Help with conveyancing issues

Paula1987

Hi!
My partner and I have decided to buy.a house, but it is being difficult thinking how to sort out the legal logistics regarding the coveyancing as we are in a slightly unusual position.
Basically I have 1/4 of the asking price as a deposit, and my father has kindly offered to loan me the rest to buy the house. Then the idea is my partner and I pay him back those 3/4 of the money monthly, split 50/50 (a bit like a mortgage, but no interest etc).
Now, the issue is that since we are buying cash and there won't be a mortgage, on paper it looks like the house will be mine from the beginning. It wouldn't make any sense to add my partner's name to the deeds before he has paid a considerable sum (we expect to pay back in 20 years so this could take a while...).
Does anyone know how could we go about making this happen? I was thinking is it possible for me to release equity of the house and for him to buy a share and start paying his monthly half towards that? Shared ownership? We are completely new to house buying and in a very fortunate situation, yet very confused about what to do about this issue. We will of course find a solicitor to talk to but we would like to see if anyone around here has any advice too. many thanks

Rambosmum

There are lots of options really, and you'll need a solicitor to draw up the paperwork, but to me, the simplist would be a deed of trust or similar which states you own x (25%) and your dad own y - n (75% - the amount you pay him, which will go up over time) and you and your partner own n/2 (the amount you've paid your dad divided between the two of you).

So part way through this arrangement you will own 25% + half of what you've paid your dad, your partner will own half of what you two have paid your dad and your dad will own whatever is left. Whether the deed of trust stipulates your ownership is a lump sum plus n/2 or is 25% plus n/2 isup to you (the latter will in the long term give you more return).

silvercar

You don't need or want to put your Dad on the deeds for lots of tax reasons - stamp duty on purchase, possible CGT on sale, potential inheritance tax issues in the future.

Have the property held in joint names with a deed of trust noting the split between you and your partner. Then register your Dad as having a charge (effectively a private mortgage) on the property deeds.

Paula1987

Hi, thanks for the answer. We definitely want my dad out of the issue. I did not give all the details from the start as I thought they were irrelevant, but it is not my dad by in fact the family company lending me the money. The family company is in Spain as well, so basically in the end the way it looks is I have all the money and I buy the house - my dad does not want to own any of it and in order to avoid paying inheritance tax etc is better to keep it that way too. The point had more to do with how to give my partner the security that his monthly payments will guarantee him a proportional share of the house in the end, even if legally the house is paid in full from the start.

Paula1987

Hi thank you - as I was just saying, my dad wants nothing to do with the house. And in fact the money is not legally being loaned by him but by the family company. Also all of this is in Spain which complicates further the issue, so the idea would be that I simply buy the house with the loaned money as my own.
Now, about the deed of trust - does this mean that my partner would own a share of the house from the beginning, even though he has not paid it yet? Basically we both want to cover our backs (even though we obviously don't think we'll split up and even if we did we are fairly civilised people, but you never know!) to make sure that he will get a share proportional to what he has paid up to the point we sell it (or if we finish paying it before selling it). On my side I wouldn't want him to own a share of the house from the beginning because that means that he would be able in theory to claim this share without having paid for it either. I hope this makes sense? Also excuse my ignorance if I am assuming wrong things, I am just so new to all of this.
Many thanks again

Adereterial

You’re effectively entering into a private mortgage and should consider it as one. I have similar except I borrowed pretty much all of the money rather than a percentage. The agreement I have is legally binding and a charge is registered against the property for the amount left outstanding should I default, to bankrupt etc.

My husband is not named on the deeds - that was the agreement I came to with the person who lent me the money. Once it’s paid off or the person I owe the money to does, I’ll add him to the deeds. In the meantime we have a separate written agreement that he’ll get 50% of the equity should we separate. The full equity is left to him in my will and as long as he maintains the mortgage payments he’ll be able to remain in the property if he chooses should I die before him.