Deed of trust formula help

Fire_Fox

IMO make the equation simpler as others have said. Ideally pay a percentage each into the property, including any maintenance or improvements that will impact the value of the asset.

For now - before marriage, before children - if one person earns a good deal more ... Perhaps they could be solely responsible for paying for new furniture and/ or appliances and/ or shared media gadgets and/ or soft furnishings.

These are all portable so very flexible as to who ends up with what (and when) in the event of a relationship breakdown. Yes some will depreciate in value, but by no means all if you are MSE.

getmore4less

We will probably split the mortgage 60/40 or 65/35. So I'd get back 10% of the sale price, then 35% or 30% of the remaining equity after fees etc.

If the deposit is 10% you would get back 10% after fees(before the mortgage) not before.

Splitting the mortgage 60% 40% would be equivalent to owning 60:40 of 90%

The equity shares become 10%, 54%, 36% so 64:36 or 54:46 depending whic hway

if the 10% is attached to the 36% is so close to 50:50 might as well go with that as you then own equally.


the split side of things is the easy bit anyway, the sale(buy out) triggers are the more important ones to get right


Don't forget to include ALL purchase costs in the initial calculations not just the purchase price.

Anthony15

getmore4less wrote: »

If the deposit is 10% you would get back 10% after fees(before the mortgage) not before.

Splitting the mortgage 60% 40% would be equivalent to owning 60:40 of 90%

The equity shares become 10%, 54%, 36% so 64:36 or 54:46 depending whic hway

if the 10% is attached to the 36% is so close to 50:50 might as well go with that as you then own equally.


the split side of things is the easy bit anyway, the sale(buy out) triggers are the more important ones to get right

Wouldn't the 60/40% of 90% only work once we'd paid off the mortgage?

E.g.

If we were to split and sell in 5 years times, when we had built up say 20% equity. Then I would get 10% (i.e. half of that) then we would split the remaining 10% 60/40 in my partner's favour. So I'd get 14% of the house and she would had 6%. Which would be very far off 50/50!! Or am I confused?

AdrianC

Don't overthink it. Sit down with each other and a bottle of wine, and agree on something really simple that you each think fair.

Job jobbed.

If you can't do that, your relationship's doomed...
<tongue only slightly in cheek>

getmore4less

Anthony15 wrote: »

Wouldn't the 60/40% of 90% only work once we'd paid off the mortgage?

E.g.

If we were to split and sell in 5 years times, when we had built up say 20% equity. Then I would get 10% (i.e. half of that) then we would split the remaining 10% 60/40 in my partner's favour. So I'd get 14% of the house and she would had 6%. Which would be very far off 50/50!! Or am I confused?

The intention was you adjust the mortgage from 40:60 so you own 50:50 mortgage spit becomes 44.33% 55.67% with a 10% deposit

you split the house proceeds 50:50 and then pay off your shares of the mortgage from that.


You may find it easier to understand the loan(get your money back) method

Tom99

Anthony15 wrote: »

Wouldn't the 60/40% of 90% only work once we'd paid off the mortgage?
E.g.
If we were to split and sell in 5 years times, when we had built up say 20% equity. Then I would get 10% (i.e. half of that) then we would split the remaining 10% 60/40 in my partner's favour. So I'd get 14% of the house and she would had 6%. Which would be very far off 50/50!! Or am I confused?

Yes that's correct. You can only have a simple split 60/40, 90/10 or whatever when the mortgage is paid off. Until then you need your two part formula with you getting 10% of the gross sale price less costs of sale and then what's left, after redeeming the mortgage, is split in accordance with your formula.
Since the split of the 'remainder' is not going to be a fixed percentage you need to be very precise as to how this percentage split will be calculated.