using my money as deposit

valgee

I have recently sold my house and put all the money into another one with my boyfriend. We have now got a joint mortgage. My question is whether this will be treated as a gift to my boyfriend as technically he now owns half of my deposit as well. We trust each other as we have been together 10 years and can make up an agreement should we split up but how will the Inland Revenue see it.

Many thanks for any help.

damianbyrne

Hi there
I am the same position as I am selling my own house and buying with my fiancée, although I hope it never comes to the dreaded split, I want to be “safe” in case the worse happens. After a few searches on the net, what you should look into is a “Deed of Trust”. Not sure the legalities of this and I am quite sure it definitely will not affect matters when we have children, however it may be of help to you.

"A Deed of Trust can cover every eventuality. It can state what proportion each you own of a property and what happens if relationships break down or if one of you dies. It can also include details such as who is responsible for paying the household insurance”

Taken from The Guardian Website http://money.guardian.co.uk/divorce/story/0,,1552691,00.html

There’s a post on this site; http://forums.moneysavingexpert.com/showthread.html?t=195209&highlight=deed+of+trust

Also, take a look at these sites
http://www.advicenow.org.uk/go/clm/noticeboard.html
http://www.freelawyer.co.uk/legalservice/fpservices.asp?fplsid=21

HTH
DB

Iso

It would be sensible to have a written agreement in the event of a split-up (however unlikely it may seem now) and for other financial reasons too - what would happen if your partner ran into financial difficulties etc?

If you put in all the deposit of £X you should agree that when the property is sold the £X you put in should be repaid to you from the proceeds. The costs of selling should also be deducted from the proceeds and the balance left split 50/50 (assuming you each pay 50% of the mortage).

valgee

Many thanks for all your help. I am going to take out the Deed of Trust just in case.

Ciao

plane_boy2000

No issue with the inland revenue - if you are living in teh house then any gains etc are tax free as long as the property is your main residence.