FTP with girlfriend

chris1210

Hi all,

Forgive me if this has been asked previously - i've searched quite a lot and can't find a detailed answer on this

So, myself and my girlfriend are looking to by our first house together this year. Through some less than wise choices with money in my early 20's i have little to no savings to my name - but my GF is a natural born saver and has savings of just over £30,000.

We plan to use this as a deposit on a property of around £160k.

How do we get something drawn up so that in the unlikely event we split or one of us dies, the other person gets there equal percentage? The plan in our heads is for my GF to get the 30k back, then the rest is split (as we will be splitting mortgage payments 50/50).

I've read a lot about Tenants in Common or Deeds of Trust - are these drawn up by a solicitor and is it a pretty standard thing? (or is it something they would charge us extra for?).

Would doing anything like this affect or harm a mortgage application?

Appreciate any advice

DVardysShadow

Do it this way:

Buy a property for 160 with 30 deposit from her. To match this, you take the mortgage on the first 30 as your responsibility and you split the remaining mortgage 50 each. So she puts in 30 and takes responsibility for 50 of the mortgage and you take responsibility for 80.

holly_hobby

Writing as tenants in common will split the ownership of the property as a %, not a monatary sum.

My advice would be (to ensure that 30k from any sale goes to your GF before an equal division of the remainder) - to have your solicitor include a codicil on the deeds stating your requirements.

Hope this helps

Holly

CAN1976

If you do it your way if you come to split up and sell later she should get

30/160 * end value of house plus half the remainder. Why should her deposit not benefit from any capital gains

DannyboyMidlands

If you split and sell the house she should get 18.75% (30 out of 160 as a percentage) of the proceeds. The rest should then be split 50:50.

However, I don't really see what's in it for her. Why wouldn't she just buy it for herself and charge you board? What are you bringing to the table?

funky1471

DannyboyMidlands wrote: »

If you split and sell the house she should get 18.75% (30 out of 160 as a percentage) of the proceeds. The rest should then be split 50:50.

However, I don't really see what's in it for her. Why wouldn't she just buy it for herself and charge you board? What are you bringing to the table?

Maybe she has the money saved for a deposit, but not a high enough salary to get the mortgage?

Although saving £30k is no mean feat, so I doubt this is the case.

Me and my gf are doing everything 50/50 so don't have to worry about anything like this. Even if we weren't I have faith in our relationship anyway so wouldn't necessarily need anything like this in place.

Some may call that stupid, but i'm not in that situation anyway.

Everybody is different though, but we already intend on getting married when we can afford it. A house is more important to us at this stage though

Good luck with your application, hope all works out well.

My sister is actually doing similar to what somebody suggested.

She put in all the deposit on a house, she bought it for herself and he lives with her. She pays the mortgage and he pays her some money each month and splits bills.

As I say, everybody is different, and I agree with the way she's done it as it's the right thing for her.

chris1210

The percentage of 160 makes sense - it would have been the line we went down but didnt' want to overcomplicate the post! Thanks for the replies.

Regarding 'whats in it for her' - well, we are planning to get married, so it's not like we're not serious and i'm a shark trying to diddle her. If i wanted to do that I wouldn't even look into this would i? We want to buy a house together...

DannyboyMidlands

That's my point though. You're not really buying it together because you're not providing any money. She's buying it and you're going along for the ride. Fair enough if she's happy with that but I'd be tempted to wait a couple of years until the split is nearer 50:50. That's what me and gf did. The additional that I saved whilst waiting for her just became our rainy day money.