joint mortgage question

loveGSDs

hi all,

sorry if this has been asked before, i couldnt find a previous thread for it.

i have more savings than my partner and am willing to put them into our deposit fund for a mortgage, however i know of friends who have been burned by this in the past. is there a contract or similar that can be drawn up so that if the relationship was to break down and property sold, we would both get what was paid in? (obv depending on the equity)

thanks in advance

TrickyDicky

When you purchase a house, there are 2 options: joint tennants or tennants in common. With join tennants you both own the house 50/50. But with tennants in common you can set the split up how you want. There are other inheritance tax implications with TIC though, so make sure you read it all through. Im sure your conveyancer can explain it all.

Senior_Paper_Monitor

Another option is to use a Deed of Trust either instead of or in addition to a Tenant in Common structure.

Easy to sort in advance - nightmare to sort in arrears.

loveGSDs

do you do this through a solicitor?

how does it all work etc, for example i can afford to contribute £6,000 and my partner can contribute £1,000, therefore if we were to split i should get £5,000 more than him back. we would be paying the same in each month, it would just be the initial deposit that wouldnt be 50/50

thanks

Senior_Paper_Monitor

Normally through solicitor (as part of purchase conveyancing - additional charge).

The circumstances you describe are simple - the first £5k equity on sale would be yours, banace of equity would then be split 50/50. Important part of agreement should be who, how and when sale can be forced - and option to buy out.

laurajane28

As mentioned, you should draw up a Declaration of Trust which you would both signing detailing how much you both contributed towards the property purchase. This would protect you should the relationship break down.

Your solicitor should be able to draw one up for you when you go through the conveyancing transaction (additional charge though).

HTH

loveGSDs

thats great guys, thanks for the help

i know its not something u wanna think bout (relationships breaking up) but iv seen the consequences of this happening and dont wanna run the risk of it happening to me

just one last thing, any idea how much the additional charge is?

Senior_Paper_Monitor

I would expect it to be somewhere in the range of £200 (assuming nice and simple, which yours sounds).

I see the results of people failing to do this in advance (and failing to do wills, write correct trusts to protect insurance and assets etc) almost every working day !