'Pre nup like' agreement - options please

veryintrigued

Hi there

Myself and partner have lived together for around 6 months. In that time her house has been for sale. Her house sale is now close to completion.

We love each other to bits but are keen to protect ourselves should the relationship break up. We'd like my partner to buy into my home. This home has no mortgage.

We've had the house valued (three different agents) and she would be able to give me 10% of the average current value.

What we'd like to do is draw up an agreement such that whatever happens to the house value she would be able to take away 10% of the value should the worst happen.

So...we've been in touch with a solicitor and he's advised us of a route (which I wont mention so that any ideas on here arent influenced by this).

But we'd like to see if there were any other options that would protect both of us.

Many thanks in advance

**curlywurly**

Could you perhaps hold the house is tenants in common in percentages 90% to you, 10% to her? That said, there may be other issues with such an arrangement for example you would each need to consider writing a will.

If you were to draw up an agreement, it would have to be fairly specific about what would happen in the event that you split up - what if one wants to sell and the other doesn't? What if one wants to buy the other one out, how would the property be valued?

Jinx

What she should get is her original stake back plus or minus any increase/drop in value of the house.

This is what I had before I got married. We had a large amount of cash each, different values to buy a house. We had a Solicitor draw up a financial agreement, we both get back our original amount in the event of a split and we both take the increase/hit for a drop in value and both liable for half any house related debts.

All bets are off now that we're married though! lol

zcrat41

I'd invest her money in either another property or something else that will (hopefully) see it grow.

peachyprice

I put more into our property, so our solicitor drew it up as tenants in common, with the extra I put in worked out as a percentage, I thinks it's something like 66/34.

burnoutbabe

after 6 months? I'd just invest the money somewhere for a few years until you buy together.

I assume no rent is charged? so she can save that money for the future house purchase so could go 50/50 with you.

Review in 2 years.

seabright

As well as being tenants in common, I would also recommend a Declaration of Trust agreement. As well as basic financial info, you should also set out who will pay for what, if any chores are to be the specific responsibility of a particular partner.

Also, make provision in the agreement for various eventualities. Say you agree to pay bills 50/50, what happens if one of you gets ill and can't work? Does the other pay? if so, are those extra payments a loan or a gift? Similarly, what is one is made redundant, gets pregnant, stops work to look after children or becomes a carer for another relative?

Lastly a provision for what happens on one of your deaths. I would suggest something along the lines of "no sale of the property for 6 months, in which time the survivor has the right to buy the percentage from the deceased's estate.

Hope that helps. PM me if you need more info

veryintrigued

burnoutbabe wrote: »

after 6 months? I'd just invest the money somewhere for a few years until you buy together.

I assume no rent is charged? so she can save that money for the future house purchase so could go 50/50 with you.

Review in 2 years.

Been together for a couple of years - only moved into together six months ago though

veryintrigued

seabright wrote: »

As well as being tenants in common, I would also recommend a Declaration of Trust agreement. As well as basic financial info, you should also set out who will pay for what, if any chores are to be the specific responsibility of a particular partner.

Also, make provision in the agreement for various eventualities. Say you agree to pay bills 50/50, what happens if one of you gets ill and can't work? Does the other pay? if so, are those extra payments a loan or a gift? Similarly, what is one is made redundant, gets pregnant, stops work to look after children or becomes a carer for another relative?

Lastly a provision for what happens on one of your deaths. I would suggest something along the lines of "no sale of the property for 6 months, in which time the survivor has the right to buy the percentage from the deceased's estate.

Hope that helps. PM me if you need more info

Many thanks - this is what we have been professionally advised - and we were going to re write wills as someone else advised above. We were hoping for other 'easier, less complex' but just as 'secure' but this looks like this may be the way to go though.

SomersetSaver

Hi
As well as the Declaration of Trust/Tenants in Common/Wills changes you could also make a Living Together agreement (which is a bit like a pre-nup - see http://www.advicenow.org.uk/living-together/moving-in/living-together-agreements-html,280,FP.html for more information).
You can then detail arrangements for various things in there - like if one of you has first dibs on who stays in the house if you split up, what happens to any inheritance either of you might get etc. etc.

The website has lots of useful information so worth a look.
HTH
SS

veryintrigued

SomersetSaver wrote: »

Hi
As well as the Declaration of Trust/Tenants in Common/Wills changes you could also make a Living Together agreement (which is a bit like a pre-nup - see http://www.advicenow.org.uk/living-together/moving-in/living-together-agreements-html,280,FP.html for more information).
You can then detail arrangements for various things in there - like if one of you has first dibs on who stays in the house if you split up, what happens to any inheritance either of you might get etc. etc.

The website has lots of useful information so worth a look.
HTH
SS

Another good reply - thank you