How do I work out my percentage share of our property?

deaston

HappyMJ wrote: »

Then don't do it. Are you married? Once you're married everything you own is added up secured debts deducted and the remainder split 50/50 on divorce whether you owned it before you got married or not.

Could you buy the property wholly in your own name? That would be an option. The house would be 100% yours. If you split there would be no need to re-mortgage to buy out your partner. You could just give your partner a couple thousand to go and rent somewhere.

No, we're not married. Of course, should we get married, this would all be moot, but in the meantime, I think it makes sense to sort this out as no-one knows what could happen tomorrow.

Pixie5740

Why do posters seem to assume that when buying a property with unequal shares the one putting in the least money in is always the female?

Given the number of relationships which fail, including marriages, I think it is very sensible for co-habiting couples to have a Declaration of Trust drawn up so that everyone knows where they stand should it all go down the pooper.

Since you are the only party paying for the costs of moving I'd include that in your share of the property.

Since you're putting in a deposit of £320k and are paying £45k of moving costs so you should have roughly a 47% share and the rest split 50/50...I think.

Gordon_Hose

Relationship? Sounds more like a business agreement!

HappyMJ

deaston wrote: »

No, we're not married. Of course, should we get married, this would all be moot, but in the meantime, I think it makes sense to sort this out as no-one knows what could happen tomorrow.

This is a 25/30 year mortgage. You are both entering into a contract for the full time period of the mortgage. Many marriages don't even last that long.

If you don't want to buy the property in your own name then how about putting as little deposit down as possible and getting the biggest mortgage you can get? You can then put the remaining cash into either an offset account or a high interest current account, invest it in your pension or any other option.

If you could get a 90% mortgage then when you or your partner go your own way the value of the house is taken into account 10% is deducted for selling costs and the remainder split. Assuming there is no capital growth then the 45% covers the mortgage and you owe your partner nothing.

summer_james

I am buying with my partner but we are doing it 50/50 however I do understand your question. Nothing is certain in life so if you both feel comfortable with this arrangement do it. I have know couples madly in love, shared everything 50/50 but when the relationship went sour, which it can do to the best of people, it was all out war.
Whatever works for you seems a good way forward, everyone is different

Guest101

Pixie5740 wrote: »

Why do posters seem to assume that when buying a property with unequal shares the one putting in the least money in is always the female?

Given the number of relationships which fail, including marriages, I think it is very sensible for co-habiting couples to have a Declaration of Trust drawn up so that everyone knows where they stand should it all go down the pooper.





Since you are the only party paying for the costs of moving I'd include that in your share of the property.

Since you're putting in a deposit of £320k and are paying £45k of moving costs so you should have roughly a 47% share and the rest split 50/50...I think.

- I think the OP has suggested he's male in previous posts? But I agree it does happen sometimes when this isn't clear.


It's difficult I see such agreements as too business and contract and not what is in my opinion a true relationship.


It's like 'I like you at the minute, but not enough to share what's mine'. But i'm a hopeless romantic at heart.

Pixie5740

Look how many marriages fail. I'm sure when people are standing there saying, "I do," they aren't expecting the relationship to end. Then they are protected by law when they get divorced and it's not necessarily a straight 50/50 split. Co-habiting couples have no such legal protections (quite rightly so since marriage is just a contract) so it seems sensible to me to have a Deed of Trust so everyone knows where they stand and if both parties are happy to have a Deed of Trust then why not do it?

What's the alternative, for one party to buy a property in his/her name only and the other one to contribute towards the cost of the mortgage but not be named on it? Then when the relationship ends the party not named on the deeds or mortgage will have to go to court to fight for any beneficial interest they might have built up after being made to leave their home because they have no (or few) legal rights to remain in the property? It seems easier and fairer all round to just have a Deed of Trust.

deaston

Pixie5740 wrote: »

Why do posters seem to assume that when buying a property with unequal shares the one putting in the least money in is always the female?

Given the number of relationships which fail, including marriages, I think it is very sensible for co-habiting couples to have a Declaration of Trust drawn up so that everyone knows where they stand should it all go down the pooper.

Since you are the only party paying for the costs of moving I'd include that in your share of the property.

Since you're putting in a deposit of £320k and are paying £45k of moving costs so you should have roughly a 47% share and the rest split 50/50...I think.

So, in your example, my partner owns 26.5%.

For argument's sake, in your opinion, what should happen if we split? Say the house has gone up £20,000 and I decide to buy out my partner. In theory, I need to pay them £5,300 in increased value. But I'll also need to pay various solicitors fees, mortgage arrangement fees and stamp duty of £10,000.

Considering I've paid for everything in the first place, seems unfair I then need to pay a further approx. £20,000.

Incidentally, in working out mortgages/affordability etc., we agreed from the offset I'd pay a greater percentage of the mortgage and household bills as I earn a lot more than my partner. I'm paying 75%, my partner 25%.

OR, does my partner effectively owe me 26.5% of the £45,000 cost of moving? That's £11,925. So £11,925 they owe me minus the £5,300 of increased equity means they actually owe me £6,625 if I buy them out??

deaston

Also, is a Deed of Trust that everyone keeps mentioning an official thing? Or something we should draw-up, print off and sign ourselves?

I told my solicitor at the very beginning that we're tennants in common and the 25/75 split, but he's asked no more. It doesn't appear to be mentioned anywhere.

Pixie5740

You paying SDLT, solicitors, etc again if your relationship ends is why I suggested including the £45k you are currently paying for the costs of moving into your share of the property now.

If you are going to split the mortgage payments 75/25 then you could have a 47% share (deposit and costs of moving) and split the rest 75/25 if you wanted. Although I think that as you are living as one household it would be fairer to split it 50/50. You also will have joint and several liability for the mortgage so 50/50 sounds about right to me.

So then yes, in my example your partner will eventually own 26.5% once the mortgage is paid off. Unless you decide to tie the knot in which case all bets are off.