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F E Smith
F E Smith, Advocate
Category: Family Law
Satisfied Customers: 9778
Experience:  I have been practising for 30 years.
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I am looking to add my partner to my mortgage and deeds? I

Customer Question

Hi
I am looking to add my partner to my mortgage and deeds? I have owned this house solely for the last 9 years and had the mortgage on my own. I have been with my partner for around ten years and he has lived with me for the past 8 years. I have spoken to a solicitor who is drawing up a deed of trust to protect my equity. Then moving forward everything else will be 50/50. To add his name to the mortgage is straight forward . However I now need to add his name to the deeds. I have received a quote for £1250 with the possibility of having to pay stamp duty as well . So in total to do this is around £14k. Therefore I am thinking would the deed of trust be sufficient and valid if we do not add his name. As I want to protect my equity but also want to protect my partner as well,
thanks
Ruth
Submitted: 5 months ago.
Category: Family Law
Expert:  F E Smith replied 5 months ago.

Thank you for your question - are there any children at all?

Customer: replied 5 months ago.
No children - he has two from a previous marriage they are both adults now
Customer: replied 5 months ago.
Hi - are you till looking into this one please? thanks
Expert:  F E Smith replied 5 months ago.

I apologise for the delay in getting back to you. Blame weekend. I will be off-line now until later.

If you add your partner to the deeds of your house, the lender is probably going to insist that your partner is also added to the mortgage. That would give your partner liability for the full mortgage along with you.

If he puts nothing into the property and there is no agreement as to what will happen when the property is eventually sold, then the proceeds are split 50-50. If you therefore want to preserve your equity, you need a deed of trust to reflect your individual shares and preferably a cohabitation agreement to prevent him claiming an equitable share by virtue of any money which he alleges he has paid the house.

I know you didn’t ask about any of that but it’s worth mentioning in case you haven’t thought about it. Of course, you may not be bothered.

There may be stamp duty to pay on the transfer from 2 names to one name and that is based upon the amount of mortgage. If the mortgage is under £250,000, there is no stamp duty to pay. It is based upon half of the mortgage and half of that mortgage is under the stamp duty threshold.

It depends what you want to achieve by putting the property into joint names as to whether it is what you want to do. If you want to make sure that your partner gets your share of the house in the event that you die, then it can be done with a simple will.

If you can tell me what you’re looking to ultimately achieve, I can then tell you how to go about it.

Customer: replied 5 months ago.
Thanks for your response, to add my partner to the mortgage is easy with Nat West- its the deeds which I am now thinking not to bother changing and to keep both the deeds and mortgage in my sole name.Would the deed of trust and cohabitation agreement that my solicitor is currently putting together be enough to protect both of us without changing the deeds "transfer of equity" on the house or the mortgage and just keep in my name.thanks
Ruth
Customer: replied 5 months ago.
HiBasically alI I am doing is looking to include my partner on my mortgage which is £180k everything will be split 50/50 from here on in. I am having a declaration of trust and co-habitation agreement drawn up to protect the £260k I have as equity in case we split up. My partner wants some security and wants to contribute to the house and obviously earn and profit we make 50/50 split.thanks
Ruth
Expert:  F E Smith replied 5 months ago.

Putting the property into joint names is one way of protecting both your interests but you may be giving away more than you want to preserve. You have more control over doing a deed of trust whereby you can dictate exactly what happens to the property during the course of your lives and by doing will which dictates exactly what happens to the property in the event that either of you die.

Once you transfer the deeds into joint names or effect a deed of trust, it cannot be unravelled without both of your consents.

In circumstances like yours, you would normally have a deed of trust which says that you get the first £180,000 (which you may want index linked) and that everything after that is split 50-50. You might want to also dictate in the trust who is responsible for the mortgage and the bills.

Can I clarify anything else for you?

Please take a moment to look at the top right hand corner of the page and rate my service by clicking one of the stars at the top of the screen. Then press Submit. Thank you. If you still need any point clarifying, I will still reply because the thread does not close.

Best wishes.

FES.

Customer: replied 5 months ago.
I only need the deed of trust then and not to bother with changing names on the house deeds and mortgage.my question is - is a deed of trust & will sufficient without having to add names to the mortgage and transfer of equity.I am protecting as a % £260k so it increases if the house value goes up - the remaining £180k is split 50/50 as is bills/mortgage etc all 50/50.Once you clarify I do not need to change the transfer of equity and mortgage then I can rate you.thanks
Ruth
Expert:  F E Smith replied 5 months ago.

In my opinion, yes, the deed of trust is sufficient BUT there should be a restriction on the property deeds to say that the Camino disposition unless the terms of the deed of trust to bring complied with. Otherwise, no one knows the trust exists.