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Unequel Deposit Amount - Joint Mortgage?

24

Comments

  • tubsolard
    tubsolard Posts: 31 Forumite
    jonmoneybags wrote: »
    ooooooooooooooo, touched a nerve



    I'm not embarrassed that a "nerve" of mine is my relationship with my girlfriend it being questioned by a stranger.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    tubsolard wrote: »
    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'll try and explain myself a bit better next time!



    1: Public forum, if you don't like what's said go and pay for professional advice
    2: I'm not criticising YOUR relationship, I'm saying that about anyone in the same position
    3: Split equity however you want. Pay whatever percentages you want. If you don't break up it wont matter, if you do - see my above point....
  • MyOnlyPost
    MyOnlyPost Posts: 1,562 Forumite
    tubsolard wrote: »
    If you're only going to respond to give advice about criticise our relationship then please don't waste any more of our time.

    Don't think of it as criticizing your relationship, but advice from those that have been there and done it. I have bought a house with three different women over my lifetime, each time convinced that this relationship was "the one". I disagree with the others, it's all very well saying that you should trust each other to sort it out ammicably, but if anything were to happen in the future then who knows what kind of hurt or vengance would be present when trying to discuss financial separation.

    Personally I think that when dividing the ownership your partner should be entitled to assett appreciation (or possible depreciation) on her total investment, so just giving her her £105k, you your £20k and splitting the rest 50/50 is depriving her of a return on her capital and is effectively giving you an interest free loan. Instead I recommend that you each pay half the mortgage and split the ownership of the property thus

    Houes value £355k
    Mortgage value £230k
    Her Deposit £105k
    Your Deposit £20k

    Your share = ((Half mortgage + 20k ) / (355k))*100 = 38%
    Her Share = ((Half mortgage + 105k) / (355k))* 100 = 62%

    In the future you could pay down lump sums of the mortgage when able to "buy" some equity back
    It may sometimes seem like I can't spell, I can, I just can't type
  • tubsolard
    tubsolard Posts: 31 Forumite
    Guest101 wrote: »
    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.





    If both of us are comfortable and happy to sign something or come to an official, signed agreement regarding the ownership prior to committing then I don't see what the big deal is? Any question over trust, ownership issues etc are ones for us to agree/disagree on privately I'm just curious as to what options are in front of us.


    I'll accept of course that one option is not to buy a house together, but aside from that, what other options assuming we are going to buy! That's the question.
  • jonmoneybags
    jonmoneybags Posts: 311 Forumite
    tubsolard wrote: »
    I'm not embarrassed that a "nerve" of mine is my relationship with my girlfriend it being questioned by a stranger.

    dont post on a public forum then, ask your mum
  • tubsolard
    tubsolard Posts: 31 Forumite
    MyOnlyPost wrote: »
    Don't think of it as criticizing your relationship, but advice from those that have been there and done it. I have bought a house with three different women over my lifetime, each time convinced that this relationship was "the one". I disagree with the others, it's all very well saying that you should trust each other to sort it out ammicably, but if anything were to happen in the future then who knows what kind of hurt or vengance would be present when trying to discuss financial separation.

    Personally I think that when dividing the ownership your partner should be entitled to assett appreciation (or possible depreciation) on her total investment, so just giving her her £105k, you your £20k and splitting the rest 50/50 is depriving her of a return on her capital and is effectively giving you an interest free loan. Instead I recommend that you each pay half the mortgage and split the ownership of the property thus

    Houes value £355k
    Mortgage value £230k
    Her Deposit £105k
    Your Deposit £20k

    Your share = ((Half mortgage + 20k ) / (355k))*100 = 38%
    Her Share = ((Half mortgage + 105k) / (355k))* 100 = 62%

    In the future you could pay down lump sums of the mortgage when able to "buy" some equity back



    Thank you. This might be the way to look at it and I'd be fine with this method - hopefully she hasn't got too used to the idea of only having to pay 38% of the mortgage repayments yet as per our initial idea!
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    tubsolard wrote: »
    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.

    Really? Just searching for the word "unequal" brings up all these threads:

    http://forums.moneysavingexpert.com/search.php?searchid=171534868
  • tubsolard
    tubsolard Posts: 31 Forumite
    jonmoneybags wrote: »
    dont post on a public forum then, ask your mum



    And there was me thinking that I might have been acting a little childishly...
  • tubsolard
    tubsolard Posts: 31 Forumite
    Pixie5740 wrote: »
    Really? Just searching for the word "unequal" brings up all these threads:

    http://forums.moneysavingexpert.com/search.php?searchid=171534868



    Thanks, I'll try again.
    I tried "Unequel Mortgage" and that didn't really bring anything up - didn't realise I needed to be more vague.
  • tubsolard
    tubsolard Posts: 31 Forumite
    tubsolard wrote: »
    Thanks, I'll try again.
    I tried "Unequel Mortgage" and that didn't really bring anything up - didn't realise I needed to be more vague.



    Probably helps also if I spell "unequal" correctly!
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