Joint partners after ring fencing

nathcc

Hi, my partner has equity in a house, lets say £10,000. I'm considering leaving my current home to live with her as 50-50 partners stake in the house, apart from that she wants to ring fence her equity.

Is this perfectly normal?

Would she have anymore rights to do with our partnership than me because of her equity, history of ownership and 13 year 'existence' living there?


Thank you for your help and time.

Thrugelmir

Nothing usual on one partner protecting their own built up equity. Something your conveyancing solicitor will help you with. Legally it can be covered with a Declaration of Trust. This basically sets out how the equity in the property will be divided in the event of certain specified circumstances.

RickyC_IFSWP

nathcc wrote: »

Hi, my partner has equity in a house, lets say £10,000. I'm considering leaving my current home to live with her as 50-50 partners stake in the house, apart from that she wants to ring fence her equity.

Is this perfectly normal?

Would she have anymore rights to do with our partnership than me because of her equity, history of ownership and 13 year 'existence' living there?


Thank you for your help and time.

I would've thought that if she wants to ringfence this equity, it wouldn't then be a 50:50 share.

As Thrugelmir suggests, best speak with your solicitors and see what they think.

StuC75

have you got 10k to buy into the 'equity' which would be paid straight to the mortgage company or 5k to buy into that 10k? that way everything would be 50/50..

Do consider if its worth buy an 'our' place together over buying into what was 'hers'.. would you truly feel at home there - would her extra interest over-ride it being a 50/50 decision, what happens should you disagree over any changes?

what happens should you separate down the line regarding being bought out of any further equity that is generated , or paying a deficit were the valuation to go down following that..

nathcc

Thanks for your input.

I meant 50-50 above the equity.

We have to get the house valued at some point, im not sure she has much equity, until the valuation, no point offering anything.
Yes Stu, that is my concern, would her equity give her more 'power' over me..?
We would just have to settle things if things went bad, she's a family solicitor so that would be me srewed hehe

Thrugelmir

nathcc wrote: »

would her equity give her more 'power' over me..?

None at all. Ask her to explain a Declaration of Trust to you.