Unequal Equity, what to do ?

LandyAndy

Mike_1300 wrote: »

My partner and I have recently purchased a house between us. I own 2/3 and she 1/3. We’ve agreed that any expense that adds value to the house (e.g. a new kitchen) we will fund with a 2/3 – 1/3 split. What we can’t decide is how to split non-added value (e.g. stamp duty). Should it be 2/3 – 1/3 again or 50/50. We both want to do the best for each other. What does the panel think ?

This bit of the panel thinks you need to rethink what a relationship is.

poppysarah

Mike_1300 wrote: »

We both want to do the best for each other. What does the panel think ?

Get married and then what's yours is her, and what's hers is her own.
:-)

nikki82_2

My bf and I are currently buying, he has a house to sell with equity and I only have savings so we have just said if things go belly up then he gets out the amount he put in, I get out the amount I put in and everything else we split 50/50 (stamp duty, fees etc.) after all you're both buying. Having worked in conveyancing in the past you see so often how things can turn nasty when money is involved and I think it's pretty sensible to have something in place from the outset, just keep it simple and don't stress over it, heaven know's its stressful enough!!

Person_one

LandyAndy wrote: »

This bit of the panel thinks you need to rethink what a relationship is.

Its a partnership right? Where you look out for each other's happiness and wellbeing? I don't think there's anything wrong with thinking things through at this stage. No one can tell the future, people can be married 30 years plus and still break up after all, and if there is an acrimonious break up in the future you've potentially saved yourself an awful lot of hassle. What about 'Hope for the best, plan for the worst'?

I'm moving in with my partner soon. We will most likely have a Declaration of Trust drawn up stating the percentages we'll each own based on our contributions to the mortgage and update it if and when necessary. The fact that we care enough to put protections in place for each other does not mean we love each other any less, once this is done we hopefully won't have to think about it ever again.