The matrimonial property regime is an influential factor in the taking out of a mortgage. In the context of cohabitation, which should be preferred: buy together or separately? Indivision or SCI?
Faced with a legally poorly regulated regime, it is better to rely on the expert hands of a mortgage professional, to obtain sound advice and optimized installation.
The matrimonial property regime of cohabitation
Defined by article 515-8 of the Civil Code, cohabitation is “a de facto union, characterized by a common life with a character of stability and continuity, between two people, of different sex or of the same sex, who live-in couple. “
But beyond its definition, the legislation does not establish rules specific to this matrimonial property regime, whether at the level of income tax, in matters of inheritance or gift. No legal link exists between the two partners.
In the context of a property purchase, it is up to the cohabiting partners to establish an indivision agreement, to rule in the event of separation or death of one of the two. In other words, in the first case for sharing accommodation and in the second, for the protection of the surviving partner.
Should you borrow with a joint loan?
Like a married or PACS couple, two cohabitees can become co-borrowers of a single mortgage. The banking establishment will moreover tend to present this solution for two reasons: beyond the simplicity of its installation, it offers more security to the lender. In fact, in the event of default, he may turn to the joint co-borrower to claim the sums due.
On the borrower side, the calculation is not as favorable. If the bank studies the combined income of a married couple, that of the cohabitees will be studied separately. At the risk of having a smaller financial envelope and a commitment from each protagonist on the total amount of the loan to contract.
Should we prefer to take out two separate loans?
In cohabitation, a couple can choose to realize a separate loan. Each borrower taking out a loan up to what he can financially contribute and acting as surety for the other, up to the limit of his share. In this way, they protect their respective assets, in the event of one of them defaulting. Unfortunately, few banks allow this type of arrangement.
The most frequent solution is to use joint ownership: each protagonist owns part of the property (quota), reflecting their financial participation in the purchase. For this, it is sufficient that the names of the two borrowers appear on the sales contract.
Borrow through a Good Finance
Another solution is to borrow through a Good Finance, in accordance with article 1845 of the Civil Code. Each cohabiting partner pays a capital contribution to obtain shares. The company then proceeds to purchase, becomes the owner and makes the property available to the couple free of charge.
With a matrimonial property regime offering no legal protection, it is strongly recommended to call on a professional, to choose the solution most suited to your situation, before making your loan.
Beyond his qualities as a negotiator, a free real estate broker will also guarantee you the best financial package, while providing for cases of resale, separation or death.