Advice Needed Please!!!!:j

Dpw15

Hello all,

I'm currently in the process of buying a house with my partner.

Her deposit contribution is £15,500
whereas
My deposit contribution is £3000

However the house we are proposing to purchase is MY mothers.
My Mother has agreed to give me a £10,000 in cash once we purchase the house.

This £10,000 would then be used to give the house some much needed TLC.

My question so to speak, is there anything I can do to secure guard the £10,000 investment from my Mother should the unlikely event of a split up happen between myself & my Girlfriend.

I wouldn't like to think of spending £10,000 on cosmetics for the house, then splitting up with partner and receiving only a fraction back.

Any help would be appreciated.

Thrugelmir

How does your partner feel about the higher deposit she is paying? Also in effect the £10k you are receiving will be added to the mortgage. So your partner will be contributing to repaying it.

Foxy-Stoat_3

Your other half will still have put in more cash as the deposit and assuming the place will be worth more once refurbished.

Just keep it all 50/50.

Dpw15

My partner is perfectly happy adding in the higher deposit, as I am almost matching her with the £10,000 + £3000 savings.

So can we get a mortgage which is completely 50/50?.

Apologies for sounding dumb, it would be my first house purchase so want to make sure I'm secure incase something were to happen.

Jhoney_2

Well let's play the money/security fairly.

Joint deposit total = £18,500. After completion, your mother is giving you £10K - so you should be giving your partner £9,250k - £3k = £6,250 to level your share of the deposit. The £3,750k balance is your own.

You can then both pay for the cosmetic improvements etc as you see fit- but on a true 50/50 footing so you are both secure in the future.

Foxy-Stoat_3

Dpw15 wrote: »

My partner is perfectly happy adding in the higher deposit, as I am almost matching her with the £10,000 + £3000 savings.

So can we get a mortgage which is completely 50/50?.

Apologies for sounding dumb, it would be my first house purchase so want to make sure I'm secure incase something were to happen.

As far as the lender is concerned you are both jointly and severally liable for the debt and equity.

For all of you to be secure then you would need to draw up a Deed of Trust which lays out your original deposit amount and your partners. This will secure your partners £12,000 for her deposit in the event that the relationship breaks down and you have to sell.

As far as the £10,000 of your Mother's, she should draw up a loan agreement stating that no interest or repayments will be paid, but the £10,000 will be paid back to her in the event that the relationship breaks down and you have to sell.

You would then need to keep every receipt of the £10,000 that you spend on the house. So if you have to sell in the event the relationship breaks down that you would have this amount back to pay your Mother back. Obviously you may not add £10,000 worth of value to to property but I would hope that you are buying it at a good price and the property will increase in value anyway.

Personally I would do nothing but buy the property and spend the £10K on new kitchen and bathroom and use joint funds to decorate.

getmore4less

Dead easy stick equal amounts into the pot use some for purchase costs, deposit the rest for refurb, pay mortgage 50:50 own the house 50:50.

The fact your 10k comes a bit later is not relevent.

Dpw15

Thanks everyone!

All suggestions noted.