I already have built up 5 years worth of equity, The flat i own is estimated to be worth about £140k and I have a £110k mortgage so I probably have approx £30k equity in it.
She lives with me and wants to be in on the mortgage so she is not throwing her money away. How do i ensure that the equity i have accumulated doesn't become half hers now? any help or advice is welcome. thanks
2007-03-06 02:54:16 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You don't. If you add her, she becomes equal partner.
One option would be to refinance taking out your equity. Not a real good idea in my opinion but nevertheless an option.
2007-03-06 03:04:23 · answer #1 · answered by Anonymous · 2⤊ 0⤋
I'm thinking she wants to be added to the deed. If she's on the mortgage, then she's half responsible for the payments and all responsible if you default.
Not in your best interest to put her on deed as then she gets a stake in the equity from the moment you both sign on the line.
Also, if something goes wrong, you can kick her out at a moment's notice and not have any entanglements.
If she does indeed want to be on the mortgage then I'd think you'd have to re-finance as it was written up with you as sole mortgage holder.
As it stands now, she's your renter.
If she's really serious, you'd probably be better off to sell and buy something in both your names. That way you get 100% equity in the house you own now.
You'd better make sure that you want to be financially entangled with her for years to come. If you do, and are, then you should just get married and be done with it.
2007-03-06 04:30:53 · answer #2 · answered by parsonsel 6 · 0⤊ 1⤋
I personally think that it's a bad idea.
Look at it this way:
If you get married one day, then she'd co-own everything with you anyway.
If you don't, she's been living with you for half of what rent would have cost her.
If she doesn't want to "throw her money away," she can buy the food/furniture/etc and let you pay the mortgage alone. If you consent to having her on the deed and the mortgage, you should really refinance and get your 30k out like the other answerers have suggested.
2007-03-06 09:27:26 · answer #3 · answered by calliope320 4 · 0⤊ 0⤋
Couple of things.
The title to the flat is represented by a deed. If you are the sole owner, only your name is on the deed.
The mortgage is the loan secured by your flat. It is the debt you owe.
If your girlfriend adds her name to the mortgage, but not the deed, she is obligated to pay the loan but all the additional equity goes to the person whose name is on the deed.
I suspect she may want to be a co-owner of the flat.
Anyway, you have a few issues to sort out on this before you determine what to do. If she is helping pay the mortgage, thats more like sharing the rent. This financial question is putting into focus just what your relationship is.
Good luck with that.
2007-03-06 03:05:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The only way she isn't "throwing her money away" is if you make her a part owner of your property. Adding her to the mortgage and letting her pay part of the payments is LEGALLY giving her part of your property. Even if you don't put her name on the title, she could sue down the road and claim she helped pay the mortgage--and the courts may demand that you pay her part of the equity.
DON'T put her name on your accounts, your property, or your credit cards unless you are MARRIED. Even then it's ok to keep some things separate.
If she doesn't want to throw her money away, she needs to buy her own flat.
2007-03-06 04:09:40 · answer #5 · answered by lizzgeorge 4 · 0⤊ 0⤋
If you put her on the mortgage she will own the house as much as you do and half of any profit could be hers. I might suggest refinancing - you get your 30K and then the mortgage is in both names. This makes her responsible for the mortgage payment just as much as you are so make sure its what you want to do first.
2007-03-06 03:05:05 · answer #6 · answered by elaeblue 7 · 0⤊ 0⤋
i've been surfing the web more than four hours today seeking the answer to the same question, and I haven't found any interesting discussion like this. it's pretty worth enough for me.
2016-08-23 20:25:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If you have been living together for six months, she will have common law rights and get half anyway unless you already have a legal arrangement drawn up.
2007-03-06 03:13:59 · answer #8 · answered by kinvadave 5 · 0⤊ 2⤋
This puzzles me too
2016-07-28 09:25:42 · answer #9 · answered by Laverne 3 · 0⤊ 0⤋
simple. put her name onthe policy, she gets mad later and kicks you out and keeps half if not all. i seen me do it!
2007-03-06 03:03:58 · answer #10 · answered by GEB434 1 · 0⤊ 0⤋