How to split a mortgage

scoops82

Hi


Does anyone know the best method forward please?


I bought a house in my name 6 months ago with my girlfriend but the house is all in my name. However I paid the 10% deposit and we have split the mortgage & bills and the work required in the refurbishment to mean I own 65% and she owns 35%.


We have nothing in writing to state this apart from my spread sheets which clearly show all payments made in connection with the house and how the house is funded.


What is the bets way to protect our interests - if anyone was to happen between my in my GF in the current scenario what would be mine/her entitlement?


Thanks
S

getmore4less

Properly drawn up trust deed

To do this properly you need to separate out the mortgage

if you want 65-35 with a 10% deposit 90% mortgage
mortgage is split 61.111:38.889

Any capital investment and ownership cost needs to be 65:35

on split you get the 65:35 from the sale and then pay off your shares of what left on the mortgage.

Non ownerships costs like utilities should be separate.

scoops82

Its only my name on the mortgage though - does that make a difference?

amnblog

Planning ahead Scoops?


Aren't break ups supposed to happen over Christmas - not planned before?

Senior_Paper_Monitor

At the first level, the house is yours - and she will have signed a waiver making it clear that she has no claim on the property (assuming you declared to the mortgage lender that she was going to be resident).


Her claim (should there be one) that she is entitled to a share (35% ?) equity would usually be refutable, although the existence of the spread sheet in general might be sufficient to support a court action, particularly if it highlights 'contribution to mortgage' rather than general contributions to household costs.

scoops82

Ha ha....no I'm not planning ahead. We both agreed we would get something sorted out after we bought he house but we just haven't got round to it but....if something was to happen I would like to know where I stand and both mine and her rights.


I was thinking we could just say if we ever sold it we could take away selling costs and then the remaining profit would be split 65/35 based on the payments made and deposit.

scoops82

Well I didn't mention it t o the mortgage company as she has bad credit history and mine is really good and I was able to get the loan on my own.


The likelihood is that all major works will end up being paid for by myself (which is fine but if anything happened I would want that recognised-maybe because I works in accountancy lol) as she is not on much more than minimum wage - would we be then able to amend the document to increase/decrease each share?


If anything ever did happen I wouldn't argue that she wasn't entitled to her share but I just want to make sure we get the write document written up and signed correctly and if anyone knows of rough estimates of the cost of this then please share.


Thanks
S

CLAPTON

scoops82 wrote: »

Hi


Does anyone know the best method forward please?


I bought a house in my name 6 months ago with my girlfriend but the house is all in my name. However I paid the 10% deposit and we have split the mortgage & bills and the work required in the refurbishment to mean I own 65% and she owns 35%.


We have nothing in writing to state this apart from my spread sheets which clearly show all payments made in connection with the house and how the house is funded.


What is the bets way to protect our interests - if anyone was to happen between my in my GF in the current scenario what would be mine/her entitlement?


Thanks
S

why do you own 65% and she own 35%?




what is the split in mortgage and other payments?

scoops82

We split the mortgage and households bills 65-35.


I was hoping we would be able to do something like


Example


Sale price £100K
Deposit Paid (10%) 10k back to me
Remaining value split 65-35


This is starting to sound a tad messy - what is the best solution? Does anyone know how much it would cost to draw this up a t a solicitors

Mojisola

scoops82 wrote: »

I bought a house in my name 6 months ago with my girlfriend but the house is all in my name. However I paid the 10% deposit and we have split the mortgage & bills and the work required in the refurbishment to mean I own 65% and she owns 35%.

We have nothing in writing to state this apart from my spread sheets which clearly show all payments made in connection with the house and how the house is funded.

What is the bets way to protect our interests - if anyone was to happen between my in my GF in the current scenario what would be mine/her entitlement?

At the moment, the house is yours.

If you split up and couldn't agree on a settlement, your GF would have to go to court to prove that she had a beneficial interest in the property and was entitled to a share.

Mattygroves2

scoops82 wrote: »

We split the mortgage and households bills 65-35.


I was hoping we would be able to do something like


Example


Sale price £100K
Deposit Paid (10%) 10k back to me
Remaining value split 65-35


This is starting to sound a tad messy - what is the best solution? Does anyone know how much it would cost to draw this up a t a solicitors

First thing is to write a will as at the moment if you die she gets nothing.

Then for her to have a share in the house she will have to be on the mortgage and the deeds. You can then own as Tenants in Common and get a Trust Deed sorted out to recognise the unequal shares. I would imagine this will mean a remortgage and she will have to be credit checked and you become financially linked.

Or you can leave things as they are and she has to hope that you part on good terms and you are kind enough to pay her share out. Otherwise she will need enough money for a court battle.