Buying a house jointly

Thesearcher

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Hi, is it possible for two people to buy a house jointly - one with cash and the other with a part mortgage but treated separately i.e. Person A has their 50% in cash and Person B has their 50% in cash and part mortgage, and Person A isn't involved in the mortgage of Person B. The question being, would this involve a split in the title or can it be done on a Tenancy in Common basis whereby each holder has a distinct, separately transferable interest - they both own the house but only one of them is in debt to the bank? And if so, will this work with a bank?
 

Monbretia

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Highly unlikely, the bank will want both on the mortgage as one person can't mortgage a house they only own half of, bank will want charge on full house and that requires consent of other person.
 

Thesearcher

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Thanks Monbretia / Palerider. The main issues with Person A is a lingering credit issue from the crash so they can't be on the mortgage as it will sink the application. However, Person A has no objection in principle to the bank having a charge on the full house - would that make it possible?
 

Palerider

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The partner could at least on paper loan you the 50% that way the cash is in your sold account and available for the sole mortgage application, he would have to sign a waiver for the lender and there may be gift tax implications to consider.

The Bank would have a first charge and your partner could take a second charge for the 50% loan if they wanted to do that.

The partner acquires rights regardless.
 
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Thesearcher

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Ok thanks, so basically he loans/transfers his 50% share but has no rights of ownership in the property?
 

RedOnion

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Person A has a credit history so bad they can't get credit, but has 50% of the value of house in cash?

It's not possible to be treated separately as stated above, the bank will want full legal charge, and if joint ownership they'll want joint names on mortgage as it gives them more security. In your case you're looking for about 40% LTV, so I don't see why a lender wouldn't consider it unless there's something extremely shady about Person A's credit history.

The other option with a loan between the parties and a legal agreement is possible, but get legal advice.
 

Palerider

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Ok thanks, so basically he loans/transfers his 50% share but has no rights of ownership in the property?
He takes a charge on the property as I said ....if he wants to do that.

Rights accrue even if he contributed nothing and lived with you in your house as your partner.
 

Thesearcher

Registered User
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Person A has a credit history so bad they can't get credit, but has 50% of the value of house in cash?

It's not possible to be treated separately as stated above, the bank will want full legal charge, and if joint ownership they'll want joint names on mortgage as it gives them more security. In your case you're looking for about 40% LTV, so I don't see why a lender wouldn't consider it unless there's something extremely shady about Person A's credit history.

The other option with a loan between the parties and a legal agreement is possible but get legal advice.
Thanks again for this. It's not so bad just the same as a lot of people who crashed and burned - there's just some residual history remaining.

It's about 30% LTV in the overall house value and nothing shady going on - just historical stuff.

Will look into the legal agreement - thanks again
 
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