Different percentage ownership of house by a couple?

Saver-Rob

Thanks for the post. I've got more of an idea about it all now.

puddy

Hi, i need to know the answer to this too. we are buying a place for 136k, we are jointly taking out a mortgage of 66k between us, but he is putting 10k cash in, with me putting the rest of the cash in.

we need to get a declaration of trust set up via the solicitor, but we cant work out what percentage we both own or owe on the property and how we would word the declaration for if we split up during the period of the mortgage (13yrs) or after the period of the mortgage.

we dont of course anticipate splitting up, we (I especially) want to safeguard our own contribution in case this happens.

we will both be paying 70% of our monthly income into a joint account for the bills and mortgage etc as i earn much more than he does, we decided that was fairer than putting a set amount in

we sat at home yesterday with paper and pen, loads of attempts at division and multiplication and got very confused!!!

bob79

Saver-Rob wrote: »

So you are stating that it would need to be drawn up before we get a firm mortgage offer and go ahead with it.

I stated that you DON'T need to draw it up before you get a firm mortgage offer.

getmore4less

jenner wrote: »

Hi, i need to know the answer to this too. we are buying a place for 136k, we are jointly taking out a mortgage of 66k between us, but he is putting 10k cash in, with me putting the rest of the cash in.

we need to get a declaration of trust set up via the solicitor, but we cant work out what percentage we both own or owe on the property and how we would word the declaration for if we split up during the period of the mortgage (13yrs) or after the period of the mortgage.

we dont of course anticipate splitting up, we (I especially) want to safeguard our own contribution in case this happens.

we will both be paying 70% of our monthly income into a joint account for the bills and mortgage etc as i earn much more than he does, we decided that was fairer than putting a set amount in

we sat at home yesterday with paper and pen, loads of attempts at division and multiplication and got very confused!!!

£136 house
£66k mortgage
£10k dep1
£60k dep2

If you split the mortgage 50:50(If you don't it gets complicated)

then it is a 43/136:93/136 31.6:68.4 split (adjustemet to 1/3 2/3 might make it easier)

When you sell you split the proceed by these proportions then pay 1/2 the outstanding mortgage off each(you don't pay of the mortgage first and split the rest)

If you do any improvements to the place you should also use this split for the costs to keep things at the same % easier than trying to re value if you pay them at some other %.

This is for the asset, keeps it clean down the road and you avoid complications if you stick to the %.

How you each contribute to the living part of life can be more flexable but you have to agree that this is not to be brought up later as contributions to assets.

puddy

ive been trying to post on here all day but it wouldnt accept my post for some reason.

i wanted to say that this is really helpful and thanks very much. also, that calculation is it only for when the mortgage is paid off, or can it work during the life of the mortgage as well?

my partner is worried that if we split up and we either sell or i buy him out, he would just be left with debt as his contribution is less than the amount of half the mortgage.

i was thiinking that if i wanted to keep the property, i would buy him out, would i buy his half of the mortgage,,,,,,im v confused