AIBU - Staying on house deeds after being bought out

[BrianWankum]

Sorry this is long, tried to give full context.

My boyfriend split with his ex partner about 8 years ago (not married) - they share a now university-aged child and a house in London. The house hasn't previously been able to be sold due to complicated tax issues arising from the XP's nationality - as far as I know this is all accurate. But now all that has been sorted, and the XP is ready to buy him out. They signed an agreement when they bought the house that in the event of a split they would divide it 50/50 - there were years when he was the only one paying the mortgage and obviously since he moved out, the XP has been paying the mortgage, and they're happy with the percentages. The XP's family (and hence her via trusts etc) are seriously loaded.

So far so good.

But she has now said to him that once she pays him off, that she'd like his name to stay on the deeds. For some vague reason about if she dies, it being beneficial for the adult offspring? (My boyfriend is autistic, and although he isn't bad with money, he hates financial admin and becomes quite passive in such situations.) I can't quite work out whether it's something to do with the son getting overwhelmed with so much money (although half a house sounds like it will be a drop in the ocean) or whether she's trying to reduce inheritance tax (likewise, I don't think half a house will make that much material difference).

But it just seems like a terrible idea for both of them - my boyfriend could just start squatting at the house if his name's on the deeds, or if say the roof falls in then he could be jointly liable for the repair. I'm sure there are more issues I haven't thought of.

Am I being paranoid/overprotective on his behalf or is this the stupid idea I think it is?

I would expect the person being bought out to be removed from the deeds. Your boyfriend needs legal advice to understand the implications e.g. if he bought a home he would then be an owner of two home so there are consequences in relation to stamp duty.

His name should come off the deeds in this event. Up to both parents to make individual Wills to protect anyone they wish to benefit.

The only thing I can think of is that with his name still on the deeds then he will still be liable to pay the mortgage if she doesn't (it's called joint and several liability).

If you're looking to buy a home together then he will likely show up as still having a mortgage and that will affect how much of a mortgage you will be offered.

On the other hand, with his name on the deeds then the property cannot be sold without his agreement (or they would otherwise have to go to court to get an order for sale).

Is his ex concerned that her family might try to force a sale of the property if she were to die first or for any other reason?

It may not be likely but having a legal interest in a property you don't live in can mess you up with claiming means tested benefits.

Thank you, a few more things that I can make sure he's taking into consideration.

He's way too inclined to try to be reasonable and accommodating whether or not the other party is!

Is his ex concerned that her family might try to force a sale of the property if she were to die first or for any other reason?

As far as I know, no this wouldn't be a concern. I've met his son and from everything he's said he has a very good relationship with that side of the family and they seem like lovely people.