Moving in together

monkey21

I know there has been several posts similar but I feel this is a slightly different situation.

Me and my partner have been together for four years now and are both wanting to move out into our first house. We have decided we are not at that point in our relationship to have a joint mortgage as we haven't lived together yet, so he will be be the only on on it - he is a few years older (27) and I have just graduated last year (23). But in a few years time when it comes to remortgaging, if everything is well, I would be put on the mortgage as well.

We have already agreed we would be splitting the bills/utilities 50/50 but are not sure what to do about the mortgage.
The house we are looking to buy, he would not buy on his own as it would not be affordable for him. NOTE: Him getting the mortgage isn't an issue.
I am likely to be helping with the deposit and putting money into renovating the house before moving in and designing much to it. He has agreed that we will sign something to say this money is mine in case it doesn't work out so this is fine as i would get it back.

He would also like me to contribute half to the mortgage, and I am happy and able to do so but I feel I should then be entitled to some of the house as potentially I would be paying half his mortgage for him for a number of years. Obviously if things work out and I do get put on the mortgage in the future then this isn't as much of an issue.
Currently I am living at home still and am lucky that so far my parents only ask for very minimum in contributions. I would also stay living at home until i could buy somewhere myself - i.e. I would not be paying rent elsewhere and my outgoings would be small.

Should he expect me to pay half the mortgage every month in return for no interest in the property, therefore greatly benefiting him but disadvantaging me?

Thank you :j

gwynlas

Fairly straightforward deed of trust detailing percentage of deposit paid and agreeing timescale for sale of property/buyout if you split.
You might agree to just take your share of deposit back or split equity along same lines but hardly fair if you both pay bills 50/50.
Do get wills done at same time detailing what you want to happen with your share should you die.

Andyjflet

No, unless you are happy to see it as a flat mate arrangement.

Tom99

gwynlas wrote: »

Fairly straightforward deed of trust detailing percentage of deposit paid and agreeing timescale for sale of property/buyout if you split.
You might agree to just take your share of deposit back or split equity along same lines but hardly fair if you both pay bills 50/50.
Do get wills done at same time detailing what you want to happen with your share should you die.

This is the correct way to legally document what you want.
The deed of trust would dictate how the net proceeds of a sale (or the then open market value if one party is buying out the other) are to be split between you.
For example say your partner is putting up a 30% deposit based on the total costs of buying, including legal fees and stamp duty. You are not putting in any deposit but you are splitting the mortgage 50%/50%. Your deed of trust might say something like 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 – 30% 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 takes account of the amount of mortgage repaid over time so if you split up next week you would get nothing but if the arrangement continued until the mortgage was paid off your partner would get 65% of the sale price and you 35% because that's what your 50% of the mortgage would be buying.
[/FONT]

Neutrinno

monkey21 wrote: »

Should he expect me to pay half the mortgage every month in return for no interest in the property, therefore greatly benefiting him but disadvantaging me?

I don't see why not, what is your disadvantage? If he didn't split it you would be living rent free which you wouldn't get elsewhere.

Mojisola

monkey21 wrote: »

The house we are looking to buy, he would not buy on his own as it would not be affordable for him.

Currently I am living at home still and am lucky that so far my parents only ask for very minimum in contributions. I would also stay living at home until i could buy somewhere myself - i.e. I would not be paying rent elsewhere and my outgoings would be small.

Neutrinno wrote: »

I don't see why not, what is your disadvantage? If he didn't split it you would be living rent free which you wouldn't get elsewhere.

Because he's getting a bigger property than he could afford on his own and she would be missing out on saving for her own place.

Thrugelmir

monkey21 wrote: »

The house we are looking to buy, he would not buy on his own as it would not be affordable for him.

Then you'll need to be named on the mortgage. Make it official. If things don't work out the property may need to be sold. This is when the DOT protects your financial interests. Contributing financially with no security isn't advisable. As your partner will hold all the cards. Legal disputes can result in very high costs

monkey21

Neutrinno wrote: »

I don't see why not, what is your disadvantage? If he didn't split it you would be living rent free which you wouldn't get elsewhere.

Because as I said I do not want to get stuck in renting and If i did not move in with him (which I obviously would like to), I would remain living with my parents and saving for a deposit myself.
By paying him half the mortgage and not receiving interest in the property, I am unable to save for myself while helping him pay for his mortgage. Say we split in four years time, I could effectively have paid £20k of his mortgage for him and I would be left with no money to buy a house myself.
Therefore benefiting him, getting a property that he couldn't otherwise buy without me, while I am left with nothing if we split down the line.

Socajam

Put your name on the mortgage and go 50/50 with everything, otherwise DO NOT DO IT.
He is getting the pie and you are getting the crumbs.
If you name is on the mortgage you have more security if you were to split in the future.
Please do a search on here and read up on all the people who are going to hell with what you are planning on doing.
You may think that living with your parents is not ideal, but trust me if the crap hit the fan later down the years with your boyfriend, you would wish that you had stayed at home.
As I told my cousin, Love is a Wonderful, but it becomes Hell on Earth when split comes and you wonder where is that loving person that I fell head over heels in love with.
Protect yourself from the start, this way you will not become a statistic like those on here who have a gigantic mess to sort out - been there done it and never again.

ACG

What you want to do is possible but your choice of lenders is going to be very slim.

For all intents and purposes you are going to jointly own the property and you are going to be jointly contributing to the bills and potentially mortgage... why not just buy the thing jointly? Ultimately if you split up you are still going to be arguing over who owns what at least with joint ownership you are both fighting from a level playing field.

It sounds like you are really over complicating things trying to make it simpler.

If you cant decide all this, buy a cheaper home. You contribute half towards the bills and put money aside each month, if you decide it will work out, when your name goes on the mortgage you can also pay off a lump sum of the mortgage.

getmore4less

Read your own post.

You are buying a house together.

Deposit renovation and sharing paying the mortgage.

The easy part of any deed will be finances.

Terms in the deed dealing with splitting will be the nightmare to ensure a buyout or sale.