Buying with partner who has large cash deposit

Quidz

Hi - wonder if anyone can assist with this situation:
Looking to potentially buy a property with my girlfriend.
She has a large cash deposit and mine is relatively small. For her assurance and my comfort should we separate (not that either of us foresee that, obviously) I'd not want to have any opportunity to claim any of her investment and presume mortgage companies won't give me a mortgage for my 50% share - in the event I don't repay they can't reclaim half the flat!?
What is the best way round this situation so both parties are protected in the event we split? A separate contract stating XYZ would be owed to Miss Q in the event of a sale of the property?
We would both need to be named on the mortgage I presume - even though I'd be paying it?
Thanks in advance.

dimbo61

You can sort this with a solicitor so the different deposits are taken into account.
The mortgage lender will want both parties on the mortgage, who pays it each month is irrelevant.

Socajam

Get an agreement where in the case of the relationship going south, the initial deposited would be returned to both parties and then the remainder is split 50/50
If your girlfriend thinks that she should be given more after the initial deposit is removed, I reconsider buying with her.

Quidz

Thanks guys, that's a great help. Both first time buyers, so all new to us.

Windofchange

We did exactly this with a deed of trust. We stipulated that after the bank is repaid, my girlfriend will get the first £xx,xxx and then the rest is to be split 50/50. Our solicitor charged about £200 I think from memory to draw this up as part of the conveyancing process. 

getmore4less

If as you suggest there will be a 50% cash deposit and a mortgage for the other 50% you will be paying

Go with the you pay all the mortgage and you own 50:50 if you can afford it.
Paying the mortgage will you also be able to afford 50% of any upgrade and maintenance?

(will need adjusting if you have some deposit or need to split the mortgage)

getmore4less

Windofchange said:

We did exactly this with a deed of trust. We stipulated that after the bank is repaid, my girlfriend will get the first £xx,xxx and then the rest is to be split 50/50. Our solicitor charged about £200 I think from memory to draw this up as part of the conveyancing process. 

if you paid the mortgage 50:50 that is the same as the GF giving you  an interest free loan for half of that £xx , fine if she was happy with that.

getmore4less

Socajam said:

Get an agreement where in the case of the relationship going south, the initial deposited would be returned to both parties and then the remainder is split 50/50
If your girlfriend thinks that she should be given more after the initial deposit is removed, I reconsider buying with her.

Not a very good way to do it if the OP is paying all the mortgage they should get 50% of the value less the remaining mortgage(if the deposit was 50% as they suggest)

(adjusted if they do have a bit of a deposit)

NicTin01

Quidz said:

Hi - wonder if anyone can assist with this situation:
Looking to potentially buy a property with my girlfriend.
She has a large cash deposit and mine is relatively small. For her assurance and my comfort should we separate (not that either of us foresee that, obviously) I'd not want to have any opportunity to claim any of her investment and presume mortgage companies won't give me a mortgage for my 50% share - in the event I don't repay they can't reclaim half the flat!?
What is the best way round this situation so both parties are protected in the event we split? A separate contract stating XYZ would be owed to Miss Q in the event of a sale of the property?
We would both need to be named on the mortgage I presume - even though I'd be paying it?
Thanks in advance.

We are in a similar situation where I have the majority of the deposit for our house however the mortgage and bills will be entirely 50/50 and any home improvements will also be 50/50. We have gone for tenants in common with a deed of trust which reflects I put more into the deposit and that is protected but should we sell the house and make money, that profit would be split 50/50. The same solicitor who is doing our purchase is doing the deed of trust and chucked it in for free. She gave us great advice at the time so I’d advise speaking to a solicitor too when you get into the process.

Windofchange

getmore4less said:

Windofchange said:

We did exactly this with a deed of trust. We stipulated that after the bank is repaid, my girlfriend will get the first £xx,xxx and then the rest is to be split 50/50. Our solicitor charged about £200 I think from memory to draw this up as part of the conveyancing process. 

if you paid the mortgage 50:50 that is the same as the GF giving you  an interest free loan for half of that £xx , fine if she was happy with that.

It'll be about 65 / 35 re: the mortgage payments with me on the 65 side. She had the deposit, I have the salary. It's worked quite well...

getmore4less

Windofchange said:

getmore4less said:

Windofchange said:

We did exactly this with a deed of trust. We stipulated that after the bank is repaid, my girlfriend will get the first £xx,xxx and then the rest is to be split 50/50. Our solicitor charged about £200 I think from memory to draw this up as part of the conveyancing process. 

if you paid the mortgage 50:50 that is the same as the GF giving you  an interest free loan for half of that £xx , fine if she was happy with that.

It'll be about 65 / 35 re: the mortgage payments with me on the 65 side. She had the deposit, I have the salary. It's worked quite well...

If the mortgage was split to make the deposit + mortgage shares 50% then the split should be 50% before paying off the mortgage then pay off the shares of the outstanding mortgage.

You can never own 50% if they get their deposit back first.