Buying a house with a partner or friend

Buying a new house is a very exciting time but are you struggling to buy a house alone?

Buying a house with your partner or a friend may give you that boost to jump onto the property ladder. Living with someone can be great, you will have a larger deposit between you, making your dream home much more achievable.

Of course, the commitment is a scary thought, living with friends or a partner comes with lots of consideration and you must discuss everything thoroughly before you put down the deposit.

Living Together Agreement

Get yourself a Living Together Agreement which is a legally binding document. This is crucial to keep you protected. Each home owner should state exactly what each person will contribute to the household. This agreement will cover personal finances, ownership of the property contents, transitional arrangements, any household expenses/debs and an exit plan. This agreement is drawn up by a solicitor making it legally binding.

Who Has Ownership?

When you own a house with someone there are different options available.

“Joint Tenants” and “Tenants in Common” are the options to owning a house with someone you aren’t married to. “Joint Tenants” means you both have equal rights to the entire property and to put it politely… if you die, your half of the property automatically goes to the other person.

The other option “Tenants in Common” means that you can own different shares of the property and you can leave your share to someone else in your will. This is a great option to have if you have contributed different amounts of the deposit.

Write Down Your Priorities

Think about your must haves, what are you willing to compromise on, what is a no for you. Discuss it together to avoid clashes further down the line. It is better to get things out in the open before starting your house hunt, you may want a garden and your friend or partner may want an apartment so sit down and discuss your priorities.

Apply for the Mortgage

Both of you need to check your credit histories and see if any improvements can be made. Information and credit reports must reflect your current circumstances. Lenders allow applicants to take out a joint mortgage and they will always insist that all borrowers are jointly liable, should one of you stop paying their part.

Work Out Your Costs and Budget

It is time to start planning ahead. There is going to be a range of expenses that come with owning a house so it is good to start writing everything down starting with your income. Think about your fees and bills that you will be paying and other costs such as furnishing the home and having a fridge full of food. You could face unexpected costs so be sure to include extras.

If you have any problems or have any questions please get in touch.