Land Registry. Each party can leave their portion in their will - could leave it to each other or to somebody else.

gigglinggoblin · 08/01/2006 09:23

thanks for that, i would have had no idea there was any difference between the two. he is putting in the deposit but doesnt want an agreement drawn up as i would have bought a house and made roughly the same if we hadnt moved into his house, so its quite fair that way. we do have a child together, i also have 2 from previous relationship but he looks after them as though they were his own (he is a gem ). am not planning on splitting up but as i have done it before i know it can happen so is useful to know where we stand in worst case scenario

was also wondering if there are any strange tax laws i need to be aware of? he bought a house with his ex wife (wasnt ex at the time of course) but has never bought one with a co habitating partner so dosent know if being married will make a difference or not

OP posts:
Freckle · 08/01/2006 09:30

Not aware of any tax laws relating to buying a property that are different if you are married or not. It used to be that, if you bought as two individuals, you were each entitled to tax relief whereas a married couple was only entitled to one lot of tax relief, but that changed ages ago.

gigglinggoblin · 08/01/2006 18:50

quick bump incase anyone else has any words of wisdom

OP posts:
finefatmama · 09/01/2006 00:14

I have some notes from a course i attended. I hope it proves helpful:

You can own a property in 2 ways. The first is according to the Title Deeds and the second is according to your contributions to the property, this is called your "Beneficial Interest".

Unmarried Couples may find it better to own a property as Tenants in Common to avoid the problems of the property passing on their death to their partner or their partner's family and not members of their own family. Entering into a written agreement with
your partner when you buy property
together is not strictly legally binding
but can be a very useful indication of your
intentions about the property if you
separate.

If you own property with your partner then you may need to decide what to do with the property after you separate. You may decide to sell and split the proceeds, or transfer your share to your partner, or buy out your partner's share. You could decide that you do not want to sell the property straight away and you want to stay there until the youngest child reaches 18 or finishes full-time education. You may need help from your partner to pay the mortgage, the court can order your partner to help with the mortgage payments.

Within the context of a divorce or the breakdown of a relationship people often think that their partner cannot claim the house because it is not in joint names. That is not the case - particularly in divorce. Within the context of a divorce a wife, for example, may often successfully make a claim against the matrimonial home even though it is in the sole name of the husband. Whose name is on the title deeds tends to be less important in cases of divorce.

However, in the case of cohabitees whose name is on the title and whether the partners are jointly on the mortgage may be of crucial significance. In the case of cohabitees, whether the property which they occupy is in one partner's sole name or whether it is joint, it is almost always sensible to enter into a written agreement about who is entitled to what when the property is bought or when the partner moves into the property. This avoids any dispute later and it is infinitely easier to get a person to sign an agreement when buying a property or when moving in than it is later when the relationship might have broken down. For cohabitees in particular, such an agreement drafted by a solicitor and properly formalised can avoid costly litigation about the property if the relationship later breaks down.

gigglinggoblin · 09/01/2006 10:42

thankyou ffm, i will read that properly later when i dont have 3 kids hanging onto my leg

OP posts:
NotActuallyAMum · 09/01/2006 13:25

Just wanted to add that you can be joint tenants even if you're not married if this is what you want. My DP and I are joint tenants because we don't want anyone to have any claim on the house if anything happens to any of us

Prufrock · 09/01/2006 13:35

the only other thing to worry about is what happens if one of you dies. If you buy as joint tenants the house wil automatically belong to teh other as Freckle said, but if you buy as tenants in common his part will not necessarily go to you so make sure you both make wills. Also as an unmarried partner anything you inherit from each other over £240,000 (roughly) would be liable to Capital Gains Tax

Klauz33 · 12/01/2006 15:57

Prufrock - surely that is inheritance tax you are thinking of not CGT.

Prufrock · 12/01/2006 16:25

ooops - yes it is I was busy doing mine and dh's last 5 years incredibly convoluted CGT losses claims at the weekend so was a bit obsessed!

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