In France, nearly 30 million people live in couples. 72% of them opted for marriage while 21% chose common-law, more commonly known as cohabitation. This type of union has some drawbacks when it comes to acquiring real estate, common-law partners having no legal protection and cannot inherit from their partner if the latter dies. Therefore, how to borrow when you are in a cohabitation?
No legal protection for cohabitees
Buying when you are neither married nor PACS presents some risks that should not be overlooked. Indeed, if two cohabiting persons decide to buy a property and to put this property in the name of one of the two members of the couple, the second will not be entitled to any part of the accommodation in the event of separation or death of the first. The status of cohabiting partner does not offer any legal protection allowing a spouse to be considered as the heir of his partner.
Fortunately, solutions exist and allow both spouses to both own a share of the property.
A safer solution to become an owner: joint purchase
Buying in joint possession allows spouses who are neither PACS nor married to be considered as undivided owners of their housing, in equal shares or not. The situations mentioned above (separation, death) do not change anything: neither of the two spouses can be dispossessed of their share if the purchase of the property was made in joint possession. Everyone owns a share of the accommodation according to the capital they have invested themselves. In fact, many couples declare having bought their housing in equal parts, even if the notaries advise rather to indicate the level of actual contribution of each of the spouses to protect themselves from any subsequent conflict.
It is important to know that in the event of an undivided purchase, the two partners are jointly liable for all the charges relating to the accommodation, namely taxes, various taxes and the mortgage, even if it has not been subscribed. only by a single partner.
Generally, banks advise borrowers to take out a loan jointly. They then become co-borrowers and are jointly liable for loan repayments, even in the event of separation or financial difficulties for one of the two spouses.
In the event of the death of one of the two partners, the remaining spouse does not inherit the second part of the accommodation, unless a will stipulates that he is in fact inheriting it legally. He must then pay the prohibitive inheritance costs of 60% (without the notary fees).