Declaration of Trust - calculations help

115AJ

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dexterwolf

Why don't you say B has put in x amount and I have put in X amount . Anything after that we split half but as long as the mortgage is covered.


I had one drawn up where I put in 35 K and said that anything after that we would halve any profit on the house as long as the mortgage was paid off if we split.

getmore4less

115AJ wrote: »

Myself and my partner (B) are buying a property together. We will be tenants in common with unequal shares with a Declaration of Trust.

In total our deposit towards the property is 37.5k.

Purchase price £249,999. We have a LTV of 85%

B's grandparents have gifted B 20k and B's mother has gifted B 10k - both towards the cost of the deposit.
If B and I were to separate, both B's grandparents and mother would like the money to be awarded to B.

The remaining 7.5k deposit is contributed equally from myself and B.

We will equally be contributing to the mortgage payments, bills and legal fees including stamp duty.

Could anyone suggest what percentage of shares would be fair on the Declaration of Trust?

if you want to do proper equitable shares then you also need to add in all buying costs and who pays those .

total £250k deposit £37.5k mortgage £212.5k
A. £7.5k/2 + £212.5/2 = £110k
B. £30k + £7.5k/2 + £212.5k/2 = £140k

that's 44%:56%

sell split the total at those % after fees but before paying the mortgage then pay 1/2 the remaining mortgage each.

As long as you keep paying the mortgage 50:50 including overpayments it will work.

Any households improvements repairs should be split at the equity %.


you could own 50:50 and split the mortgage to make it equal.

foxy-stoat

https://forums.moneysavingexpert.com/discussion/5469754

Two threads.