Co-ownership and mortgage — common situations
Buying property together with a partner, family member or friend? Co-ownership has specific rules for mortgages — and potential traps when relationship ends.
Forms of co-ownership
- Joint marital property — automatic for married couples, equal shares
- Co-ownership in shares (podílové spoluvlastnictví) — explicit shares (e.g., 50/50 or 70/30), can be different in size
- Whole-property co-ownership (společné jmění) — for unmarried couples it doesn't exist; must use share-based
How banks handle co-ownership
All co-owners must be co-applicants on the mortgage. Bank checks each one's creditworthiness; combined income enters DSTI/DTI.
If one co-owner doesn't qualify, the bank may refuse — even if others are strong.
When relationship ends
Co-ownership creates conflict if priorities diverge. Options:
- Buyout — one party buys the other's share, refinances mortgage to solo
- Sale — sell to third party, split proceeds
- Court-ordered sale — if you can't agree
Always document agreements about contributions in writing — courts use these in disputes.
FAQ
Can unmarried couples buy together?
Yes, as co-owners in shares (typically 50/50). Both must be co-applicants on mortgage. If you split, the property is treated like any other co-owned asset.
What if one co-owner stops paying mortgage?
All co-applicants are jointly liable to the bank. The other(s) must pay the full installment to avoid default, then sue the non-paying party for their share.
Can I add my partner to the mortgage later?
Yes, but it requires bank approval and full reassessment. Often done at refinancing time.