Buying a home - should I leave my partner off the S&P?

[flashhog]

Hey team,

My partner and I are about to sign a S&P for a house we're interested in (FHB's). I am currently the sole income earner of the house and we have no dependents. I am confident in my ability to get finance by myself.

I'd like to know what the benefits/drawbacks are of putting both mine and my partners name on the house, if she won't make any appreciable difference to the borrowing potential.

I was thinking that perhaps down the line, she may be able to use the FHB grants if she doesn't put her name on the property. We've been together for 6 years and have a healthy relationship, with completely joint finances and the house would be relationship property anyway.

Any insights here?

 

[lia1234]

@flashhog Can confirm she will have FHB rights later on if she isn't on the s&p agreement.

Also, if she owns this property but doesn't use the FHB grant then she could apply and use the FHB grant for her next property if it meets the criteria.

Essentially, you can use the FHB grant once, regardless of whether you've owned a home previously.

 

[flashhog]

@lia1234 Are you sure about that? So if we don't jointly apply for the grant with this house, you think we could jointly apply for the grant on another?

 

[lia1234]

@flashhog When you say jointly, you mean two separate applications for the same property?

You could apply for this one, both purchase the house, then she could apply for the grant on the next one. Or vice versa. That's my interpretation of Kainga Ora website. Remember though, you have to meet the criteria. Click here https://kaingaora.govt.nz/home-owne...Y0c1qnf7ovjznPjJmYkaAvvYEALw_wcB&gclsrc=aw.ds You're looking for if you've previously owned a property in the am i eligible section.

 

[nigheandhonn]

@flashhog Not so sure thats true, I have a co worker whoms partner is on the deed of her fathers house and just got declined for a FHB grant even though no money changed hands when she was added to the title of the dads house.

Not saying yay or nay just that you should check with a lawyer or mortgage manager that knows the anwser.

 

[lia1234]

@nigheandhonn If no money changed hands and was just added to the title can you tell me where the sale was and why Kainga Ora would give them a FHB grant? That makes no sense.

 

[worldbandy]

@lia1234 This - i called simplicity recently as we can afford to buy with the banks but not simplicity. If we buy and put the house in my name, simplicity will consider my wife a first home buyer. There is something that needs to be done legally (simplicity mentioned this and it's rather complicated) but definitely worth it. Only issue is the bank may not be happy with only 1 person's name on the title/mortgage.

 

[tessy40]

@worldbandy Are you saying simplicity will only give you a loan if the two of you are buying? Whereas banks may offer you alone a loan, preserving her fhb benefits for later?

 

[worldbandy]

@tessy40 Correct. Excuse the grammar.

 

[notalone32]

@lia1234 Check with your lawyer on this. But in my case my husband was able to “buy” into my house later on and he was able to withdraw KiwiSaver and FHB grant.

So potentially you could plan to do something like that in the future.

 

[superboyian]

@flashhog You may be confident in your ability, but do you actually HAVE finance approved before you sign the S&P? That may have more impact (for finance) than simply a legal position, so I’d be getting that sorted first.

 

[flashhog]

@superboyian Conditional subject to finance. Mortgage broker is confident and I'm also borrowing about 50% of what most mortgage calculators are stating I can. My repayments will be lower than what I'm currently spending on rent and savings for a deposit.

 

[lukeplyr83]

@flashhog

about to sign a S&P for a house we're interested in (FHB's).

am confident in my ability to get finance

Please tell me you have spoken to the bank already before signing the S&P. If not, put as long a date as possible for conditions to be met and include a subject to finance clause

 

[flashhog]

@lukeplyr83 I've spoken to a mortgage broker and they're confident. We're submitting paperwork now and have a 3 week finance clause, alongside a 2 week builders report and a 1 week clause for a solicitor to veto the agreement.

 

[katrina174]

@flashhog Please speak to a lawyer, not Reddit

Xoxo

 

[flashhog]

@katrina174 I only take legal advice from reddit. Lawyers too expensive.

 

[jacqueline92]

@flashhog In the long run the opposite is more likely to be true lmao

 

[flashhog]

@jacqueline92 na

 

[mrswhite13]

@flashhog Faarkn idiot

 

[jeff2911]

@flashhog In that case my advice is get a separation agreement sorted before you buy the house just in case something does go wrong and shit gets nasty.

Happened to me I thought I was with my soulmate but the breakup dragged on and he drained my pockets by wasting lawyers' time and fucking around with the house sale. Good people in good relationships can have things happen that change their brain like trauma or brain injury.

If you need to sell it in a hurry and for some reason you have broken up and found yourselves not on good terms you'll need her permission and sign off for every decision to do with the house sale. (If she's down as part owner of the house I mean)

Everyone thinks it won't happen to them that a partner will rip you off, but it's common.