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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7620
Experience:  UK solicitor holding an England and Wales practising Certificate.
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Hello, My partner who I am splitting up with is going to

Resolved Question:

Hello,

My partner who I am splitting up with is going to buy a property for her to live in with a mortgage. I am contributing to the deposit. However, I am going to have to contribute more than planned. Can I maintain a share of the property without being tied to the mortgage or connected in anyway to the mortgage?

Thankyou
Submitted: 3 years ago.
Category: Property Law
Expert:  Thomas replied 3 years ago.

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

Obviously, if only she is going on the mortgage then only she must also go on the legal title for the property. This means that you cannot go on the legal title unless you are also on the mortgage.

If you are contributing a deposit and you wish to protect it in these circumstances, then there are two options:-
1. Take a second charge to secure the monies you are advancing here. A solicitor would be able to draft this for you relatively cheaply and it would be registered against the legal title so that she could not remortgage without repaying both the mortgage (secured by first legal charge) and your loan (secured by second legal charge). The loan could state how the balance owing is to be worked out upon repayment. She would probably need the consent of her lender for this but they will likely be okay with it. This is the best option probably
2. Execute a declaration of trust with your partner, which states that although she is the registered proprietor you have an interest in the equity of the property either by way of percentage or that you should receive repayment of the loan amount upon sale first before she receives any further proceeds of sale. This could be registered in the form of a notice, but is arguably not as secure.

In either case you will want to check that the mortgage does not allow her to access further borrowing without another separate mortgage offer being issued, otherwise the equity could be diminished without your knowledge,


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
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Customer: replied 3 years ago.

Best answer I have had on here! Thanks.