primary buyer vs secondary buyer

confuzed

Hi

what is difference b/w primary applicant and secondary applicant, Do they get same share of property if in case (some thing goes wrong) they have to split in future.

johnnyskeleton

For the purposes of a mortgage it makes no difference. The bank will demand payment from all persons who are named on the mortgage, and will presume that they are all liable equally. This is equally true if someone puts their name on the account as a guarantor.

However, the banks have no say in relation to the division of property, so as long as they are paid by somebody, they presume that they were paid by both parties equally and any disputes about this are a matter for the parties.

Outside of the banking perspective, there is no such thing as primary and secondary applicants (or purchasors to use the correct term). If two people buy a property they can buy as joint tenants holding the property in equal shares, or as tenants in common, holding the property in different proportions.

Where a married couple split up, the property will be divided or apportioned on the basis of making reasonable provision for both spouses. This as you can imagine varies widely.

Where an unmaried couple split up it is more complicated, and it will often be divided by agreement between the parties as opposed to bringing it to court. Typically, they will seek a share in the property proportionate to what they paid off the property (i.e. deposit and mortgage repayments). However this gets more complicated where (as in the current market) they may have to sell at a loss. In that situation, it is unclear whether they should both pay an equal share of the amount outstanding to the bank, or should they pay according to what they have put into the property. There are also other factors that must be taken into consideration i.e. did one party spend money on home improvements, bills, etc, while the other just paid the mortgage, did one of them make any promises to the other, or was there an agreement as to how it should be divided on sale, etc.

I'm taking it that you are either just curious about this or that you're looking into the possibility in a casual way. If you are in such a position, or about to get into such a position, you really should contact a solicitor, as while they might charge you a few hundred euro to give you some advice, they could save you thousands if you were to get into such a situation.

confuzed

Thanks JS. Just for knowledge sake.