Deciding to live together is a big step in a relationship. But prepare for even greater commitment if you buy property with your loved one.
It sounds obvious, but you both need to be sure that you stand a good chance of living together happily. Unless religious or moral reasons prevent it, there really is only one way to find out and that is to try it. Many couples rent together before buying. Once you can cope with the way she turns the bathroom into a beauty parlour or his 2000 AD comic collection and you are ready to buy together, the fun really starts.
Buying together
Regardless of whether either of you have bought property before, you will need to start with a lot of talking and even more saving. Make sure you are buying together for the right reasons and both have the same expectations about your new home. It may mean that one or both of you has to make sacrifices if costs or practicalities require flexibility.
Most mortgage lenders will require some sort of deposit which could be between 3% and 15% but the more you save, the cheaper your mortgage should be. Other costs include legal fees, estate agent fees and moving expenses. Not to mention all the new furniture and paint you are bound to want in the first few months. Whoever said 'two can live as cheaply as one' obviously never moved house very often.
Work out what you can realistically afford by reviewing your joint budget. Deduct all your outgoings - including everything from bills to gym membership and holidays - from your joint monthly income. You should have some disposable income left at the end to help pay off any debts and save towards your new home. If one of you earns more and is prepared to pay more then make sure you are both comfortable with this.
Where there's a will
Couples buying together can be joint tenants or tenants in common. In the former situation both get an equal share, in the latter it is stated how much each is entitled to. More importantly, perhaps, beneficial joint tenants automatically get their partner's share of the property when they die but tenants in common can leave their half to whoever they wish. Once both your names are on the Land Registry or title deeds, no one else can force you to leave or sell the property without getting your agreement or a court order and loans cannot be taken out against the property without your agreement.
You may think that making a will is just for old people but it is essential that you both take out a will when you buy your new home. Not only will this mean that you can leave your share of the property to your partner or spouse and any children plus avoid a nightmarish tangle of paperwork, it can help protect you money and your home from inheritance tax.
If you are married.....
Marriage may not be as fashionable as it once was. But owning a home with your partner is much less risky and complicated when you are married as this automatically entitles you to rights over the home you share. In the sad event of a divorce, if you cannot agree on a financial split then the court will usually divide all assets in whatever way they think best regardless of who actually owns them.
If you are not married.......
It may be unthinkable that you will ever be anything other than lovebirds. But getting legal protection for yourself and your finances if you buy with a boyfriend or girlfriend is a must for all wise owls.
Moving in and contributing to your partner's mortgage works fine for many people. However, if you are not named on the Land Registry documents or title deeds, your rights are seriously affected. It will be difficult for you to get any money back if you split up, regardless of how long you have contributed to the mortgage. You may be able to get some sort of settlement through the courts but this is by no means guaranteed. Protect yourselves with a legal co-habitation agreement. It will cost between £200 and £300 each and should specify what happens to the money you have contributed should you split up at a later date.
After all, we cannot all be as lucky as Zsa Zsa Gabor, who once said: 'I am a marvellous housekeeper. Every time I leave a man I keep his house'.
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