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Category: UK Property Law
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My partner is going to buy his ex-wife out of the house they

Resolved Question:

My partner is going to buy his ex-wife out of the house they currently share so that she can go her own way - they have a mortgage on it, when they have agreed a price etc . . is there a way that I can jointly get a mortgage with him to take over the property - without my name being on paperwork that might go to the house? Like a silent partner? If that even exists in that way?
Or are there other solutions available? could a joint loan be obtained between he and I secured on the property without my name being on the deeds yet?

Submitted: 12 months ago.
Category: UK Property Law
Expert:  Thomas replied 12 months ago.

If you applied for a mortgage from a lender with him then it would be for the lender to decide whether to allow you to not also be named on the title to the property because you would be listed on the mortgage itself. There is no real advantage for you not being on the title to the property. It just means that he has all the control of the property and you have no real control and you exposed to liability under the mortgage.

It would be for the lender to decide. There may be some that are happy for you to be named on the mortgage but not on the title, but it’s quite abnormal so you would have to shop around.

Were you to find a lender willing to do this then he could be solely named on the title to the property but if you wish to retain an interest in the equity without going on the registered title because you will help finance the purchase by contributing to the deposit or by paying the mortgage then you should execute a a declaration of trust at the same time the transaction completes.

It would be prepared by a solicitor and it is a deed sworn by you both in which you specify how the proceeds of sale of the property (ie. when it is eventually sold) are to be divided. This could take account of any difference in your deposits by either specifying you receive x% and you boyfriend receives y% when the property is eventually sold. It would still not give you a great deal of control over the propreyt (eg. in deciding whether it is sold etc)


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Kind regards,


Tom

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