Looking to purchase a property in Liverpool?
Property prices have been on the rise, often outpacing the growth of wages. To tackle this, many people are considering joint property purchases with partners or friends.
This approach helps spread the financial load, making it easier to afford a suitable home. Joint ownership can also boost your borrowing capacity since lenders look at the combined incomes of all parties involved.
How many people can co-own a property?
Some lenders surprisingly allow up to four individuals to co-own a property. This means if one person stops contributing to the mortgage, the remaining co-owners still have the legal right to stay in the property.
Planning ahead is important. If you’re thinking about making changes to the mortgage down the line, it’s important to get consent from all co-owners. This forward thinking helps avoid potential conflicts.
Joint tenancy or tenancy in common?
‘Joint tenancy’ is often favoured by couples or those in civil partnerships. In case one partner passes away, the property smoothly transfers to the surviving co-owner, usually covered by life insurance for mortgage repayment.
When buying with relatives or friends, ‘tenants in common’ is a flexible option. It allows joint ownership without requiring equal shares. This setup is handy when one person contributes more financially.
Do I have to pay the mortgage if we separate?
All borrowers on a mortgage share joint and several liability for payments. This means if one person stops paying, the other remains fully responsible to prevent the mortgage from going into arrears.
Recognising this shared responsibility is key. Lenders take a careful look at mortgage arrears, which could affect future borrowing.
How do I remove my ex-partner from a joint mortgage?
Lenders want to see that you can manage payments independently. Before making any changes to the mortgage, they’ll check if you’re ready for the financial commitment.
After a separation, it’s important to monitor credit reports, especially if you’re helping your ex-partner with payments. Defaults can impact both of your credit scores.
Can I remove my name from a joint mortgage?
Even with an agreement for one person to take full responsibility, joint responsibility for mortgage payments continues after a separation. This can impact your ability to secure a new mortgage.
When considering joint property ownership, clear agreements are essential. Whether you’re a first time buyer in Liverpool or moving home in Liverpool, knowing the outcomes in unexpected situations is important.
For tailored advice on joint property ownership, removing a name from a mortgage, or exploring your options for a remortgage in Liverpool, our team is here to help. Book a free mortgage appointment to discuss your options.
Date Last Edited: February 22, 2024
