What contract?joint ownership but paying different amounts?

RealFTB

Hello all!
i am after a bit of advise please if possible as not sure how clear cut this is...
so situation is me and my partner are FTB... using HTB
i am paying the 5% deposit so we could go tenants in common with that however the issue is my salary is lot higher than partners so I will be looking to pay the HTB back before the 5 years are up and over pay mortgage where possible.
i am trying to understand how I can get something in writing that should we split I am protecting the overpayments and additional contributions I have made. Over the years the percentage of ownership will change the more I contribute. I don’t envisage us splitting and are due to be married however I have a friend who is now in this boat had overpaid the mortgage massively and it’s looking like a 50/50 split. I just want to protect myself should the worse happen. Like wise I may lose my job and my partner maybe the main contributor therefore we need it fair in both ways so we are protected.
whatever the mortgage payments and bills will be we plan to pay 50/50 it’s just purely on the overpayments I intend to pay and pay off HTB.
thank you and any help or advice would be great

[Deleted User]

RealFTB said:

Hello all!
i am after a bit of advise please if possible as not sure how clear cut this is...
so situation is me and my partner are FTB... using HTB
i am paying the 5% deposit so we could go tenants in common with that however the issue is my salary is lot higher than partners so I will be looking to pay the HTB back before the 5 years are up and over pay mortgage where possible.
i am trying to understand how I can get something in writing that should we split I am protecting the overpayments and additional contributions I have made. Over the years the percentage of ownership will change the more I contribute. I don’t envisage us splitting and are due to be married however I have a friend who is now in this boat had overpaid the mortgage massively and it’s looking like a 50/50 split. I just want to protect myself should the worse happen. Like wise I may lose my job and my partner maybe the main contributor therefore we need it fair in both ways so we are protected.
whatever the mortgage payments and bills will be we plan to pay 50/50 it’s just purely on the overpayments I intend to pay and pay off HTB.
thank you and any help or advice would be great

Get a Deed of Trust drawn up.  

RealFTB

But would it be able to be worded as such that any overpayments go back to the person who paid them etc or more contributions equals higher percentage 

RealFTB

I understand I can protect my initial 5% but would this also protect future contributions.
thanks again 

[Deleted User]

RealFTB said:

But would it be able to be worded as such that any overpayments go back to the person who paid them etc or more contributions equals higher percentage 

You can have it worded however you like.  You should both take independent legal advice on the wording of it.

RealFTB

Ok great we would want the principle of if one of us died the house would go to the other but just want that protection initially. Thank you  

MovingForwards

A declaration of trust to start with. Plus a will to specify what happens if you die.

A new declaration of trust each time you alter the ratio.

RealFTB

Thanks all...
A new declaration each time seems crazy if I over pay mortgage £1000 per month I’m potentially by 0.5% per month and then I have to pay to have a new declaration of trust done every couple months... surely there is something I can have written up initially to state any overpayments paid by an individual will be worked out if the property ever needs dividing or splitting up?

MovingForwards

Have a chat with a solicitor and see what they say, probably best to have your conveyancer do it to potentially save on additional costs of doing it as a standalone job.

If you know you are overpaying by £1k each month, then that can be included in the DOC, you are muddying the waters by wanting a document to cover unknown future circumstances.

A DOC is usually:

A paid £x deposit.
B paid £y deposit.

A pays 60% of the mortgage and other costs / maintenance etc etc.
B pays 40% of the mortgage and other costs / maintenance etc etc.

On separation / sale / buyout of the property, after legal fees / mortgage redemption / estate agent fees and other fees associated with the sale / buyout. A gets X deposit, B gets Y, then the rest is split A gets 60% and B gets 40% of any equity.

You may also want to look at a cohabitation agreement as that deals with furniture / possessions and other things.