Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Boyfriend & Girlfriend buying house ... advice on what to watch for.

Options
  • 21-10-2020 5:03pm
    #1
    Masala
    Registered Users Posts: 3,462 ✭✭✭


    Hi..... enquiring for a friend who has a story as follows as follows - being the father of Girl A;

    Boy A has a €100k inheritance that is sitting in his bank. He is not currently working as he is in year 2 of a 3 yr Masters course.

    He and Girl A are looking at a €200k house.

    Girl A is going to get a mortgage for €100k as she has €25 savings for kitchen + white goods etc if they proceed. Boy A will put in his €100k to balance the sale price.

    My friend is worried if this will work.....so the query is

    1. Will she get a mortgage like this arrangement (the 2 of them being listed as the owner of the house)
    2. Boy A will insist on being on the deeds to protect his investment
    3.Girl A will pay her mortgage . Boy A pays nothing towards Mortgage. Don't know what else Boy A will contribute to house.
    3. Marriage is planned down the line ... but house has come on market that they feel they should make a move on.

    Anyone ever in same circumstance that can give some advice to pass on.


Comments

  • Options
    #2
    hullaballoo
    Administrators, Entertainment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 18,710 Admin ✭✭✭✭✭hullaballoo


    Assuming the numbers are accurate enough, they are planning on both putting up half of the purchase price of the house.

    Underlying your post seems to be a fear that the girl will be left in the lurch somehow by the boy quite rightly wanting to be sure of his interest. Not that the name of the deeds is really going to do that for him anyway but you're seemingly disinterested in his position.

    I don't see why the girl's father is worried by a 50:50 arrangement but presumably there's an alternative aspect to it. That or some detail missing.

    Edit: I was initially a bit confused about the €25 for white goods but I assume you mean €25k? You have said though that she is planning on obtaining a mortgage "as she has" €25k for white goods. What is the connection between the mortgage and the €25k as she sees it?


  • Options
    #3
    cubatahavana
    Registered Users Posts: 990 ✭✭✭cubatahavana


    Masala wrote: »
    Hi..... enquiring for a friend who has a story as follows as follows - being the father of Girl A;

    Boy A has a €100k inheritance that is sitting in his bank. He is not currently working as he is in year 2 of a 3 yr Masters course.

    He and Girl A are looking at a €200k house.

    Girl A is going to get a mortgage for €100k as she has €25 savings for kitchen + white goods etc if they proceed. Boy A will put in his €100k to balance the sale price.

    My friend is worried if this will work.....so the query is

    1. Will she get a mortgage like this arrangement (the 2 of them being listed as the owner of the house)
    2. Boy A will insist on being on the deeds to protect his investment
    3.Girl A will pay her mortgage . Boy A pays nothing towards Mortgage. Don't know what else Boy A will contribute to house.
    3. Marriage is planned down the line ... but house has come on market that they feel they should make a move on.

    Anyone ever in same circumstance that can give some advice to pass on.

    I purchased an apartment with my ex-girlfriend (I know, right). I put 80% of the deposit, she put 20%. On paper, I owned more than 50% of the property. When we broke up, though, the property was in negative equity (bought in 2008), so we decided that I will keep the property and live in it. I was able to change the deeds of the apartment and put it on my name.

    1 - Mortgage I suppose will need to be on both names, a solicitor should be ok to create a private contract between the purchasers (that's what we did). We added a clause that the house could not be sold unless both of us agreed
    2 - His name will be in the mortgage and in the deeds
    3 - When they get married, you can throw all the contract to the bin. Both will own it

    Advice is, it can get messy!!!


  • Options
    #4
    RunningFlyer
    Registered Users Posts: 383 ✭✭RunningFlyer


    They will have to take out a joint mortgage anyway so will both be on the deeds, but from the above it looks like Girl A is going to come off worse financially with it all. He is putting in €100k but she will be putting in €25k towards furnishing plus paying the mortgage by herself which will not equal €100k when interest is taken into account, so she will easily end up investing over €150k into the house vs. his €100k. I guess she would be aware of this, but I would be skeptical with the above situation especially if he is already thinking he won't have to pay anything towards the house once he puts down the €100k, job or no job.

    As above, once they're married all bets are off!

    Edit: just to add that my post was assuming that the mortgage would be repaid fully without incident purely from the capital point-of-view, but as posts below highlight there’s huge risks involved for the guy if the mortgage is not paid.


  • Options
    #5
    laserlad2010
    Registered Users Posts: 514 ✭✭✭laserlad2010


    This is not advisable as the boy leaves himself open to exploitation.

    They should both put up an equal amount and pay the mortgage equally.
    That way the girl cannot claim he is "not on the mortgage" or kick him out after a split.

    I would be worried he would end up contributing to the mortgage repayment also therefore paying more than 50%.

    Keep it equal. She pays 25k deposit, he pays 25k deposit.


  • Options
    #6
    yaboya1
    Registered Users Posts: 4,610 ✭✭✭yaboya1


    Boy A will be putting his €100k savings into the house and will liable for the €100k mortgage if Girl A decides not to pay it.
    So in that scenario it's unfair on him.


