Mortgage name only on deeds?

D

designer_en1

Guest
My partner and I are in the process of buying a house together, she already has a substantional deposit and I will make up the excess with a mortgage. My solicitor has advised me that as only my name appears on the mortgage the deeds will only be in my name - is this correct? It seems very strange that as her name does not appear on the mortgage she will not have her name on the deeds...

Any help will be appreciated,

Thanks.
 
If her name is to go on the deeds then it would also have to go on the mortgage. She is, effectively, gifting you the money which may have tax implications and also puts her in a very precarious position should anything go wrong in the future. You and she must discuss this with your solicitor.

Sarah

www.rea.ie
 
Thanks Sarah,

Are we talking inheritance tax when you say there may be tax implications?
Do you know why it is set up like this, it seems like we are being penalised for having a big deposit.
 
Not inheritance tax - gift tax as effectively she is giving you the deposit on a house she will have no legal interest in (as she's not on the deeds). Is there any reason for her not to go on the mortgage for the sole purpose of allowing her to co-own the house with you? It would mean that you are equally liable for the debt but, IMHO, it would be much safer for her.

Sarah

www.rea.ie
 
She will not be working over the next two years as she is pregnant and will then be taking some time out - so she will not be contributing. Mortgage company say we wil have to re-apply from the beginning and time is not on our side. Solicitor has suggested drawing up a contract of trust which should protect her interests for the short term, we will probably remortgage in 2 years time and will defo add her name.

Thanks for your help, you have been a star.
 
Your partner is in a very precarious position; as you are not married, the property you own is not designated as the family home. She could therefore find herself with no home and no right to claim a share of the property in the unlooked for event of your breaking up.
 
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