Help. Unequal deposits

Angusjon

I'll try make this simple but need advise ASAP. 
I'm 54 fiance 59. We want to buy a house together. Partner has £375000 deposit towards house (he has sold his house). I will have £180000 once mine has sold. We have found house so he is going to get mortgage for shortfall until mine is sold then I will give him £180000 to pay off mortgage and then he wants to put me on house deeds and should worse happen we split house 50/50. Without sounding greedy I need this to happen because if we were to get divorced let's say in 10 years time, (we're planning on marrying next year) then if we had an agreement in place whereby I only get out what I put in plus 50/50 on if house prices went up, then I would still at best come out with £250000, at 65 which I would be then I wouldn't be able to buy a house, whereas if I kept my house in 10 years my mortgage would be paid off and I would have £400000. My question is before I sell and before he initially buys the house can we put in place an agreement where we agree to the 50/50 split which would be legally binding. Thank you for your help and advise

pphillips

You would need to get a prenuptial agreement drawn up and both get independent legal advice before execution.

barbarawright

Prenups have no validity in England though

pphillips

barbarawright said:

Prenups have no validity in England though

They can according to the UK Supreme Court in Radmacher v Granatino.

MovingForwards

Declaration of trust.
10 year marriage could probably overrule the DoT and things go 50/50 as it would be classed as a long marriage.

It's very generous of him to want to do 50/50 considering its 2/3 1/3 to your OH due to him putting in double what you are.

I would suggest you also have your own savings account, just in case anything happens.

Is there any reason you are not having a joint mortgage until your house is sold?

pphillips

MovingForwards said:

Declaration of trust.
10 year marriage could probably overrule the DoT and things go 50/50 as it would be classed as a long marriage.

It's very generous of him to want to do 50/50 considering its 2/3 1/3 to your OH due to him putting in double what you are.

I would suggest you also have your own savings account, just in case anything happens.

Is there any reason you are not having a joint mortgage until your house is sold?

Interesting that you suggest a DoT, I had thought of this but decided they were more suited to unmarried couples. I don't know what weight, if any, they would have on divorce.

JReacher1

I’m a bit confused as to why your £180k would be worth £400k in ten years if you had stayed in your own house. 

As you are moving to a mortgage free home does that not mean you’ll save your mortgage payment each month? Why don’t you use that to build up your savings for a decent level. 

Also in ten years you would hope a half million pound house would be worth say £700k so if you did split up you would get £350k. 

Gycraig

I'm confused, your house / your equity in your house is 180k yet in 10 years you think that would be worth 400k, 

yet you think 550k house would only go up 150k ? Leaving you with 255?. 

So your 180k house is gonna be go up 220k  in ten years but you think a 550k house is barely gonna go up 150k ?. 

 

His 370k house would likely of gone up far more than your 180k house as well over 10 years 

HampshireH

If you are buying a home together you are best to go on the deeds from the start. I'm not sure why you wouldnt if you are just going to pay the mortgage off on completion of your sale?

If he effectively sells you half later down the line you may be liable for stamp duty on the part you purchase. I may be wrong. Also futher fees.

I can see you have posted this on house forum page too

When you get married any agreement goes out the window anyway.

MovingForwards

I suggested a DoT because OP  isn't married to partner, planning to marry next year isn't being married, being engaged isn't being married. Who know what will happen next year.

conradmum

I don't want to be negative but what's to stop your fiance accepting your 180K, paying off the mortgage and then refusing to put your name on the deeds? It might sound unlikely but something similar happened to a friend of mine that resulted in her losing her home. After a court battle she got back some of the value, minus court costs.