First time Buyers Advice needed

Neutrinno

RJeff wrote: »

And if we were to split up, I would be able to have a share in the property, as long as it is pre-determined beforehand how much of this share I would have? is that correct?

It depends on how the ownership is set out; joint tenants or tenants in common.

Have a read of this which may explain a little better for you:
https://www.which.co.uk/money/mortgages-and-property/first-time-buyers/guides/buying-a-home/tenants-in-common-vs-joint-tenancy

RJeff

Neutrinno wrote: »

It depends on how the ownership is set out; joint tenants or tenants in common.

Have a read of this which may explain a little better for you:



Would it be solicitors who then draft the tenants in common agreement?

Neutrinno

RJeff wrote: »

Neutrinno wrote: »

It depends on how the ownership is set out; joint tenants or tenants in common.

Have a read of this which may explain a little better for you:



Would it be solicitors who then draft the tenants in common agreement?

Yes. You would decide on what sort of ownership and they would draft it out etc.

RJeff

Just to conclude everything now. If I was to decide:
1.) Myself and My partner are both on the mortgage.
2.) My partner pays the monthly mortgage payments, and I pay the monthly bills.
3.) My partner pays the deposit or 4.) be both contribute to the deposit however 75% of this will be my partners and 25% of this will be mine


What are the pros and cons of this?
And if I was to go for option 4 instead of 3....the correct thing for me to do would be to get some sort of agreement in place such as a tenancy in commons which says I get 25% of the share should we split up?


Thank you!

kingstreet

Whatever you want to happen, you are better off purchasing jointly with a joint mortgage.

You purchase jointly, tenants in common.

You have a deed of trust drawn up which deals with your unequal deposit and payments situation and this will determine the level of equity each holds under tenants in common and will determine who gets what in the event of a break up with a loss, profit or break-even.

Don't forget, you need to make a will as TIC leaves your share of the property in your estate on death, not left to your partner as it would be under a joint tenancy.

juniordoc

If you contribute to the deposit too you are likely to get a better LTV and therefore a better mortgage rate.
The business of your partner paying mortgage payments and you paying bills may make things more difficult if you split later as the amount you have "contributed" will be more difficult to evidence than the mortgage payments, and it could be argued that you'd have these bills to pay regardless of living in a house with your partner or not.
For this reason it might be better for you both to split mortgage payments (even if you pay 40% and your partner pays 60% if they are the higher earner) in order to cement your claim to the equity in the event of a split

RJeff

So it would be better for me to get an agreement from the start really. Say my deposit is 5000 and my partners is 20000, that would mean we split it 20%/80% from the start so if we did break up, I'd get 20% of the property value back? Is that correct?

Neutrinno

RJeff wrote: »

So it would be better for me to get an agreement from the start really. Say my deposit is 5000 and my partners is 20000, that would mean we split it 20%/80% from the start so if we did break up, I'd get 20% of the property value back? Is that correct?

Of the equity, not property value.

enthusiasticsaver

If you are in a position to pay towards the property then yes you should and as already said if you wish to be named on the deeds and have a share of it you will have to be on the mortgage. If you weren't on either and lived there for 20 years and then split up would you not be miffed that you walked away with nothing and effectively had just helped him build up his equity by contributing to bills?

If you pay £5000 deposit and he pays £20000 you could do tenants in common with you owning unequal shares. Would he be happy though with you only paying 20% of the mortgage payment and how would that leave you both financially if he was carrying the lions share of the mortgage and presumably the bills split 50/50?

RJeff

enthusiasticsaver wrote: »

If you are in a position to pay towards the property then yes you should and as already said if you wish to be named on the deeds and have a share of it you will have to be on the mortgage. If you weren't on either and lived there for 20 years and then split up would you not be miffed that you walked away with nothing and effectively had just helped him build up his equity by contributing to bills?

If you pay £5000 deposit and he pays £20000 you could do tenants in common with you owning unequal shares. Would he be happy though with you only paying 20% of the mortgage payment and how would that leave you both financially if he was carrying the lions share of the mortgage and presumably the bills split 50/50?

So if I pay 20% deposit, I'd continue to pay 20% of the monthly mortgage payments? Is that how it works?
Also at what point would you request a solicitor to draft up the deed of trust? Before or after you find a property?
Also if we find we are working well living together, are we able to remortgage and change from a tenants in comments to a joint mortgage?