Joint mortgage advice

Paopao

Hi everyone,

I am after a bit of advice if I may.

Myself and my partner have gone into a joint mortgage for to first time. I am wondering for the future if we broke up how the buying out process would work?

The figures-

House price: 112,500 (time of purchase)
Deposit: 16,500 (purely by me and contract in place for that to be completely returned to me)
Current house value: 130,000

Basically the question I am asking is, If we broke up and I wanted to stay in the property I would need to buy her out of the mortgage, what would i need to pay her? The equity? 50% of the profit we make on the house? Both?

Would the fact that i put the full deposit down have any effect to the amount I wold owe her?

Thanks in advance for the replies!

All the best!

Thrugelmir

The buying out process as you would put it would be dependent on either of you being able to raise the necessary mortgage on your sole income.

So unless you've lived in the property a number of years and built sufficient equity up. Possibly a non-starter.

For most people the easiest solution is to sell. Then rebuild their lives from a lower base point.

A 50/50 share of equity after your deposit is deducted, would seem reasonable. As you've entered into a joint relationship. Which hopefully isn't based on how much of you earns.

jimjames

You are probably best to specify legally exactly who put what into the house and what you get back.

Are you buying as Tenants in Common? If so you can specify in the Trust Deed what percentage each of you has of the property.

If you have put 15% of the value in as deposit then you could state that you are entitled to 15% of the sale price. The other 85% is then split equally.