Buying with partner, which costs are fair to share?

Aranyani

rik111 said:

Aranyani said:

If I were you I'd just buy on your own again, and let him live there if you want to.  Even if that means a different property. 

Errr they covered that, can’t afford to get they want on their own and presume something in their price range would be a side step so not worth moving.....

Yeah but they also can't agree on how to share fairly.  We don't know exactly what she can afford on her own, but even staying put seems a better idea rather than getting financially tied together when they aren't on the same page at all.

Angela_D_3

please please take advice from someone who learnt this the hard way.  No way does he keep his house and you sell yours.  If you split history will be rewritten I promise you and you’ll end up with less than you have now and he will have half the new house AND his current property.  I assume you aren’t married and therefore in anyway protected ?  I’d just say I’m happy as we are tbh 

hannah021

So is he living in ur place rent free and only paying utility bills? Why arent you living in his place paying half utilities and cashing on ur property and saving rent? He sounds like the smart guy in the relationship. Are you getting half the rent of his property since you're sharing yours with him? I would get a solicitor involved to protect my interests and work out (without emotions) whats fair and what isn't. So many relationships breaking up these days that i'm not prepared to buy joint without being married.

sheramber

What is fair is what you both agree on. Since you are asking here it would appear that you are  not in agreement 

steampowered

Personally:

- I think he should pay the £16.2k higher rate stamp duty charge. If you were buying by yourself there would be no stamp duty. You only have to pay that because he wants to keep his other property.
- I think you should pay the £4,800 cost of selling your property. Where your equity comes from is your problem.

If you are paying 50% of the stamp duty, I think it is fair that he pays 50% of the cost of selling your property.

Otherwise you could suggest he sells his buy to let which would avoid the higher rate SDLT charge. How many years rent would he need to receive to make £16.2k profit on his BTL ?

Emma2804

Okay, going to try & explain some points raised by a few posters above. His property is 150miles away & his friend currently rents the property (currently makes no profit as his friend doesn’t earn much so he just breaks even on the mortgage costs  The thought being it helps hus friend & it helps him as he trusts the place will be looked after & there’s no need for a management company or fees-his friend is moving out next year so whoever moves in he will charge a more favourable rent to to more than cover just the mortgage). We both want to live in the area of my property. My place is a leasehold property (his isn’t) which very soon with the shortening lease will start to depreciate the house value, or incur a big bill extending the lease. Hence why he keeps his & I sell mine I do not want the hassle of keeping it on & renting it out. Nor could we buy together somewhere if we both kept our properties. For now we’re keeping his rental property as a future nest egg for us both (he will use the income it makes to even up the shares in our property over time). It isn’t worth him selling his as he’s only owned it a short amount of time & the area it is in hasn’t risen as much as my area so there is little equity & tbh most would be lost to fees in selling. 

Having been burnt before, treating everything equally (but actually having my ex not pay his half & I end up covering everything) & then having to start over from scratch & build myself up again, despite my current partner being a million miles away from the type my ex was we both feel it is fair & best to recognise our investments.  We will share bills going forward equally. It is just our property shares that will be identified. This is also to cover the fact that should he die first I won’t end up paying inheritance tax on a share of a property that is actually mine. It isn’t just recognising the shares for a potential future break up. 

newdriver101

Fairness is relative and depends on the couple, previous and current arrangements and each party’s salary etc.
That said, there are 4 ways I can see to do this:
1. He pays Stamp duty you pay all costs associated with selling “your” property
2. He pays the “extra” 3% stamp duty, you pay selling costs and you both split the “normal” stamp duty and legal fees
3. Split everything 50:50
4. Split everything in the ratio of your deposit for the new property

squirrelchops2

I agree with newdriver101 above regarding the options available to you.
My partner and I have been together 13 years and still have some separation in our finances due to various reasons hence I do not agree with the views that it isn't a committed a relationship if you don't share everything 50/50. 
Similarly to you OP my partner had a house he bought and is now a buy to let before he met me, that, in my opinion is his house, he deals with all the finances related to it and I wouldn't expect money from it. Conversely I am in the process of selling land for building, land I inherited, should i split that 50/50 with him - there is no chance on this Earth I would do that and nor would he expect me to. Don't get me wrong I may well end up mostly funding a new home for us but that is my choice and will be my house for us both to live in mortgage free. 
That said I think it is easier to maintain separate finances when you both have something and are thus equal to some degree, it becomes more difficult when 1 partner doesn't and hence if there was a separation could easily lose out. 

avawat20

Whatever way, make sure you get a deed of trust drawn up. Speak to the solicitor about how it can work - can you agree to take what you put in should you split and sell i.e. all of your house equity. I've not done one but buying house with partner and will be creating one! But we will have different levels of equity from our properties we sell.

I would either split everything (put you on the flat too) or work out a way of him paying stamp duty from his property and you keeping your equity if things go sour.

Hopefully that never happens but best to protect yourself - you never know what can happen!

Aranyani

If the BTL is a nest egg for both of you then what is the plan for getting the ownership changed to reflect that?