First time buyers in Cardiff have been hit by a trend where real estate values are increasing more rapidly compared to wage rates. Consequently, numerous individuals are turning towards shared property purchasing wherein they team up with a partner or friend. This initiative allows for a more affordable housing option. Joint-purchasers are generally seen as more attractive to lenders since the combined income boosts their borrowing ability, factored in during mortgage affordability calculations.

How many people can co-own a property? 

Some lenders, surprisingly, are open to having up to four co-owners. If an owner stops contributing towards the mortgage, the remaining partners retain the right to live in the property unless a contrary court order is issued. Any intention to raise the mortgage amount later will require approval from all owners, enforcing the need for a long-term strategy.

Joint tenancy or tenancy in common? 

When it comes to joint tenancy and tenancy in common, joint tenancy is popular among married and civilly partnered couples. This tenancy format hinges on survivorship rights; the surviving partner inherits the property if the other partner dies. It also requires unanimous agreement when remortgaging or selling the property.

On the other hand, ‘tenants in common’ ranked high among relatives and friends. This lets you individually own distinct yet unequal parts in the property, making it feasible if one owner has a larger financial contribution. This tenancy offers individual action privileges, allowing owners to sell or gift their share without needing the other owners’ consensus.

Do I have to pay the mortgage if we separate? 

If partners separate, all mortgage payers remain jointly and individually liable for the mortgage. Hence, if one party exclusively funds future payments, they’re still fully responsible. You jointly own the entirety of the property, not just half.

How do I remove my ex-partner from a joint mortgage? 

Removing an ex-partner from a joint mortgage calls for evidence that you can handle the monthly payments alone. It’s an undoubtedly tricky scenario, hinged on the lender’s confidence in your repayment capability as a solo borrower despite the safety net offered by double ownership. If you show a history of single-handed payments post-separation, the lender might authorize a mortgage transfer to your name only. However, some lenders might reject your request, so it’s advisable to consult a mortgage advisor in Cardiff prior. Your family could also be a potential aid, either substituting for your ex-partner or donating lump-sum payments, thus reducing your owed amount.

Separately, even if you’ve relinquished the house to your ex, your name on the shared mortgage still renders you liable for payments. If you’re aiding your ex with the payments, ensure they are making good on their promise by checking your credit report. Any negligence on their part can dampen your score and if you’re planning a new purchase, the existing payments will affect the potential loan amount.

Ultimately, buying a home isn’t the same to renting; disagreements can get messy. So, it’s recommended to agree beforehand on the way forward, should things not plan out as expected.

Date Last Edited: February 12, 2024