Your opinions welcome...

kinglewis

I think this may pull up some fairly variable views... But here goes...

I am buying a property where I am placing twice the deposit down than my partner. ( I am putting down £50k compared to £25k ).

We are clearly planning to be together forever and cannot see any reason why we may split up.. but we live in the real world..

So..

Do I put the joint ownership down where ownership is 50/50... or split the ownership so that I own 2/3 and my partner owns 1/3... as this is what the deposits represent?? Hence creating a heated debate!!!!

The mortgage will be paid 50/50 so this split then doesn't seem completely fair.

If we never split up.. the ownership is never an issue.. but if we do.. at least the split will be fair.

P.s I know this sounds like a negative thing to talk about but I will make it clear now our relationship is very stable and I cannot see us splitting atall but I am not naive and I know these things happen.

Your opinions please!!

BitterAndTwisted

I think the deposits should reflect the percentage of the total purchase price as you will both be making equal payments for the mortgage. This might not seem important now but should you decide to split it might be very different in say ten years time

pinkshoes

kinglewis wrote: »

Do I put the joint ownership down where ownership is 50/50... or split the ownership so that I own 2/3 and my partner owns 1/3... as this is what the deposits represent?? Hence creating a heated debate!!!!

The mortgage will be paid 50/50 so this split then doesn't seem completely fair.

I'm thinking maths isn't your strong point...

The deposit should be represented as a %, so if it's a £200k property, then you're putting down 25%, and she's putting down 12.5%. The remainder (62.5%) will be spilt 50/50 as you're paying half the mortgage each.

You would only ever get a 2/3 share if you also paid 2/3 of the mortgage too...

viclspence

My sister and her ex bought a flat a few years ago. My sister put down a deposit of £10k which represented a % of the deposit. They drew up a legal agreement (the conveyancing solictor did it I think) to say that they split and sold the property then she would get either her £10k back or the equivalent % if higher. Unfortunately, even though they went through the 'we are only doing this to be safe but it will never happen', 2 years down the line it did! You would also need to think about if you split, that you either sell the property or one of you stays in it and gets it remortgaged, otherwise you will still be liable for 50% of the mortgage payments.

Edit: this is of any profit made on the property - they had to get the flat valued when she left. Obviously if the property has decreased in value, or is worth the same, then you won't get a penny anyway.

kinglewis

Thanks for your replies

Tony_R

I will also be soing something similar, a 60/40 split on the deposit. How much extra does it cost to set up such an agreement with a solictor on top normal house purchase solictor costs?

misskool

You can do a deed of trust where you state exactly how much each person owns as a percentage of the deposit and what happens to the share of the houses.

Make sure your will reflects the deed of trust.

It's difficult to estimate costs.