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tubsolard
Posts: 31 Forumite
Hi all,
My girlfriend and I are about to buy our first house together.
She has a property to sell with a big chunk of equity to use as a deposit and I have savings to put in but her share will be about 5x the amount that I'm putting in.
We have openly talked about protecting her interest (and mine to a degree even if it is less) but unsure how to do it.
For instance, purchase value is 355k. She is putting in £105k and me £20k (we will split all solicitors fees, Stamp Duty etc and we have cash available for this also - she will pay all fees relating to the sale of her property) which leaves us a mortgage of £230k.
Half of the property value is £177,500, so less deposits, her mortgage will be £72,500 and mine will be £157,500.
I expect from here we would just say that she pays 31.52% (72,500/230,000x100) of the monthly instalments and I pay 68.48% (157,500/230,000x100) and at the end of the mortgage term, we would each own 50%.
Can it be as simple as this and do we need to sign any deed of trust forms or anything to protect each other in case we split up? I will ask our appointed solicitors but I'd like some free impartial advice before we pay for something that might not be what we are looking for.
Thanks for your help.
Tubs
Also, on a separate note I think all my other posts on here have been from when I was in 5 figure debt so it's nice to be talking about spending money for a change - much of the thanks goes to the girlfriend who is extremely prudent with money and has instilled this in me also!
My girlfriend and I are about to buy our first house together.
She has a property to sell with a big chunk of equity to use as a deposit and I have savings to put in but her share will be about 5x the amount that I'm putting in.
We have openly talked about protecting her interest (and mine to a degree even if it is less) but unsure how to do it.
For instance, purchase value is 355k. She is putting in £105k and me £20k (we will split all solicitors fees, Stamp Duty etc and we have cash available for this also - she will pay all fees relating to the sale of her property) which leaves us a mortgage of £230k.
Half of the property value is £177,500, so less deposits, her mortgage will be £72,500 and mine will be £157,500.
I expect from here we would just say that she pays 31.52% (72,500/230,000x100) of the monthly instalments and I pay 68.48% (157,500/230,000x100) and at the end of the mortgage term, we would each own 50%.
Can it be as simple as this and do we need to sign any deed of trust forms or anything to protect each other in case we split up? I will ask our appointed solicitors but I'd like some free impartial advice before we pay for something that might not be what we are looking for.
Thanks for your help.
Tubs
Also, on a separate note I think all my other posts on here have been from when I was in 5 figure debt so it's nice to be talking about spending money for a change - much of the thanks goes to the girlfriend who is extremely prudent with money and has instilled this in me also!
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Comments
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The idea of you paying more of the mortgage so that you are on equal terms at the end of the mortgage is bizarre! Normally when buying unequally you're trying to protect yourselves against the possibility of breaking up and selling the house in the short to medium term, not the long term.
A more "normal" way to set it up is to get your solicitor to draw something up which says the first £105k of the sale price is your girlfriend's, the next £20k is yours, and the rest is split 50:50. You then pay 50:50 on the mortgage going forwards.
The slight risk with this is if the market goes down and £40k is wiped off the value of the house, then you split up and sell, your girlfriend would get £85k and you would get nothing. But this is always a theoretical risk in any house purchase, and given the probabilities of a housing market crash coinciding with you splitting up with your girlfriend, I wouldn't be too worried.0 -
if you dont trust each other, maybe buying a house together is not for you both0
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Hi all,
My girlfriend and I are about to buy our first house together.
She has a property to sell with a big chunk of equity to use as a deposit and I have savings to put in but her share will be about 5x the amount that I'm putting in.
We have openly talked about protecting her interest (and mine to a degree even if it is less) but unsure how to do it.
For instance, purchase value is 355k. She is putting in £105k and me £20k (we will split all solicitors fees, Stamp Duty etc and we have cash available for this also - she will pay all fees relating to the sale of her property) which leaves us a mortgage of £230k.
Half of the property value is £177,500, so less deposits, her mortgage will be £72,500 and mine will be £157,500.
I expect from here we would just say that she pays 31.52% (72,500/230,000x100) of the monthly instalments and I pay 68.48% (157,500/230,000x100) and at the end of the mortgage term, we would each own 50%.
Can it be as simple as this and do we need to sign any deed of trust forms or anything to protect each other in case we split up? I will ask our appointed solicitors but I'd like some free impartial advice before we pay for something that might not be what we are looking for.
Thanks for your help.
Tubs
Also, on a separate note I think all my other posts on here have been from when I was in 5 figure debt so it's nice to be talking about spending money for a change - much of the thanks goes to the girlfriend who is extremely prudent with money and has instilled this in me also!
To be honest, either you trust eachother to do the right thing should you break up. IE Sell and split equitably.
Or you don't, in which case don't get tied down to a mortgage together.0 -
Unequal deposits from co-habiting, unmarried couples has been done to death on the forum. Use the search function and you will find numerous threads by people in a similar situation as yourself and the debates that go along with them.0
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Unequal deposits from co-habiting, unmarried couples has been done to death on the forum. Use the search function and you will find numerous threads by people in a similar situation as yourself and the debates that go along with them.
Perhaps it's the pessimist in me, but reading the "Help my ex wont sell the house" thread for the 200th time makes me wonder if it's worth the hassle
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If you're only going to respond to give advice about criticise our relationship then please don't waste any more of our time.
I am naïve in the facts and protocol surrounding mortgages as I've never had one before so forgive me if my understanding of how it might work financially is wrong, hence why I'm on here asking.
I did look at the forum and my key words didn't return any useful threads but I'll do it again and see what I can find.0 -
If you're only going to respond to give advice about criticise our relationship then please don't waste any more of our time.
I am naïve in the facts and protocol surrounding mortgages as I've never had one before so forgive me if my understanding of how it might work financially is wrong, hence why I'm on here asking.
I did look at the forum and my key words didn't return any useful threads but I'll do it again and see what I can find.
ooooooooooooooo, touched a nerve0 -
I'm not sure it's worth the hassle if I were to refuse to buy a house with her either!
That wasn't quite my point.
If you or she think that the other cannot be trusted to be reasonable and equitable in case of relationship breakdown (which to be fair is statistically likely) then you should either accept the chance of a legal battle (which still happens even with a deed of trust) or you make an alternate choice. Perhaps to rent.
Basically being married prevents some of this, as the divorce typically sorts this out. Until that point everything is jointly owned, there is no my or yours, only ours.
You and your girlfriend still have that mine and yours mentality, so it seems crazy to me (and it's just an opinion) that you would buy a house together.
Now it's very common, but so are threads like this, threads about break ups after 5,10,20, 50 years, and threads about forcing a sale.0 -
If you're only going to respond to give advice about criticise our relationship then please don't waste any more of our time.
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I'll try and explain myself a bit better next time!0
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