Buying advice when one partner has a lot more equity

johnieutah

Hi all

My girlfriend and I want to buy a flat together, however I have a lot more cash available than she does... in the range 8 - 1. We've been over the options:

1. We split a mortgage 50-50.
I'm not up for that really since I could afford my half outright.

2. I buy a flat outright on my own.
I take a small mortgage and take everything on my own. She pays me rent... which would seem a bit strange but only logical I guess. Would be very tight for me financially depending on the property is doable to an extent. Also don't really want to throw all my savings etc... in to one basket, would rather keep some invested.

3. We split up the property according to who puts what in.
e.g. I put in 80%, she puts in 20% and we work out the profits (or losses!) if and when we sell. How do sort out any work and renovations? - I guess that needs to be split as well??

4. We carry on renting, I buy a property on my own and rent it out. Not keen on owning somewhere to rent out, and then I have to rent somewhere myself. Also got the same problem of putting all my eggs in one basket.

5. ???

So how do people usually sort these things out?? It must be a not too unusual situation. We're not married, but I guess its heading that way at some point. Do I just put it all in and do it for the team

Thought and suggestions please.

Cheers.

Person_one

Rent and keep saving until you're happy to throw your lot in together and see it as 'ours' not yours and hers.

If you're not willing to wait then 3 is best and can be readjusted later if you do decide to make the commitment.

Soot2006

We were in this situation, but we were already living together and knew we wanted to be together forever (doesn't everyone!) ..... I put in a significant amount of money, OH put in only a little. We pay mortgage 50/50 and bills, repairs, etc. We have a deed of trust drawn up by a solicitor that states in event of separation/sale proceeds will be split along the original input. Negative equity unlikely due to size of deposit but if house worth less than when we bought it at point of sale, then proceeds to be split along a %. It's nice to think things will always stay amicable - there's a chance they would, even in case of a split, but this way we know where we stand. We both enjoy living here and have shared finances anyway in reality (although legally nothing is joint) ...

Cash-Cow_3

Dump her and find someone with more cash.

cattie

Cash-Cow wrote: »

Dump her and find someone with more cash.

I'm available if you're handy around the house.

pmlindyloo

Which one is your girl friend leaning towards?

Personally I would wait until you both can afford to put in equal amounts, buy together/have a mortgage between you. Then you can stash your extra cash somewhere where it can 'grow'.

This will give you time to decide whether marriage is on the cards or not.

I do believe that having 80% and 20% (whatever) can lead to all kinds of problems. The one you mentioned - renovations etc and also the feeling of not being 'true partners' from the one with the least percentage.

It may work for 2 friends but not sure if it always would when you are in a relationship.

Just my point of view.

gazfocus

I agree with pmlindyloo. If you go for the 80/20 split, it could potentially cause problems down the line with your girlfriend not feeling equal in the house. It would always be as though she lives in mostly 'your house'.

If you're not happy with a 50/50 split then wait until a time comes that you are happy to go 50/50.

I'm in the process of buying my first house for my wife and I. My wife isn't on the mortgage because she's only recently started working due to a disability and it's really difficult to convince her that the house is 'our house' when she knows I'm the one stumping up the deposit and mortgage for it.

Person_one

gazfocus wrote: »

I agree with pmlindyloo. If you go for the 80/20 split, it could potentially cause problems down the line with your girlfriend not feeling equal in the house. It would always be as though she lives in mostly 'your house'.

If you're not happy with a 50/50 split then wait until a time comes that you are happy to go 50/50.

I'm in the process of buying my first house for my wife and I. My wife isn't on the mortgage because she's only recently started working due to a disability and it's really difficult to convince her that the house is 'our house' when she knows I'm the one stumping up the deposit and mortgage for it.

There might be a disparity in earnings that means things are never 50/50. That's how it is for a lot of couples.

ViolaLass

OH and I are looking to buy this year. I have much more saved than he and we will most likely split the mortgage 50/50 (actually, this is moot since we pool our earnings anyway). When we sell, we will each get back our deposits and split the rest 50/50.