tenants in common - ex-pat. Help!

[ricoeliso]

Scenario - my friend and I are buying a buy-to-let flat together. He is UK domiciled but I have recently left the UK to work in dubai. Initially, and at the advise of mortgage advisor AND solicitor, we had planned to have both our names on the mortgage (but I as a dependant because I was non-domiciled, thereby counting my salary as zero) and the deeds registered as tenants in common.

Problem - the mortgage company will not lend with my name on the mortgage (even as a dependant) nor if i am listed on the deeds (as a tenant in common). Similarly we cannot raise A Restriction on the land registry, as this also requires a tenants in common to be registered.

What, if anything, can be done? Very frustrating as my friends salary is enough to cover the lending and we have enough capital between us for the deposit. However, simply putting up 50% of the deposit and paying 50% of the costs without be listed on the deeds appears to give me no legal ownership over the flat and is therefore not an option.

Help welcome.

[des8]

Re: tenants in common - ex-pat. Help!

I'd guess that it would be possible to draw up an agreement similar to a prenuptial agreement or cohabitee agreement.
The agreement could include details about property, mortgage payments, liabilities, bank accounts and what have you.
Go back and ask your solicitor.

[dan_1207]

Re: tenants in common - ex-pat. Help!

Just ask that your solicitor draws up a declaration of trust dealing with the respective shares of you and your friend. Your beneficial interest will be that of a tenancy in common, and the legal ownership can be in your friend's sole name.

[ricoeliso]

Re: tenants in common - ex-pat. Help!

Hi, thanks for responses. So have checked further and it seems to boil down to getting a Form A restriction issued on the land registry, this way it prevents a sole proprietor who has entered into a tenants in common agreement from selling without the authorisation of a second trustee.

Taken from a legal source:

"4.4 Form A restrictions
An interest in land that arises under a trust can be protected by entering a restriction in the register. It cannot be protected by an agreed or unilateral notice.

Land Registry only enters a Form A restriction without application when registering two or more persons as proprietors of an estate in land

If a declaration of trust is made subsequently under which the parties are to hold the property as tenants in common, you must apply to enter a Form A restriction on the register."

My question is then whether it is possible to have a Form A Restricton on a land registry without disrupting the mortgage (or the mortgage company needing to know?)?

Thanks in advance for assistance!

[dan_1207]

Re: tenants in common - ex-pat. Help!

I don't see why not.