Buying house with boyfriend

Good afternoon all.  I'm looking for some advice here.  I moved to the UK 2 years ago on a work permit.  I'll be renewing this work permit for an additional two years at the end of this month.  I've been happily dating this amazingly wonderful boy for 16 months.  I've been renting for these two years, and he owns his own house.  Next month I'll be moving in with him.  The house is fine, but it's a bit small (2 bedrooms- but one bedroom could barely fit a single bed- shoudln't be allowed to call it a bedroom if it doesn't fit a single bed)  So, we're looking for something a bit bigger. 

Found this lovely house, and if I was a normal UK citizen I could afford it.  But, since I'm considered a flight risk by the mortgage people, they'll only give me 2 times my salary, which is not nearly enough to buy it.  So, the boy and I are thinking about buying it together.  He puts 1/2 deposit (from remortaging his existing house) I put 1/2 deposit.  Even though both our names would be on the mortgage only his salary would be used in calcuations, but since the deposit will be the magic 25%, it'll be fine.

I have reservations about buying a house with someon I'm not married to.  I want to marry this person, but not now.  What if we break up, I couldn't afford the repayments by myself, nor could he.  But if we split and had to sell the house, he would have his old house (which he'll be letting during this time) and I'd be well... a bit homeless.

Am I rushing into things?  Why are the mortgage rules so retentive?  I ahve the money, I will be employeed by my compnay for the foreseeable future (in fact I own part of it)... I would like to buy the hosue on my own but I may be forced to buy with boy b/c mortgage.

I want to talk to my sisters about this- but they've never met him and so they all think I'm a bit wonky.  It's their stinking fault they haven't visited.  I dont' know what kind of response I'm looking for.  Thanks for listening to my story/rant.

Could you maybe wait until you have your ILR before buying a house?  You'll be offered more for a mortgage and probably wouldn't have to buy with your boyfriend then (or who knows...he might be your husband by then!). 

Could you draw up a legal agreement saying that in the case of a breakup you'll pay him rent on his half? Not very romantic, I know, but it might just be a good safeguard and half rent + half mortgage would still likely be affordable....

I think Lola's suggestion is a very, very good one.  See a solicitor before proceding any further.  You really, really need to have a contract drawn up to cover what can happen if you and your partner split up - I'm not saying you will, I'm just saying that a little CYA never hurt anyone - or in the event of serious illness or death.  There's actually a name for this type of contract, but I can't remember it just now.

Houses come and go on the market, but the effects on your finances could be far longer lasting.

Lola- I definetly could wait to buy a house.  Two years seems like a long time but my last two years here have flown by. 

If if put in 12.5% and he put in 12.5% (for the down payment), if we ever did split up, we'd sell the house and the profit would be split equally.  Right?  What exactly would the legal agreement say?  That we agree to play nice about it all? 

I shouldn't have to defend my life to anyone, but I'd like to have some of these issues thought out before I tell my sisters and parents about this plan.   

If if put in 12.5% and he put in 12.5% (for the down payment), if we ever did split up, we'd sell the house and the profit would be split equally.  Right?  What exactly would the legal agreement say?  That we agree to play nice about it all? 

An agreement would spell out in clear, agreed upon terms the obligations both of you must fulfill regarding the house in the event of a split up, serious illness resulting in disability, or death.  Especially as your stay in the country at this time is restricted by work permit. 

Playing nice has nothing to do with it, as it's hard to 'play nice' if you're dead or too disabled to communicate effectively, for example.

Unfortunately, unpleasant as it is, such agreements are really, really necessary when you enter into a serious, mature financial commitment such as buying a home. 

So is a will.  Of course, no one plans to die when they're young, but again, it happens unfortunately.  And a will goes a long, long way towards saving surviving family and friends additional grief. 

I'd see a solicitor asap if I were considering buy a home here under those circumstances. 

There's no need to 'justify' anything, many, many unmarried partners buy homes together, it's just being practical to safeguard what is likely your greatest financial commitment - and asset.

Okay- that makes sense.  Would the soliciter who would be handling our purchase be able to write this up?  Or would I need a seperate one for this?  Also, any idea on cost?

Do married couples write these agreements?  Or are they implied?

Married couples have to go through legal channels to no longer be legally married.  Couples who are living together don't.  So, no, I would say most married couples don't have agreements about the house - except in cases of pre-nups.

  Why are the mortgage rules so retentive? 

Would YOU lend tens of thousands of pounds to someone you werent 100% sure of?! 

(sorry... im a former mortgage advisor who gave it up after i'd finally had enough of people complaining about the rules!)   

Good luck to you!

otterpop- no need to apoligize- my dreams get ahead of my reality sometimes- its good to come back down to the ground.

 

A bit off topic, but what about married EU citizens buying property in the UK? I am not married yet but we are engaged so a marriage isn't far off. Both he and I have Swedish citizenship would we be considered a flight risk as well? We bought our flat here and this was before I gained my Swedish citizenship but had permanent residence status here. This was not a problem for our lender. Do the UK lenders not work this way, i.e. more similar to the US in this regard? Sorry to piggyback a post here if this should be it's own subject then I can repost. 

EU nationals are a different ball of wax, b/c they can remain in the UK for as long as they like.  If you are here on a work permit, however, your stay is contingent upon continued employment w/the sponsor. 

Okay thank you. I was getting a bit nervous there, it's nice to know that we will have a chance to buy.

Okay thank you. I was getting a bit nervous there, it's nice to know that we will have a chance to buy.

As long as you have suitable employment, unless you're buying in cash, to qualify it shouldn't be a problem.