Moving in and going on the mortgage

A reader from London is moving in with her partner and wants to get her name on the mortgage.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes her through the problem and what it means to her finances.

Enor from London asks:

I am going to be moving into my partner's place in January next year.

Just wondered what the procedure is to get my name down on her mortgage as I will be paying half off it.

Tony replies:

The process is called a Transfer of Equity and it is relatively straightforward.

A solicitor will complete the necessary paperwork for the transfer of ownership into joint names and usually there is an exchange of money for the equity being bought (this is called a consideration).

As the property is subject to a mortgage, the transfer of equity cannot complete without the lender's consent. As you are going to be an owner of the property, they will usually want you to be on the mortgage and subject to the terms and conditions of the loan; this means that you will need to approach your partner's lender and they will underwrite your application.

This is an ideal time to meet with a mortgage broker who will be able to assess whether it is better to approach your partner's existing mortgage company, or, perhaps move to a new lender as your circumstances have changed.

Transfers of equity are common place and every lender will have a simple process for you to follow, you will incur legal fees from the solicitor for dealing with the change of ownership with the land registry, you are likely to face an administration charge by the existing lender and also the transaction might be subject to Stamp Duty, your mortgage advisor will be able to break down the costs for you in more detail.

What is very important, but seems to be something that many non-married co-owners don’t do, is to make sure you have an agreement between you both detailing how you will sell the property and share the proceeds in the future.

Questions on how to resolve disputes over how to sell a property are the most commonly asked of me on this site and agreeing this at the outset could well save you a great deal of trouble, time and money in the future.

You should also make sure that both of you have a will in place, detailing how you wish your equity to be handled in the event of your death.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority