Wwyd? Mortgage question

[Wishiwasanheiress]

Met a friend for coffee yesterday, her and dh are house hunting like us. Half way through our conversation she said that when they get a mortgage she won't be on the documents. The mortgage will only be in dh name. He works, she doesn't.

To all intents and purposes their marriage looks fine, kids happy etc. I've no reason to think that they are about to implode, but this set me wondering.... If they split would she as mother have rights to the house still if her name wasn't on the deeds? She seemed to think yes. Logically, so would I but legally?

She said both sides being on it is just fashion. She doesn't earn so might as well be in his name only. That if she goes back to work they will just get a solicitor to change the deeds - can that be done? Is it costly?

Or they could get a mortgage together when they next update the mortgage or move again. They do move about every five yrs so I'm sure that would happen at some point.

Is she giving anything up she shouldn't? I feel I should council her not to do this, but I don't have anything but ' modern fashion' to use as reasons. (no legal knowledge).

What would you say?

[prh47bridge]

As they are married she is entitled to a share of the house regardless of whether or not her name is on the documents.

If she is not named on the mortgage documents the lender cannot come after her personally for any money owing to them.

[Wishiwasanheiress]

Well yes that makes sense. I don't know, my feminist hackles went up I spose. So used now to looking out for oneself so to speak I wondered if any issue might occur...

Funny my nan wouldn't have batted an eyelid. My mum if I suggested it would batter me! It hadn't actually occurred to me not to be on them.

[Wishiwasanheiress]

Thank you

[TwoFourSixOhOne]

If she's a SAHM, they would be able to borrow less for a joint mortgage than they would on one just in his name, we had the same issue with our first mortgage.

It makes no difference to who gets what in the case of divorce.

[Wishiwasanheiress]

Do u know that didn't occur to me, but you're right! Glad I didn't aibu this then tee hee

[Xenia]

What she can do is register with the Land Registry a spouse's right of occupation of the matrimonial home - a form G? If you do that and your spouse tries to go off and sell under your nose and disappear abroad with the proceeds the spouse cannot sell because the public register notes your right as a spouse to live there. It is crucial all mumsnetters who are married (not thiose just living together) where the house is not in their name register such a charge. I think it costs nothing and the form is on the Land Registry website.

Obviously I think women should work full time and out earn men so that would be my advice. If you want someone at home dusting let it be the man.

[Wishiwasanheiress]

I'd never heard of that before either. Good tip. Will do that myself!

[mumandlawyer]

Xenia is right. If your friend is not on the deeds then she should register a home rights notice with the land registry. It is very simple and costs nothing. It's not Form G it is an MH1 from memory. This will alert any lender/potential purchaser to the fact that there is an occupant with rights who is not on the legal title. If they later remortgage and your friend is financially in a better position then they can do a transfer of equity transfering the legal title from sole name to joint names - it doesn't cost much. It's correct that the way the title is held does not impact on divorce settlement.

[Wishiwasanheiress]

Blimey. Things you learn. Fascinating thank you all!

[Xenia]

Ah yes MH1 (matrimonial home 1) which I think used years ago to be a form G hence my reference to that.

Mumsnet could certainly try to publicise this to women who are married but not on the deeds of the house.

[TheCatcherInTheRye]

When we got our house I wasn't working so mortgage was in XH name. When we divorced I wanted to stay in the house but had to buy him out of his part of the equity and this was all extra costly as my name hadn't been on the mortgage.

[Xenia]

Good point although whoever's name it is in the other can still claim on a divorce IF you are married. However it may be harder to obtain a loan and do a transfer into one name.