Buying a house with girlfriend, ways to protect deposit?

Muskman

Hi,

I am looking at purchasing my first house with my girlfriend and as we are quite sensible in our thoughts we wan't to consider any situations that might occur and therefore protect our own interests.

We're looking at buying a house where I will provide the deposit but we will split the mortgage payments 50/50. We aren't planning on children or marriage so what can we do to protect our interests should we split up?

Are there any legally binding documents we can sign so if we did split up we would have to sell the house/one buy the other out. If there is how would you calculate any equity vs the deposit I would be putting in?

We have both come from families where we have witnessed people losing out financially etc so we're very cautious!

I have read there are Declaration Of Interest & Cohabitation Agreements but are these worthless should things get sticky and we'd need to take legal action etc against each other.

It's a really cynical way of looking at buying a house but we're not wealthy and wouldn't want to be left with nothing!

Thanks
Ben

Thrugelmir

A Declaration of Trust is a legal enforcable document. Speak to your solicitor.

getmore4less

decide if the deposit is an interest free loan(gt your money back) or equity it buys part of the house.

don't for get all the other purchase costs they need to be included as part of the deposit.

goodwithsaving

It isn't cynical. I bought a house thinking it was forever, it wasn't.
Consider what each of you brings to the table e.g. high deposit lower earner, lower deposit higher earner. Then discuss the fairest way e.g shares, or interest free loan and 50:50 equity split.
We buy insurance hoping not to need it. It's the same with DoT's.

Muskman

Hi guys,

I will think about the way the money is invested etc but I didn't wan't to get into these realms if a Declaration of Trust wasn't worth anything if things got sticky and we had to go to court. I guess we can write on up with as many details as we see necessary for the right thing to happen for both parties?

Thanks

csgohan4

Does the House come with a live in girlfriend?

Thrugelmir

Muskman wrote: »

if a Declaration of Trust wasn't worth anything if things got sticky and we had to go to court.

That's why you need to speak to your solicitor and get the document drawn up correctly. As the agreement will form the basis of any claim made in court.

glentoran99

another way could be, presumings its 10% deposit is you hold 55% of the house and she holds 45%

JimmyTheWig

You need to come up with a range of scenarios of house price and mortgage outstanding and decide who should get what in each case.

Though would it not be easier to rent for a while until you are ready to commit to each other?

kerryclear

Funnily enough, me and my ex bought a house together. We bought a house with my deposit entirely, but only his name on the mortgage because I was only working part time and they didn't want to know. Therefore, though we split payments 50/50, essentially he could do one with the whole house. However we had a sort of legal prenup written up that stated should be split, the house, despite being only in his name, would be sold, the sale would be split and I would get my 10% deposit back out of it. (Turned out he just signed it over to me though and we never needed to use the prenup. But the peace of mind was there)

fraser

tenants in common?
https://www.gov.uk/joint-property-ownership/overview