Declaration of trust - fairest way to split the money with bf

supersezzie

Hi, We're buying a property and almost at the point of drawing up a declaration of trust.

The idea is that the property is mostly in my name right now (my bf is joint on the mortgage application for affordability but works part time so earns quite a bit less than me). My dad has put up the deposit.

Also, my bf might only be living with me part time in the house. I'd like some of his money to go into the mortgage itself so that he can get something back but I'm wondering how to draw this up considering bills and how to do it fairly. The bills will be about £300pm, mortgage is £400, and he will probably only be paying me about £150. I have wondered about saying he pays half the bills and anything on top goes into the mortgage but there's no way to write that in a deed of trusts is there? It seems harsh cos then he would basically be left with 0% interest in the property. How would you decide if money paid should go to mortgage or the bills first?

Any suggestions on how you would divide this and how it gets written into the deed of trusts is welcome. The problem is setting afixed amount now - I'd like him to have the option to buy into it more when he gets another job, but I think we have to say now how much he is going to contribute percentage-wise to the mortgage.

Any advice welcome!

Kynthia

You are buying the most expensive asset of your life with a debt that lasts decades, longer than most relationships, and it's possible for it to both increase and decrease in value, possibly leaving you in negative equity. It has the potential to be a nightmare if bought jointly with someone.

I'd buy it on my own or with someone I was married to (or in a relationship where we were committed enough to marry and build a life together but had made the conscious decision not to do so for personal reasons).

It doesn't sound like your bf can afford it and neither of you had enough savings to put a deposit down. It looks very complicated. If you go ahead then have the trust deed state that when you sell your dad gets his deposit back. Then you two need to decide what percentage of ownership you'll both have. Have you discussed what will happen if you split up, if the property is in negative equity, if one of you losses your jobs, etc?