Buying a property with a partner

It is common for unmarried couples to purchase a property together with their joint incomes and assets. However, few couples realise, from a legal point of view, the potential implications if they split up. We’ve answered some frequently asked questions to help clarify what legal protections you can have in place when purchasing with a partner.

Legal and financial considerations when jointly buying a property

Before going ahead you should consider :-

• How much each of you is contributing to the deposit and outgoings after purchase.

• Will the equity be owned 50:50? If not, ensure that you enter into a co-ownership deed at the time you purchase.

• Will you hold the equity in the property as joint tenants or tenants in common?

• Whose name will the mortgage be in - a sole name or your joint names?

• Your earnings and your partner’s earnings - who will be contributing to what outgoings and in what proportion?

• Will you own the property as joint tenants or tenants in common?

Where do I stand legally if I co-own a property and we split up?

This will depend on many factors. How you own the property and whether any agreement was entered into regarding ownership when you first purchased. Whether you are married or simply cohabiting will also have an effect on legal implications and whether you have children together. See more on co-ownership disputes here.

If I move out of our joint property or we separate, will I still have to pay the mortgage?

If the mortgage is in joint names then you are still liable to pay the mortgage irrespective of whether you live in the property or not. This is why it's important to plan for this eventuality and ensure there is a process which is legally agreed. If you fail to pay towards the mortgage, your co-owner may decide to pay it in full, but if not, you will fall into arrears. It is very unlikely the lender will take any other action for quite a long time, but both owners credit rating will be damaged and further costs likely added to the overall amount owed under the mortgage as penalties and costs.

What happens if 1 or both of us lose our jobs?

If the mortgage is in joint names you are both jointly and severally liable to meet the payments. If there is a default on the mortgage the lender may come after either of you irrespective of your personal circumstances. We would advise that in the event your financial situation changes you contact your lender to discuss before defaulting on the mortgage as they may be able to offer you a payment holiday or lower payments.