Buying with partner, significantly different amounts !!

nirish

Can anyone explain to me any options or what the protocol is for defining how much of a house is owned by each partner when buying a house together.

With one person having approx 25k and the other 200k this needs to be defined and not disappear into one large pot which would be split if things went wrong in the future.

Has anyone got prior experience of this situation ??

nirish

Is this something you would get the house purchase conveyancer to draw up or is this another area of speciality.

Mojisola

You could consider owning the property as tenants in common, with the two of you owning different percentages according to how much you put in.

nirish

How does this work when after the initial purchase the mortgage is then paid of 50/50 ?

So one deposit is 200k, one is 15k and then the mortgage of 150k is paid equally by both.

Does tenants in common allow for the changing proportion of ownership this would entail ?

martinthebandit

So you don't view your partnership as an equal one?

mapcr77

Why don't you work it out on how much you will eventually contribute? Sounds like your deposit is 50% at £215, so the mortgage will split at £107.5k each. One will end up paying £307.5k and the other £122.5k. Work out the proportions from there...

nirish

Its as simple as security for parents and grandparents who have provided an early inheritance so it can be used in the house purchase.

How equal I consider the partnership is irrelevant unfortunately.

Given that they provided the money for me they are reluctant to see it become jointly owned when we aren't married.

As they provided the money this is understandable and I wish to give them the ease of mind that it can't be lost from the family.

nirish

mapcr77 wrote: »

Why don't you work it out on how much you will eventually contribute? Sounds like your deposit is 50% at £215, so the mortgage will split at £107.5k each. One will end up paying £307.5k and the other £122.5k. Work out the proportions from there...

That is a very reasonable suggestion and in many ways makes a lot of sense.

The only issue with using the final percentages to define the ownership is that if a problem arose sooner then the defined amounts would be in the favour of the person who put in the smaller deposit !

Annisele

There isn't a standard answer, but it's something most conveyancers have a lot of experience with.

Broadly, you need to work out what you think should happen in a variety of unpalatable situations: what if you split up the day after you buy the house? What if one or both of you dies - does the money get returned to your family, or can your partner keep his house? What if you're forced to sell when the property is worth less than the outstanding mortgage?

HappyMJ

Could you...and this is only suitable if you both agree and can borrow the money...could you both put exactly the same amount as a deposit and borrow more money. Possibly with a offset mortgage. The person with the extra money can then offset the extra money they have against the mortgage or use it to invest elsewhere...possibly in a buy to let property or just cash ISA's.

nirish

I think realistically we want to put as much money into the house as possible so we get the best mortgage rate we can possibly get and also possibly allow us to pay off the mortgage we get in a relatively short period as we hope to be able to pay off approx 3k a month.