  • Advertisement
  • Options
    #7
    LillySV
    Registered Users Posts: 1,750 ✭✭✭LillySV


    RunningFlyer wrote: »
    They will have to take out a joint mortgage anyway so will both be on the deeds, but from the above it looks like Girl A is going to come off worse financially with it all. He is putting in €100k but she will be putting in €25k towards furnishing plus paying the mortgage by herself which will not equal €100k when interest is taken into account, so she will easily end up investing over €150k into the house vs. his €100k. I guess she would be aware of this, but I would be skeptical with the above situation especially if he is already thinking he won't have to pay anything towards the house once he puts down the €100k, job or no job.

    As above, once they're married all bets are off!

    This is exactly what I was thinking ... they’re not like for like at all... unless they are good while together and very very likely to be married soon, I wouldn’t be going done that route


  • Options
    #8
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    I think both should put in 25k as a deposit but wait until boy A has a job and they can apply for a mortgage on equal terms.


  • Options
    #9
    DubCount
    Registered Users Posts: 1,065 ✭✭✭DubCount


    I think boy A should talk to a solicitor to find a way to protect himself if boy A and girl A split up in a few years time when girl A runs off with boy B .


  • Options
    #10
    silent_spark
    Registered Users Posts: 461 ✭✭silent_spark


    The boy in this scenario is really putting himself at risk. I would agree with the previous suggestion that they should both put in €25,000 or whatever she can manage. If he even had a part-time job it would add to their joint capacity to borrow 3.5 times their earnings.


  • Options
    #11
    Donald Trump
    Registered Users Posts: 19,027 ✭✭✭✭Donald Trump


    No way would I put up 100k of a mortgage upfront and then enter into a joint mortgage for the rest hoping that the other person will pay the monthly repayments. Not unless I was happy with the risk of losing most or all of that 100k.

    If house prices crash in one year and the house goes from 200k to 100k and they split up and mortgage stops getting paid. Then eventually the house is seized and sold to pay off the remaining mortgage then he suffers all the loss.

    To the person saying about her having to nominally pay back more because of the interest - that is nonsensical and that is her own responsibility.

    Tell him to start running. Once he starts running, tell him to keep running. Then after a while tell him to run even faster and to not be looking back behind him.


  • Advertisement
  • Options
    #12
    PhoenixParker
    Registered Users Posts: 2,671 ✭✭✭PhoenixParker


    What other people have said.

    Also if they're moving in together and planning marriage the whole "she's paying the mortgage and he has nothing to do with it" is kinda redundant. Is he going to swan off on a holiday by himself if she can't afford it due to the mortgage? Unless their very different to most couples their spending will be joint by default.

    Put in 25k each, let him furnish etc. the place while she pays the mortgage and probably somewhat supports them both for the first 18 months or so until he gets a job. Their relative contributions will be fairly even at that point. The difference in interest costs between a 150k and 100k mortgage will be pretty negligible.

    The total spend will be similar.


  • Options
    #13
    Donald Trump
    Registered Users Posts: 19,027 ✭✭✭✭Donald Trump


    PhoenixParker wrote: »
    What other people have said.

    Also if they're moving in together and planning marriage the whole "she's paying the mortgage and he has nothing to do with it" is kinda redundant. Is he going to swan off on a holiday by himself if she can't afford it due to the mortgage? Unless their very different to most couples their spending will be joint by default.

    Put in 25k each, let him furnish etc. the place while she pays the mortgage and probably somewhat supports them both for the first 18 months or so until he gets a job. Their relative contributions will be fairly even at that point. The difference in interest costs between a 150k and 100k mortgage will be pretty negligible.

    The total spend




    He can pay his half of the mortgage out of his savings until he starts working himself. Maybe he could do some sort of a deal with the bank to deposit 20k or whatever with them as collateral. I don't know whether retail banks would/can do that kind of deal though.


  • Options
    #14
    listermint
    Registered Users Posts: 33,616 ✭✭✭✭listermint


    I think they both need to get steady jobs first . Leave the money where it is and start renting together. Then see where that goes first.

    A house is an incredible commitment and this already sounds like a terrible starting point.


  • Options
    #15
    Redrocket
    Registered Users Posts: 2,214 ✭✭✭Redrocket


    Both put up 15k for deposit, 30k deposit, 15% LTV.
    Both have 10k left over for furniture. Both have to pay mortgage equally which he will do out of savings. Both are then equally liable for mortgage and both are on the deeds.
    Sounds like the feeling of equality is needed in this relationship.

    Solicitor will need 4-5k to finish the transaction which is not covered so far in thread.


    Real advice on what to watch for? Babies.


  • Options
    #16
    yaboya1
    Registered Users Posts: 4,610 ✭✭✭yaboya1


    Redrocket wrote: »
    Both put up 15k for deposit, 30k deposit, 15% LTV.
    Both have 10k left over for furniture. Both have to pay mortgage equally which he will do out of savings. Both are then equally liable for mortgage and both are on the deeds.
    Sounds like the feeling of equality is needed in this relationship.

    Solicitor will need 4-5k to finish the transaction which is not covered so far in thread.


    Real advice on what to watch for? Babies.

    85% LTV


Advertisement