Equity Release first, Marriage second

[bwellsxx]

Hi,

I've searched through a number of threads and have not found my particular situation. Apologies if I missed it!

My fiancee owns her own home and we are going to get married in January. Unfortunately we need to release some equity from her home pretty much right away and she is not able to do so with her current income. However, with my income included the mortgage provider has said they are happy to give a new mortgage for the equity release.

The mortgage provider suggested putting my name on the mortgage but not on the deeds.

My question is what are the tax implications if any of my going on a mortgage now without going on the deeds and then getting married in January. Is there anything for me to worry about (presuming that all is happy in our relationship )? I presume that when we are married the family home regulations will come into effect and so I won't have to worry about going on the deeds.

Thanks for your help
Robert

 

[Dave Vanian]

You can go on the mortgage and not the deeds now with no implications. After you get married, if you want you can get your solicitor to put you on the deeds of the house. There is no gift tax payable on the transfer of assets between spouses. There may be legal costs though.

 

[bwellsxx]

Thanks! That's kind of what I was thinking would be the case.

 

[Danmo]

You can go on the mortgage and not the deeds now with no implications. After you get married, if you want you can get your solicitor to put you on the deeds of the house. There is no gift tax payable on the transfer of assets between spouses. There may be legal costs though.

Our mortgage provider would not do this. They said they would not lend money to/have a liability to a person who did not own the property. Have you checked with the mortgage company?

 

[Dave Vanian]

Our mortgage provider would not do this. They said they would not lend money to/have a liability to a person who did not own the property. Have you checked with the mortgage company?

I think he has.

However, with my income included the mortgage provider has said they are happy to give a new mortgage for the equity release.

If Robert and his fiancee go jointly on the mortgage and then default, the lender moves to repossess the house. His fiancee has agreed to this as part the mortgage application and she is the owner of the property so no problem with selling the house, from the lender's perspective.

 

[bwellsxx]

Our mortgage provider would not do this. They said they would not lend money to/have a liability to a person who did not own the property. Have you checked with the mortgage company?

Yes. They actually suggested this approach to us first.