|
Joint Ownership
Posted by drumbrake (275 days ago)
I'm considering buying a flat with my partner, although we are not sure yet what percentage each will own (33% or 50%).
Should both buyer's names be listed on the provisional sales and purchase agreement, or can one be added at a later date?
Will the fact that the property be jointly owned affect the mortgage? My partner does not have a big income so they are not needed to get the mortgage, but will the bank want the mortgage to be in both names as well?
Thanks for any advice anyone can give.
Posted by lmcf (275 days ago)
For ownership, the names on the provisional must match the final. Any changes will incurr fees. You can have 2 names on the mortgage, regardless of income of both partners.
Posted by drumbrake (275 days ago)
Ok, thanks.
So regarding the percentage of ownership (33% or 50%) - is that decide with the lawyer when the final agreement is signed?
Posted by Saikunga (275 days ago)
if it is two owners - the percentage is 50/50 isn't it?
If you have a mortgage then you have to figure out who is owing the money - both (or three parties) or just one. It all comes down to who is able to put the deposit down and if everyone is sharing - you can do what you need to do to sort out your own finances - maybe you should talk to someone who can really help you.
Posted by drumbrake (275 days ago)
For ownership, we were going to decide the % on the amount we pay for the deposit. So, if my partner contributes 1/3 of the deposit, she has 33% ownership. However, if ownership has to be 50% then we each contribute half.
Legally, is there any advantage for the mortgage to be just in one person's name, or is it better to have it in both names?
Posted by Saikunga (275 days ago)
If both people ar eputting money into it on a monthly basis then you need to have both parties names on the mortgage - or organise two seperate mortgages for the same property for the two seperate people.
Legally - if only one name on the mortgage that name is responsible for the repayments and will be subject to foreclosure if they default. The other name can stop paying at any time and the mortagee will bear the brunt of the repayments.
If two names, then both parties are subject to foreclosure if they default.
you really need to talk to someone who knows more about this before going ahead
Posted by walkup (275 days ago)
only a lawyer can correctly advise you, but it is likely that each will be singly responsible for the mortgage payments in the event of a default by either.
Posted by daniellejoli (275 days ago)
I'm not sure what the situation is in HK, but I'm a UK qualified lawyer (but not property lawyer!)...and in the UK there are 2 types of ownership:
1. Joint Owners - for this, it doesn't matter if you put in 75% and he puts in 25%, you're both joint and severably liable if anything goes wrong with the property. Also if one of you dies (touch wood!) the other automatically inherits the other person's portion.
2. Tenants in Common - This means that you each own a percentage of the ownership of the property which is drawn up in an agreement eg. you can own 75% and he can own 25%. If you break up (again, touch wood!) then you can always sell your 75% onto someone else, and they can on-sell it etc. Also, if you pass away, then your 75% then unless stated otherwise in a will, your 75% will go to your next of kin. If there is any default on the property in the future on repayments etc. you will only be responsible for that 75%.
HK is based on common law, but I'm not sure if they recognise the second type of ownership. Chances are, even though you're putting different amounts in, you'll both be jointly and severably liable for 100%.
Good luck!
Posted by drumbrake (275 days ago)
Thanks danielle.
Look like Tenancy-in-common is what I'm looking for. While I will be getting legal advice soon, it's good to have some background knowledge first.
For the mortgage, hopefully rental income will cover it and other bills.
Posted by ldavy (270 days ago)
Hong Kong law is the same as the UK as regards to Joint Tenants and Tenants in Common.
|
