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Thomas
Thomas, Solicitor
Category: Family Law
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Experience:  UK solicitor
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As my partner is currently unemployed I helped her buy a house

Resolved Question:

As my partner is currently unemployed I helped her buy a house by putting the mortgage (and therefore the property in my name). The property is now rented out and she is paying the costs from the income. I want to protect her for the future and put the property in her name. How can I do this?
Submitted: 2 years ago.
Category: Family Law
Expert:  Thomas replied 2 years ago.
Hi,
Thanks for your question.
I note you purchased with a mortgage. Is there money still owing on the mortgage?
Kind regards,
Tom
Customer: replied 2 years ago.

Yes, on a buy to let mortgage

Expert:  Thomas replied 2 years ago.
Hi,
Thanks.
Drafting your answer now. 5mins please.
Kind regards,
Tom
Expert:  Thomas replied 2 years ago.
Hi
Thank you for your question and patience, I’m Tom and I’ll try to help you.
As there is a mortgage on the property, the lender has a first legal charge. This means that you cannot transfer the registered title in your name to your partner’s name without the lender’s consent.
In order to get the lender’s consent they would usually require that a new mortgage offer is issued to your partner. The difficulty is that if your partner is not employed then it is not likely that they will offer them a mortgage.
This means that your options are as follows:-
1. See if you can get a mortgage offer issued to your partner with you acting as guarantor for the mortgage. This would mean that the registered title would be transferred in to her name, but that you would remain exposed to the entire mortgage liability. If you are able to do this and are willing then this is an option for you but they would be able to sue you for the mortgage liability if things went wrong as you would be a guarantor so you need to think carefully about this.
2. Keep the position as it is now but execute a declaration of trust with your partner, which would state that although the registered title remains vested in your name she has a 99% interest in the property with you only having a 1% interest in the property. Again, you would be exposed to all the mortgage liability regardless of the agreement but she would have an interest in the equity and could register declaration in the form of a notice on the registered title to give her an element of peace of mind.
3. See if you can get a mortgage offer issued in your joint names together so that you can both be registered as joint registered propreitors.You can then also execute a declaration of trust as in 2 above, but you would remain exposed to the entire mortgage liability.
Ultimately though, until she is able to get a mortgage offer in her sole name she will not be able to be the sole registered proprietor without you acting in either a capacity of guarantor or joint registered proprietor with her.
I am sorry that there are not more options.
My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.
Kind regards,
Tom
Customer: replied 2 years ago.

Thank you. I also own a different buy to let solely and both are in my name. Both valued about the same with similar equity. Would there be any benefit in forming a company with both properties being put into a Limited Company with both my partner and me being 50% owners?

Expert:  Thomas replied 2 years ago.
Hi,
Same problem. The company would need to have a mortgage offer issued in the company's name, so unless there is an established trading history of profitability or other assets then they would require you to guarantee the mortgages personally, so you would remain exposed to the entire mortgage liability.
Kind regards,
Tom
Customer: replied 2 years ago.

Thank you. In that case the declaration of trust seems the best option. Can you send me a standardised one so we could return to you to be notorised?

can you also please advise the cost for this?

Expert:  Thomas replied 2 years ago.
Hi,
I'm afraid I cannot do that.
It's something that you should both really give full instructions on to a solicitor to ensure that it is drafted according to your express instructions.
They should do it for you for about £150-200 + VAT or so. It's worth it, trust me.
Tom
Thomas, Solicitor
Category: Family Law
Satisfied Customers: 7569
Experience: UK solicitor
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