Q My boyfriend and I bought a flat together a few years ago. We both contribute to the mortgage, but he put up the money for the initial deposit. Because of this, we arranged with our solicitor to be tenants in common, with each of us owning a percentage of the flat.
I recently came into some money from a legacy, and would like to use it to increase my share in the flat. My boyfriend is happy for me to do this, but how should we go about it?
A As tenants in common, you already recognise that it’s possible to specify the amount of investment each of you has in your flat. This would have been recorded on a deed of trust and kept with your ownership documents.
There are two ways you can legally alter this record – either a new deed of trust can be drawn up, or the majority holder, in this case your boyfriend, can sign over a portion of his percentage to you in writing. Which is most appropriate depends on your individual situation, but your solicitor will be able to advise you on the best course of action.
Another issue to consider is how you use the money you’ve been left. You may wish to give the money to your boyfriend directly, but it’s worth investigating whether you can make an overpayment on your mortgage. Many mortgages carry penalties for doing this, but if you have a CAM (current account mortgage) or offset mortgage, making an overpayment could shorten the life of your loan and save you a lot of money in interest.
Q I’m buying a house and my solicitor has asked for money for a ‘local authority search’. What exactly is this and what does he expect to find out?
A This search will highlight any issues the local authority is aware of that concern the property you are buying. These include planning permissions that have been applied for and any notices that have been served on the property. The search will also investigate the council’s planning policy and maintenance schedules for public highways and drains that may affect the land you are buying. If these inquiries bring to light any new queries, your solicitor will also pursue these or suggest further searches.
The searches a solicitor undertakes may seem unnecessarily time consuming, but they are done to protect you, and sometimes also your lender, from making an unworthy investment. Legally, you are buying a property ‘as seen’, and any responsibility for unforeseen problems rests with you. Because of this, it’s in your best interests to make sure you have as much information about the house as possible before you exchange contracts.