Declaration of trust query

daffodil11

Hi all
I am buying a property with my partner as tenants in common as I have two children from previous relationship. I am solely putting down the deposit for the property but the mortgage will be in both names with both of us paying. Therefore I am taking out a declaration of trust to protect my deposit. However I am unsure whether to state this as the lump sum of what I’m paying (e.g 50k) or as the percentage (e.g20%). Obviously I understand the percentage will allow my investment in the property to increase but then it could potentially decrease too if house prices were to fall. Obviously we wouldn’t want to sell if house prices decrease but may not have a choice depending on circumstances. This is all worst case scenario stuff but I just want to make the best choice for protecting my investment for my children.
Many thanks

Tom99

[FONT=Verdana, sans-serif]Based on you putting up 20% as the deposit but sharing the mortgage 50/50 you DOT might say something like this:-

[/FONT] [FONT=Courier New, monospace][FONT=Verdana, sans-serif]"NOW THIS DEED WITNESSES as follows:[/FONT][/FONT]
[FONT=Courier New, monospace][FONT=Verdana, sans-serif] The parties hereto declare that they hold the Property on a trust of land to the parties herewith DELCARE that they hold the property and the proceeds of sale (after discharging the mortgage and deducting there-from the costs of sale) and the net rents and profits until sale UPON TRUST for themselves as Tenants in Common

[/FONT][/FONT] [FONT=Verdana, sans-serif] (a) as to 20% of the gross sale price of the Property less costs and fees for [/FONT]
[FONT=Verdana, sans-serif]Partner A absolutely together with half of the remainder and

[/FONT] [FONT=Verdana, sans-serif] (b) as to half of the remainder as above for Partner B absolutely"

[/FONT] [FONT=Verdana, sans-serif]That way you get any increase in value on you 20% plus 50% of the increase due to the mortgaged amount and your partner get 50% dues to the mortgage amount also.[/FONT]

getmore4less

risk reward why should you get all the reward but none of the risk.

Tom has shown the equity based 20% version


If you want to use the "get the deposit back version" that is the same as lending your OH 1/2 your deposit interest free.