Posted on 30 March 2012 by Laura
We are two unmarried partners who have been living together for 6 years and have a child. Currently renting, we owned property before but not in the UK, so here we would be considered first time buyers. We are thinking about living separately from now on, and our child will live mainly with me.
Can we buy two flats as tenants in common, with two joint residential mortgages, and both names on both titles (tenancy in common)? I would own the larger flat 90-10 share, he would own the smaller one 90-10 share. My main residence would be in the larger flat, his main residence would be in the smaller flat. Finances would be completely separate, except child maintenance payments from him. So I would cover downpayment, mortgage payments, utilities, etc on my flat and he would do the same on his.
Would the lender be willing to give us two residential mortgages (so NOT one residential and one BTL, as we would NOT let the 2nd one, but he will live in it), provided that we meet the affordability criteria? I have about 15% downpayment and he has about 15% as well, so treating both mortgages as residential is important, as none of us can raise the 25% required for second homes.
p.s. The only reason we're doing this is to be able to afford in the same area so that our daughter can have both parents close.
I am unsure what you are really trying to achieve by buying as Tenants in Common and each having an interest in the other's property? You will not be able to have 2 residential mortgages of more than 75% loan to value (LTV) and you would have to be able to afford the total combined debts, not just 90% of 1 and 10% of the other.
If you can each afford a mortgage of 85% LTV on your own, the simplest way forward would be to buy your own flats and then agree the living arrangements and access rights for your daughter. I recommend that you take independent legal advice with regards to this and also with regards to making a will with provisions for your daughter.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage and introduce you to our in house Solicitors, Rollingson's.
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