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Flynny
Guest
My girlfriend owns her own house & we want to put the mortgage in both our names as i will be paying half the mortgage!
Any advice on the best way to do this???
Any advice on the best way to do this???
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Flynny
Guest
Just putting my name on the mortgage but will be paying half the mortgage from then on.Will i have tax to pay?ie gift tax?
My girlfriend only bought the house two years ago so basically she still owes the full amount,its not like shes giving me half the house because ill be paying for it with her?????
My girlfriend only bought the house two years ago so basically she still owes the full amount,its not like shes giving me half the house because ill be paying for it with her?????
LDFerguson
Registered User
- Messages
- 4,806
You need to decide which you want to do: -
(1) Just go on the mortgage. This does not necessarily result in your owning part of the property.
(2) Go on the mortgage and the deeds of the house. This does end up with you owning part of the property.
(1) Just go on the mortgage. This does not necessarily result in your owning part of the property.
(2) Go on the mortgage and the deeds of the house. This does end up with you owning part of the property.
Like the others have said..........
You need to consider what it is you are trying to achieve.
In your first post, you seem to be saying that because you will be paying half of the mortgage that you want to be on the mortgage. But is it your joint intention that if the relationship ends that you will still be responsible for the mortgage ( and it will be the entire mortgage because you are both jointly responsible so if g/f defaults........) ?
If you just want to pay half of the mortgage - but not have the responsibility, why not decide to pay rent?
And if it if your intention to acquire half of the house and half of the mortgage so that you jointly own the house and are jointly legally responsible for the mortgage, then yes, you may have gift tax and stamp duty issues.
mf
You need to consider what it is you are trying to achieve.
In your first post, you seem to be saying that because you will be paying half of the mortgage that you want to be on the mortgage. But is it your joint intention that if the relationship ends that you will still be responsible for the mortgage ( and it will be the entire mortgage because you are both jointly responsible so if g/f defaults........) ?
If you just want to pay half of the mortgage - but not have the responsibility, why not decide to pay rent?
And if it if your intention to acquire half of the house and half of the mortgage so that you jointly own the house and are jointly legally responsible for the mortgage, then yes, you may have gift tax and stamp duty issues.
mf
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Flynny
Guest
Basically we want to own the house together and pay for everything 50/50.So we arranged a new mortgage in both our names to buy out the old mortgage but when we spoke to a solicitor to change the deeds he said we might have gift tax fees to pay???It confuses me because im not getting the house for nothing,we still have a mortgage to pay every month?????
Your posts contradict what you are trying to achieve.
Transferring the deeds into joint names and adding your name to the mortgage requires other factors to be taken into account. Your girlfriend will have paid an initial deposit. How are you going to pay for your half? What about any stamp duty she may have paid? Furnishings, fittings etc?
If you wish to become joint owners of the property, you will need to go on the title deeds. The easiest way to do this is by applying for a mortgage in your joint names and if/when approved, the existing mortgage is cleared and the title deeds will be transferred to joint names. You will then be joint owners and equally liable for the mortgage in the case of default.
You should both get independent legal advice.
It is a good idea to have an agreement drawn up as to what happens to the property if you break up. There are examples of such agreements on this site (I think it might be a sticky if you search).
Transferring the deeds into joint names and adding your name to the mortgage requires other factors to be taken into account. Your girlfriend will have paid an initial deposit. How are you going to pay for your half? What about any stamp duty she may have paid? Furnishings, fittings etc?
If you wish to become joint owners of the property, you will need to go on the title deeds. The easiest way to do this is by applying for a mortgage in your joint names and if/when approved, the existing mortgage is cleared and the title deeds will be transferred to joint names. You will then be joint owners and equally liable for the mortgage in the case of default.
You should both get independent legal advice.
It is a good idea to have an agreement drawn up as to what happens to the property if you break up. There are examples of such agreements on this site (I think it might be a sticky if you search).
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Flynny
Guest
Thanks for your help everyone,if anyone else has any advice it would be greatly recieved!
Get married, it will save you a lot of hassle. Transfers between spouses are tax free. It gives you stability and if you want to go down the route of investing in a major asset it should focus your mind on where you see your relationship. Search on AAM for all the unmarried couples who are trying desperately to get out of mortgages with their partners.
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Flynny
Guest
Dont think getting married is on the agenda just yet!!!
Any other ideas???
Any other ideas???
you're better off paying your way in the form of rent until you get married.
If you can see yourself getting married at some point then actual ownership is all academic and you can save tax and hassle by holding off till then.
If you forsee a risk that things will turn sour then the worst position in that scenario would be trying to back out of a joint ownership
If you can see yourself getting married at some point then actual ownership is all academic and you can save tax and hassle by holding off till then.
If you forsee a risk that things will turn sour then the worst position in that scenario would be trying to back out of a joint ownership
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Thomas5
Guest
I am in a similar position.
My circumstances are as follow;
My girlfriend and her sister are joint owners of house. My girlfriends sister is now married and really would prefer not to be tied to this mortgage aswel.
I am currently renting in this house but we would like to own this house together, me replacing her sister as joint owner.
As selling is not really an option in the current climate how can we go about me becoming the joint owner and would there be additional costs incurred?
I would be a first time buyer. What are the options to look at as at the moment it is payments her sister could do without considering we would like to take over this as a new joint ownership.
My circumstances are as follow;
My girlfriend and her sister are joint owners of house. My girlfriends sister is now married and really would prefer not to be tied to this mortgage aswel.
I am currently renting in this house but we would like to own this house together, me replacing her sister as joint owner.
As selling is not really an option in the current climate how can we go about me becoming the joint owner and would there be additional costs incurred?
I would be a first time buyer. What are the options to look at as at the moment it is payments her sister could do without considering we would like to take over this as a new joint ownership.
Well if you're not committed enough to get married why are you committed to being liable for half a mortgage on a shared property with someone? That in itself is a hefty committment.
On the gift tax front- what's the property worth and what's the outstanding mortgage?
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Thomas5
Guest
Anybody got any advice on this situation?
Can you do the numbers?
House is worth?
Total outstanding mortgage?
Essentially, you buy out the sisters share and either take over her responsibility for the mortgage ( with the consent of the lender) or you buy out her share and you and your g/f take out a new mortgage to pay off the old mortgage.
You will incur costs. You will need a solicitor. You need to look at the numbers to see if it makes sense for you.
mf
House is worth?
Total outstanding mortgage?
Essentially, you buy out the sisters share and either take over her responsibility for the mortgage ( with the consent of the lender) or you buy out her share and you and your g/f take out a new mortgage to pay off the old mortgage.
You will incur costs. You will need a solicitor. You need to look at the numbers to see if it makes sense for you.
mf