Looking to buy with partner with varied deposit contributions

Tom99

If your partner pays the 50% deposit and you split the mortgage 50/50, he is buying 75% and you are buying 25%.
But you are occupying 50% so your partner should be charging you rent on the 25% of his part you are occupying.
Ok that's a ridiculous suggestion but mathematically its correct.
What would be wrong with this:

[FONT=Verdana, sans-serif]On the sale of the property and after paying the sale costs and redeeming the mortgage the proceeds of sale shall be split as follows:[/FONT]
[FONT=Verdana, sans-serif]Party A – 50% of the gross sale price less costs of sale[/FONT]
[FONT=Verdana, sans-serif]The remainder – Split 50%/50% between Party A and B[/FONT]

[FONT=Verdana, sans-serif]The above formula is dynamic and the exact %age of the net proceeds each party gets will vary over time as the house increases in value and the mortgage is paid off.[/FONT]
[FONT=Verdana, sans-serif]
[/FONT][FONT=Verdana, sans-serif]Eventually when the mortgage is paid off Party A will own 75% and Party B 25%. In the meantime you are living rent free in the 25% you do not own and will have benefited by the much better mortgage interest rate his deposit will get you.[/FONT]

[FONT=Verdana, sans-serif]If you have [/FONT][FONT=Verdana, sans-serif]diddly squat how can you pay 50% of the renovation costs? If the renovation costs add a significant amount to the value you can adjust the above formula but until you know what those figures are you will not be able to work that out.
[/FONT]

getmore4less

Some people are cash poor income rich so can pay their way.

The OH could of course keep more of his money and just stick a smaller deposit and share a bigger mortgage.

Crazycatlady123

Thanks all for your replies.

For clarity, the example given was regarding a potential home of £700k that was ripe for refurbishment. We would increase our mortgage for an additional £100k to do the renovations/extension. There have been properties on the market in the same area that had had some extension completed and are fetching near to £900k. That is the simple principle on which we have been exploring this avenue.

I have pitched the suggestion already that any renovations completed we split by the % equity we would own - ie 75/25 but that makes it unaffordable for him.

As getmore4less has mentioned, my salary is comfortable and greater than his so although he has equity in his property, I have greater disposable income.

getmore4less

If you have the income then he keeps back some of his equity to fund his share of the ongoing costs and get a bigger mortgage that you pay more of from income.

Eg £700k house with £100k refurb budget

He drops £300k £100k cash for refurb you cover the £400k mortgage.

You own 50:50.