Joint mortgage but NOT 50/50 owned

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dal

dal

dal

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Hi all, me and my GF are interested in a house for sale the it's on the market for £135-145K ( guide price) - hoping to get it for £130 K.

I have £70K to put in and she has less than a grand so obviously it will not be 50/50. I see two possible ways of an agreement which is fair.

1. I own 99% of the property
2. We have an agreement drawn up by a solicitor so that in the event of us splitting up I take my £70K back, she has her money back and the remainder is split 50/50

I will see a solicitor about this before we even put a offer in but I'm just wanting to know what OCUK GD think of this.

Also what type of solicitor would I be better off seeing a conveyancing or family solicitor ( sorry if this is a daft question ).
 
This is a normal process when buying a house. Fees will be about £110 more for this type of agreement
 
I'm currently doing #2 with my gf and her parents. They are putting forward around £40k where as I am simply paying for a few of the fees. If we break up then 40k goes back to them and I'll take the fee's back then we split whatever is left 50/50
 
I do #1 with my GF. Perfectly normal way to do it. Capital gains should IMO be split in proportion to ownership.
 
I did something similar with my other half, we eventually ended up with a charge in my favour for £n to be paid upon sale of the house. It shows up similarly to the mortgage charge on the land registry entry.
 
Me and my gf have done similar. You don't get a join mortgage, you go tenants in common (unless your married it's joint).

We got a declaration of trust drafted up by our solicitor which states, i own X of the house and she owns Y of the house. When we sell we both get back what we put in (deposit wise).

But as we are doing mortgage repayments and everything else 50/50 anything we earn on the house over the sell price is split 50/50.

You want to see a conveyancer solicitor
Sorted!
 
I believe this is further complicated if you have a child/children. This is something I need to look in to.
 
What your doing is perfectly normal.

Only traps are marriage which can change the game in the event of divorce or will definitely change the game if you have had children by the time it goes belly up.
 
Jez said:
I do #1 with my GF. Perfectly normal way to do it. Capital gains should IMO be split in proportion to ownership.
Click to expand...

I disagree on the basis that there should be shared responsibility. If you live with your partner and earn more cash then it is generally true that you do more hours and/or have more responsibility and therefore when you are working they are doing the stuff that needs doing.

That's true of my situation anyway.
 
I do not see why the above should in any way at all affect the capital gains you will both achieve based on your initial investment?

Its quite fair, i buy 75%, i pay 75% of all maintenance and renovation cost, i receive 75% of the proceeds upon sale.
 
Don't think it's always that simple really, there is the initial outlay, the cost of mortgage, cost of maintenance, cost of living and utilities etc. and the proportions spent on the mortgage may be different per person as well. Also she is paying closer to 1.5% of the deposit than 1%

You also have to consider that the amount you get back from selling the property may be less than you put in, although the good thing is negative equity looks rather unlikely given your LTV.

In short, ask the solicitor
 
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How I would do the OP numbers (based on £140k purchase price):

OP puts in £70k (owns 50%)
Gf puts in £1k (owns 0.7%)
Mortgage of £69k (49.3%)

Split the mortgage payments 50/50, and upon selling:

OP = 74.65%
GF = 25.35%
 
Moses said:
But would that work with their situation? I mean, would he put forward 99% of the deposit, and pay 99% of the mortgage... or are they looking to share the cost of the mortgage payments equally?
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No I wouldnt really pay 99% of the mortgage I would pay somthing like about 70% of the mortgage.

We are renting at the moment and she pays around 30% of the household bills, it would be about the same if we bought a place.

I thought #2 would be fairer to her as she would have paid a fair amount of money into the place especially if we have lived there a number of years but I do agree to some extent about capital gains being in proportion to ownership.
 
krooton said:
How I would do the OP numbers (based on £140k purchase price):

OP puts in £70k (owns 50%)
Gf puts in £1k (owns 0.7%)
Mortgage of £69k (49.3%)

Split the mortgage payments 50/50, and upon selling:

OP = 74.65%
GF = 25.35%
Click to expand...

the purchase price is irrelevant though. The bank owns the other 49.3% so the split is between the investment that the two of them have each put in. If they are both paying 50% of the mortgage then this split changes every month, with OP's share getting proportionally smaller and smaller and GF's getting bigger.

e.g. if they sold after one month (ignoring costs of moving etc.) the GF would still only have paid 1.5% of what the OP paid, but if they sold after paying off the mortgage totally, the GF would have put more like 25% as you say.
 
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