Buying a home with uneven contributions

Passiflora

Hi all,

Myself and my partner of 7+ years are buying a new build property together. He works full time and earns a very good wage (60k pa), however I am currently a mature student following 3 years of being on employment support allowance due to severe mental health issues (lifelong).

I have suggested to him (and he agrees) that it would be sensible to speak to a solicitor about in some way 'protecting' his investment in our home, as currently the balance is weighted very heavily his way. Obviously, should the worst come to worst and we split up further down the line, we don't want to end up in costly/bitter arguments over the property and financial settlements etc.

It may not sound very romantic, but such is life! I used to work in the financial advice sector and all too often saw feuding ex-couples having a huge amount of stress etc over property and who gets what. It was just awful so we want to avoid any possibility and protect what is the biggest investment of our relationship/lives.

The property is 240k, and we've been told we qualify for the 25% equity loan through help to buy so only have to pay a 5% deposit which is being funded by the sale of my partner's current home (a 2 bedroomed flat). I'm currently living in rented accommodation.

My only income that will continue once we move in together is child benefit and child maintenance for my 2 children from a previous marriage. So as it stands he is going to be contributing the deposit (about 10k), the fees (currently 1k), stamp duty etc and moving costs. He will also be paying the majority of the mortgage bills etc until I can find a job and start contributing. I am saving bits here and there as I can but am on a low income so cannot chip in anywhere near as much. I am, however, buying bits for the house such as new beds for the kids, furniture, that type of thing.

I've been advised by my lecturers that once I have achieved my qualification I can expect to earn 24k+ a year dependent on what I choose to do job wise, but in the meantime I'm just looking for any job to fit in with the kids etc, so I can at least help out with the costs in the interim.

I have no intention of being 'kept' or expecting him to pay for me and the kids on his own, hence me looking for part time work. BUT I need to be carefully not to put too much on myself and make myself bad, as it will just end up with me being out of work for health reasons again.

If anyone can advise on whether it is possible to do such a thing, or how the best way to go about it would be, I'd be very grateful!

getmore4less

Might it just be easier for him have the place 100%.

Even with full time earnings your income balance will never match.

Factor in paying upto 50% of the running costs your surplus cash will be tight if you start paying rent/mortgage etc even less.

once you are earning the money to support a share look at re balance the equity then perhaps at the same time try to get out of the help to buy trap.

bouicca21

Are you planning to have children together? If so rethink since it won't be just about the money.

If not, talk to a solicitor about the type of ownership and having a declaration of trust that gives you, say, a 30% rather than 50% share.

TBagpuss

There are different ways of looking at it - one is to bas it solely on contributions - e.g you could propose that you have a % split based on the % of the mortgage nad bills you each plan to pay - whch might be something like 80/20 in his favour.

Or you could take the approach that although you make different finanacial contributions, you each make equally valuable contributions to the elationship (perhaps you do more housework than him, or do other things which makehis life less stressful? )

If so, you could propose thathe gets his deposit back - so if the deposit is 5% he could have that and balance be equal, so you would own 47.5% and he would own 52.5%.


Another option would be to think about what you would need iof the two of you were to split up - conside rwhat a deposit and 6 months rent would take in todays prices, and use that as a starting point - e.g. if you would need £5,000 to be able to pay a deposit and 6 months renbt iof youhad to move out have an agreement which is based on that (e.g. £5,000 = 2% of the curent hosue value, so have an agrement that if you split up, you get a lump sum equal to 2-2.5% of the (then) value and he keeps that rest - in that case, you might also want to have a n agreement that yyou review the agreement once you waulify and adjust it if at that time you can start to pay a larger share of the outgoings.

There is no single right way to do it, but think about (a) what you both would feel was fair and (b) what, in practical terms, you would need if things were to go pear-shaped.

Build in to any agreement provision to review it regualrly.