Switch from joint tenants to tenants in common.

kittennose

My partner and I both put different deposits down on our property, with me contributing a much larger share.

Our legal docs state we are Joint Tenants, as the difference at the time wasn't really explained to us by our solicitor; but when queried we were told this can easily be changed afterwards.

It's something we keep putting off but I think it's wise to get this sorted.

I understand I need a solicitor to swap this around, though there are some resources that suggest I can do this myself?

I also understand I need a Declaration of Trust?

Tom99

[FONT=Verdana, sans-serif]Yes you should employ a solicitor to draw up a deed of trust I would not chance DIY.[/FONT]
[FONT=Verdana, sans-serif]They might charge £200 - £500 so shop around.[/FONT]
[FONT=Verdana, sans-serif]You will need to work out what the DOT will say, usually you need to know how much deposit you each put in and how you are sharing the mortgage arrangements to work out a formula.[/FONT]

kittennose

Thanks Tom - is it better to use a conveyancing firm for this?

We have 50/50 mortgage repayments but different deposits

Tom99

[FONT=Verdana, sans-serif]Any local conveyancing solicitor should be able to help. Other forum members report using one of the online offers which are cheaper.

[/FONT] [FONT=Verdana, sans-serif]If you have unequal deposits but 50/50 on the mortgage then you might work things out like this example:

[/FONT] [FONT=Verdana, sans-serif]Price £300k with A's deposit of £100k and B's £50k
.[/FONT]
[FONT=Verdana, sans-serif]Therefore A has bought 16.7% more of the house than B (100-50)/300

[/FONT] [FONT=Verdana, sans-serif]The deed of trust could then say that on a sale:

[/FONT] [FONT=Verdana, sans-serif]A gets 16.7% of the gross sale price then

[/FONT] [FONT=Verdana, sans-serif]A & B split what's left after deduction the mortgage 50/50

[/FONT] [FONT=Verdana, sans-serif]So if the house sold for £400k with a mortgage reduced to £100K:-

[/FONT] [FONT=Verdana, sans-serif]A = 16.7%*£400k= £66.8k + (£400k-£100k-£66.8K)/2= £116.6 = £183.4K[/FONT]
[FONT=Verdana, sans-serif]B = (£400k-£100k-£66.8)/2 = £116.6

[/FONT] [FONT=Verdana, sans-serif]So A gets £66.8k more than B which is the extra £50k they put in times the house price inflation of 33.3%[/FONT]