Getting name added to title deeds after purchase

docker

Registered User
Messages
73
Hi, hope I can get some advice here. My sister is currently looking to buy a house with her fiancée. However she is currently only working for a few months and has children so they have been advised for her partner to apply for the mortgage on his own as they will only get the finance they need this way. For the move she would be using up to €20,000 of her own saving. (on fees, furniture, etc) Is it easy to get her added to the title deeds after the move? Would appreciate any advise on what she should do. They are getting married in 2015. Thanks.
 
Why would she not be included on the mortgage? If her fiancee can get the mortgage on his own, it doesn't seem likely that having her name on the application as well would reduce the chances of getting a mortgage even if she is not earning much. Is there something more involved.

The title deeds are something completely separate from the mortgage.

The name on the title deeds owns the house.

The name on the mortgage owes the bank.

If her name is not on the mortgage initially I think the bank would not easily allow her name on the title deeds later.
 
Hi docker

The key thing here is that she has to do a legally binding agreement with her partner on the ownership of the house. If they split up, they will be in an even bigger dispute.

Although the mortgage might be in his sole name, they can agree that she pays half the mortgage and "owns" half the house.

It seems odd that the lender will give a mortgage to Mr X, but not give a mortgage to Mr X and Ms. Y. However, that is the type of oddness which happen from time to time. If your sister has a bad credit history, it would probably bar them both from borrowing.
 
It has to do with the bank underwriting rules. Mortgage in sole name, single applicant, greater net disposable income to pay mortgage. Joint applicant with someone in a new job and children means one income taken into account, two adults and children to factor in so net disposable income far less therefore mortgage amount that will be approved will be less.

Definitely do some sort of legal agreement to cover all angles.

Bank unlikely to allow adding to deeds without adding to mortgage too, lot to be said maybe for not being liable for the debt and leaving name off.
 
Hi thanks for feedback, as wbbs mentions as a joint application her earnings are not taken into consideration while the cost of her children are. So the banks are approving 40K less than what her fiancee can get on his own. So the plan is to get her name added to both the mortgage and the title deeds a couple of years down the line. I'm assuming there would be no reason why they couldn't do this? Or are they better off drawing up a legal agreement beforehand?
 
They have to draw up a legal agreement now anyway.

Many joint purchases go wrong and are almost impossible to sort out. Just get them to spend 5 minutes reading this: Issues arising from joint mortgages

This would be a particularly difficult one to resolve. Are they sharing ownership 50/50? Is she giving him a present of €20k? Is she lending it to him? If the house falls in value and they split up, she will not want to be responsible for the negative equity.

Whether or not her name is on the deeds and the mortgage, they must do a deal anyway.

Brendan
 
Brendan, he will put in approx 55K and she 25K so an agreement that seems fair to me is that if they ever need to seperate and sell the house he would get back his 55K and she her 25K and then they split any remaining equity (positive or negative) 50:50. However as he is buying it on his own with a loan of the 25K she needs to get legal advice here!
 
Brendan, he will put in approx 55K and she 25K so an agreement that seems fair to me is that if they ever need to seperate and sell the house he would get back his 55K and she her 25K and then they split any remaining equity (positive or negative) 50:50. However as he is buying it on his own with a loan of the 25K she needs to get legal advice here!

Both need legal advice. Family law generally trumps what should happen in these cases.
 
Back
Top