Yes, it is true! If you buy a property with your partner or with a bunch of your closest mates – you will raise a higher deposit sum and benefit from a larger property. However, keep in mind, this is a tricky business and if anybody defaults, you may be held liable. So, before you get into the property bed with anyone – even your spouse- it is best to be aware of what the process entails so you can make a well-informed decision. Remember that each and every minute detail counts. You want to get a property that is not damaged and well maintained. Whether you want to get everything from scratch such as installing a new boiler which can be found on this website, or changing the entire flooring of the new house, you want to make sure your partner is on board with all such changes.
Hey, we just want to make sure all your interests are protected!
Here are ten things you may want to factor in when procuring a property with a partner:
1. Communication is key
Sure, buying a property may appear to be as the beginning of a new romantic chapter in a couple’s life. However, it means making a colossal financial commitment. Not only that, you are also making a commitment to each other and to stay together. Your partner and you need to be on the same page about your property criteria. Sit down and have an honest conversation with each other and share what your dream property would look like. Having the same goals will truly simplify the complex road that lies ahead. A few things you may want to discuss includes:
- What amount of deposit can you both raise?
- Do you want a freehold or a leasehold property?
- Should it be an apartment or a house?
- Do you both desire an older property or a brand new construction?
- How will you share the ownership?
2. Nature of Tenancy
Another thing to decide will be whether you will want to be joint tenants or tenants in common. What is the difference, you ask?
Tenants in Common: This can be a group of 4 people or relatives buying a house together who can own a property in unequal shares. There are a few conditions involved here. A shareholder can name his inheritor as he pleases. You’ll all still have to pay the inheritance tax and co-tenants are permitted to mortgage their respective stakes for whatever purposes. However, this is not a commonly accepted practice as the lender will not have enough safety as he cannot simply take over the property provided as collateral.
Joint tenants: This ownership option splits all stakes into equal shares for the owners. This alternative is preferred by married couples or individuals tied in civil partnerships. If one of you passes away, the other will inherit the share as well as the remaining mortgage responsibility.
3. Event of a Split
Okay, it’s best to always be prepared for any kind of situation – but we are rooting for you two! It is probably better to have this tough conversation and decide what the roadmap will be. In the event that you two split up, who will get the property? Who will buy whom out? Remember mate, prevention is better than cure.
4. Obtain a Trust Deed
Getting an official trust deed will give you some protection under controversial conditions, such as:
- If one of you stops contributing to the mortgage
- The roadmap if you wish to end the contract
- The amount of notice required to end the contract
- If you or your partner wishes to sell the property
5. Be Aware of Your Rights
You and your spouse will each enjoy an equal right to live within the said property. You cannot convict your spouse, no matter what. You will need each other’s signatures to raise loans or get under debt with the property as collateral.
6. Hire a Solicitor
Buying a house is a complicated, tricky process. You will definitely need the assistance and guidance of a solicitor to help navigate these steamy waters. Make sure that both you and your partner like the person you decide to bring on board as you will be spending quite a bit of time with him in the coming few weeks – or at least till the sale is finalised and closed.
7. Buy Life Insurance
This is a necessity in the case of joint tenants as you do not want to leave your partner behind in a pickle – in case you pass away before your time. We pray you lead a long, long life – but as mentioned earlier, prevention is always better than cure! Obtaining the right life insurance policy will make sure that your future mortgage payments are taken care off and there is no burden on your partner.
8. Shared Responsibility
So, when you buy a property – it’s not just the financial burden that has to be shared. Make sure that you and your partner support each other emotionally and mentally. Whether it is looking up properties online, talking to real estate agents, making appointments with different brokers and banks – you both need to contribute and step up your game. Buying a property is no joke – especially for the first time! It can be a stressful time and will truly test the strength of your relationship bond. Let this be a time when you two grow stronger – not weaker.
9. Worth the Effort
When you take those steps into your new home – the entire hassle and drama appear to be worth it. All that is left to do is unpack and settle into your new home! Do not worry, you may end up looking at dozens of properties. But when you walk into the property that is meant for you – you will just know. Everything will fall into place as you make the offer and wait for it to just get accepted.