Hypothetical property/mortgage question

[AndyT77]

If i wanted to buy a house with my partner, say for example around £200k, and the mortgage was in joint names for £80k, the rest being a deposit from another party, could an agreement be drawn up to state the ownership of the property was 60% another party, 40% my partner and i?

[JezHill]

Will the other party be prepared to own it with you both and come on the mortgage? If so it is quite easy to own the property as tenants in common. If the other party does not, or cannot, come on the mortgage their rights are restricted.

They could take a second charge over the property, but a mortgage lender will want to know where your deposit is coming from, and will not be happy if the other party giving a deposit is taking some sort of charge over the property.

I am sure someone with more legal knowledge than me will be here soon to help

[AndyT77]

Thanks

[QBee]

The mortgage company might well require that the names on the deeds are all names on the mortgage application. But I am not a mortgage broker, and you might consult one, as they get their % (typically about £400) from the mortgage company, and know the market, and can probably get you a better deal than you can yourself. I have used a broker recently and we are now living in the house we would not have been able to buy without my broker's expert assistance.

[Sarnie]

AndyT77 said:

If i wanted to buy a house with my partner, say for example around £200k, and the mortgage was in joint names for £80k, the rest being a deposit from another party, could an agreement be drawn up to state the ownership of the property was 60% another party, 40% my partner and i?

There are some quite specific rules around this. You can have your deposit come from other sources than your own, its called Gifted Deposit. However the lender will not allow that person to legally own any of the property and will ask for a letter signed by the giftee to say that the gift is not repayable and will not hold any charge over the property.

[QBee]

Mention the idea of talking to a mortgage broker, and one turns up with immaculate timing! Now you have a proper answer, not just my best guess.

[JezHill]

I am also a mortgage broker and agree with Sarnie. A gifted deposit is not the answer as the lender will not allow it.

I would suggest a 3 way purchase with you, your partner and the 3rd party. If they are not willing to come onto the mortgage you need to explore the option of 2nd charges which some lenders will allow.