Unequal Ownership

TopOsprey

I totally agree. But, although I am not a psychologist, I know that if you need money, you are going to do everything to get as much as possible.

It was going to be my question - I was going to ask - If we sell the house, will the money be transferred by the solicitor to our (private) accounts? This would probably help me get my 60% without really informing her about her 40%. Bit risky...

I am afraid, it is going to be a Sisyphean job.

In theory we can end up living together till one of us dies...

TopOsprey

The following formula (from the Guardian's article)

"To do this you each add your cash deposit to half the initial mortgage loan, divide by the purchase price and multiply by 100".

On the top of my deposit I invested around 20k, she did not contribute

Mortgage 50/50, as well as bills

getmore4less

TopOsprey wrote: »

The following formula (from the Guardian's article)

"To do this you each add your cash deposit to half the initial mortgage loan, divide by the purchase price and multiply by 100".

On the top of my deposit I invested around 20k, she did not contribute

Mortgage 50/50, as well as bills

ignore bills(except buildings insurance) they are living costs not purchase costs

if you put £20k in and the mortgage was 50:50 and you worked out 60:40

Purchase would have been £100k and mortgage £40k each

what's the mortgage and value now?

Your 60% is the value less 1/2 the outstanding mortgage.

Tom99

If the 60/40 was recorded on the TR1 when you bought then on a sale you will get 60% of the net proceeds after sale costs and mortgage redemption.
That may not be what you think you are due. If your deposits were un-equal you should have had a deed of trust with a two part formula to reflect your higher deposit eg:
On sale the net proceeds to be divided:
Party A - x% of gross sale proceeds less costs of sale plus 50% of remainder
Party B - 50% of remainder

TopOsprey

Property: 116k
Deposit: ~23k

Her 3k, but that went towards the solicitors

TopOsprey

Hi
I put the deposit ~23k plus another 20k - builders, furniture, new bathroom, windows, etc
Mortgage value less than 70k, hose value around 200k

Tom99

TopOsprey wrote: »

Hi
I put the deposit ~23k plus another 20k - builders, furniture, new bathroom, windows, etc
Mortgage value less than 70k, hose value around 200k

£200,000 less £70,000 = £130,000 split 60%/40%
You get £78,000 and your partner £52,000
Is that what you were expecting to get?

getmore4less

TopOsprey wrote: »

Property: 116k
Deposit: ~23k

Her 3k, but that went towards the solicitors

Should have been

Total cost £119 mortgage £93
Split. 69.5: 49.5

58.4% 41.6% before taking 1/2 remaining mortgage.

getmore4less

TopOsprey wrote: »

Hi
I put the deposit ~23k plus another 20k - builders, furniture, new bathroom, windows, etc
Mortgage value less than 70k, hose value around 200k

What was the agreement for that £20k?

Exodi

getmore4less wrote: »

What was the agreement for that £20k?

I'd imagine it's superfluous, the interests are registered as shares through the TR1 and not as a DoT for which such an agreement would be ideally be reflected.

If we're to use the figures provided by the OP, the house would be sold for £200,000, the mortgage discharged and the remaining equity split 60:40.

Disregarding selling fee's and other related expenses, less the initial outlay the OP 'makes' 35k and the OP's partner stands to make '52k'.

Formal Declaration of Trusts can be disregarded by courts so the OP stands no chance of any informal agreement being taken seriously. The OP's partner could easily argue that the 20k was taken into consideration when the shares were decided (although in this case, she doesn't seem to be aware there are shares!)

EDIT: Also to note, a Declaration of Trust is commonly used to outline who is responsible (financially) for selling the house and can be used to reimburse them. I mention this as you will likely have ~£4,000 in estate agent fee's payable of which you can't force her to contribute. You also have the issue of the contents of the house, I'd imagine your partner expects to take half of this also?