Adding a partner to the mortgage

orangepeel10

I have a house which I bought 4 years ago with my ex-partner, who I 'bought out' of her share of the property when she moved out.

I would now like to add my new partner to the mortgage.

I'm aware of the procedures and legal fees involved in doing this, but the problem lies in the increased value of the property. We've had two estate agents value the property at around £25k higher than what I originally paid for it. Even taking into account a lower-than-expected valuation, this still leaves me with an equity of £35k in the property.

If I was to add her to the mortgage, should I accept that she only invests half of what I've actually paid off the mortgage (around £18k, so she would only pay £9k) OR is it fair to take into account the value that's been added over the last 4 years?

As far as I can see, the second option would mean setting up an agreement that says if we sell or remortgage I would be entitled to the extra equity that has been built up before she moved in, and then any other profits would be split 50:50. This means that she could still afford to invest her money now and become the joint owner, but we would receive different amounts when we come to sell.

Any thoughts or suggestions would be much appreciated.

Thrugelmir

The £35k of equity of yours.

From the date she starts paying the mortgage split the remaining equity 50/50.

A solicitor will assist you with the formalities.