2nd marriage property ownership structure?

Candice-Marie

We're trying to get our heads round a sensible and fair way to organise property-related changes coming up.  Any advice would be welcome!  The major motivator is to ensure our respective children can inherit from their own parent, but the surviving spouse can stay in the property. Also to protect our own interests in the event that the marriage breaks down. We both have a property each, we both have two children each from 1st marriage, all children have left home. We don't live together at the moment, have no joint finances or dependence on each other, and our individual wills (made since getting married) favour our own children with a relatively small bequest to each other.  

Stage One: My house is in the process of being sold, proceeds will be approx £250k after costs/mortgage.  I will move into my husband's house.  I will pay off his mortgage of £150k. His house is worth £400k.  We will contribute equally to running costs of the house when I move in.  Covid is disrupting work for the time being but under normal circumstances we both have similar earnings. 

Within 12 months stage two is to sell that house and buy a house together, taking out a modest joint mortgage.  

Thinking about stage one for now, when his mortgage is paid off, we can become tenants in common or joint tenants.  If tenants in common, is it too simplistic to think the split of ownership should be 37.5% : 62.5%  ? (My 'investment' of 150 being 37.5% of 400)  We will need to redo our wills at this point so the split is relevant for that aspect too.

Another option would be for me to pay the mortgage, and to give my husband £50k on the basis that our share of the house is then 50/50.  That sounds 'easier' going forward, but am I missing something obvious? Or not obvious, but vitally important?!
Thanks for any thoughts 
(Just to add, we would ask a solicitor to draw up any necessary paperwork)

getmore4less

I would keep it simple buy 1/2 his house now, you would only have to put the money in later anyway when you move if that place is going to be 50:50.

If the plan on first death is to give the survivor a life interest(IPDI trust)  then you may want to consider triggers other than second death that allow the remaindermen(your kids) to receive their shares, some put in remariage/new partner clauses.

Later you may want to look at skipping a generation.

if either of you became available for this second marriage through death of a spouse there are some IHT consideration with nil rate bands.

theartfullodger

Obviously relationships never fail and cunning plans to save tax never back-fire.

Artful, on 3rd successful marriage......