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Buy a property in my partners name


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Hi Guys,

 

I don't suppose anyone knows if this is possible? Ideally I would like to put the deposit down & take on the mortgage but put the property and rent received in her name.

 

She currently has an income of under £15,000 and we are not married.

 

Any advise appreciated.

 

Many Thanks,

Rob

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Hi Rob

 

You are not going to be able to have you on the mortgage deed and your wife on the title deed im afraid. There are a couple of lenders who will allow you both on the title, and only one on the mortgage though. This is problematic thought, as if you don't meet another of the myriad criteria you might find yourself with no options very quickly.

 

What you can do is own it as 'tenants in common'. As opposed to 'joint tenants' you can specify the ownership of the property, and you should speak to your accountant in regards your tax position, and a solicitor in regards your estate planning and interest in the equity as i presume your concern is in regards one or both of these areas.

From a mortgage point of view, most lenders would judge the rental calculation based on whoever was the higher earner, but some like Precise offer a hybrid calculation based on this split. If you want to own a larger share due to you providing the deposit however, this will likely conflict with the desire to minimize your tax obligation, and or maximise borrowing based on the share of the rental income.

Speaking with a solicitor and or accountant might present some other options outside of these two standard approaches.

 

Maybe if you can outline what your priorities are in this regard, others might have some anecdotal insight into how you can get closer to the best outcome for you?

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Hi Stuart,

 

Solid advise as always, many thanks for that. 

 

I guess the priorities are really for her to receive a descent income. I'm in a position where I am earning just under 45k through work plus around 30k of rental income, and have a 50k in savings which i would like to invest somewhere but am in between a rock and a hard place with tax :( 

 

My partner earns very little through self employed income and spends most her time looking after our two children.

 

I've explored the avenues of holding properties in a LTD company but for me at present this does not seem like the right move.

 

What I'm really looking to do is get her a BTL so she can earn some income, as for proportion and being on the deeds i'm not fussed. 

 

Any ideas appreciated.

 

Rob

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Gift her the money if you are ok with that. Most lenders would be ok with a cohabiting couple gifting money for BTL, and hopefully that would overlap with a lender that had no minimum income.

She would need to be an owner occupier though, it would be difficult without that.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Amazing, thanks Stuart. Yep we own our house together so hopefully this shouldn't be a problem.

 

I'll get in touch with my broker and see what he thinks (although i think he may be ignoring me with the amount of questions i've asked him recently :unsure:)

 

I'll let you know how i get on.

 

 

 

 

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Not a slight at you Rob, but I always have a chuckle when people ask mortgage questions here, and then say they will go have a chat with their broker...

 

If i had to tell my mechanic how to fix my car, they wouldn't be my mechanic for much longer!

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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I think that the numerous changes in the BTL market has led many brokers to move away from BTL recently. If they only do one or two a month they probably feel its not worth investing the time in keeping up to date with the complex new rules and to focus on the residential market.

 

It is a shame when you have a good relationship, but if their heart isn't in it, its putting you at a disadvantage. I don't promote myself here as a rule but there's lots of recommendations in the forums and you are welcome to give me a call.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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Go on Rob. Stuart has been very helpful so use him.

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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