Moved into BF's house - what happens when we buy house together?

Noctu

Hiya,
I've been living with my partner since early last year. I don't contribute towards the mortgage, just bills.

It looks as if (and I'm hoping!) that we'll be getting married and buying our own house in the future.

However I have never had a mortgage or anything like that. I'm a total newbie when it comes to things like this. I've only ever lived with my mum, and then lived in Uni halls for a year!

My OH has a mortgage (normal repayment one) of £45000 ish, and by the time we get our own place, he'll have paid off around £10,000 off it.

My question is.. when we get our own house, how does this get taken into account? How have other people done it? I'm more than happy to pay a little extra per month towards a mortgage until I've paid what I was going to pay anyway and also make up the extra amount which he paid off his previous mortgage. Is that how it's normally done?

Can anyone advise? Bearing in mind I'm a *total* dummy as regards all this type of thing, I only found out last week what an endownment mortgage is (and still don't understand it to be honest!). :eek:

Thanks for any help.
Rachel.

irnbru_2

Noctu wrote:

My question is.. when we get our own house, how does this get taken into account?

Pre-marriage - his 10K is calculated as a percentage of the property value. You split the difference on the remainder by contribution - its worth getting this drawn up as an agreement.

Search this forum as there are plenty of posts on this subject.

lady_noluck

Personally i'd do it like this:

Continue contributing to bills but don't pay the morgage, then when the time comes, sell his house and use the equity as a deposit. Then pay the new morgage and bills 50/50.

Draw up a "declaration of trust" to say that if you do split up in the future (hopefully you don't ) and there is equity in the new property, he will receive back the amount he originally put down as the deposit. The rest gets divided 50/50.