Couple buying but one person pays deposit?

chriss1979

Is there a proper term for a scenario whereby a couple get a mortgage and buy a house together but one person pays the whole of the deposit?

What is the process for having such a thing documented when purchasing a property so that if any breakups/fallouts happen that initial deposit is protected?

getmore4less

The deposit buys part of the house and the debt the other.

So how much you each own depends how you contibute to both elements.

One way is to buy it 50:50 and the person that puts in the larger deposit pay for a smaller part of the debt.
(Think of it as two loans not attached to the house at all)

Allthough many agreements set up between couples do protect the deposit they should not and the deposit should buy a % of house so goes up and down with the value.

pawpurrs

The best thing to do is set up a declaration of trust, via your sol, stating who has paid the deposit, and that if you split up the deposit goes back to said person, and on what terms if any.

Doozergirl

You would buy the house as tenants in common with the one that put in the deposit owning the % of the deposit (eg. 10%) plus half of the rest (45%) = 55%

Or a deed of trust stating that the deposit goes back to the person that paid it and the rest gets split 50/50