We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Cause
Options
Comments
-
This forum likes to get tied up in the meaning of fair. As in of you agree that you pay nothing but get an equal share in the house because of other work you do, that's fair because it's what you agreed. However assuming you are looking for the most equitable way, only considering financial contributions, there's a few ways you can do it:1) you borrow the extra 20k deposit from partner, and both own 50 /50 from the outset. You then pay partner back the 20k separate to mortgage contributions, possibly with a pre agreed interest rate.Pro: keeps the house deeds simpleCon: little protection for partner if you don't pay2) you take on more of the mortgage and own 50/50.
So your 30k deposit is 4.5% of the property value, so you borrow the remaining 45.5% of the property value to total 50%. So 45.5%/85% = 53.5% of the mortgage payments including interest. Partner pays 46.5% of the monthly mortgage.
If you sell / break up before the mortgage is paid off, then you each get half the sale price but you pay off more of the mortgage (53.5%) from your share.
Pro: you get the extra equity at today's price since that's when you made the commitment but you do pay something for not having the money upfront, in the form of paying slightly more of the interest.
Con: if you end up in negative equity, you have to top up with your own funds to pay back the partner.
3) if / when you have the money, buy more of the property at the market value at the time.
Pro: this makes more sense if you're not sure whether you'll be and to buy more and are not committing to buy more yet.
Con: hassle of getting another valuation. You both have to accept you may not buy the higher share.
Overall 1 and 2 are similar, both apply if you'd definitely want to equalise the shares. You're effectively borrowing the extra money, so lose out on interest. If you're not sure, then you stay with the unequal shares now, and if you can buy more in the future, you do at the price then, but you lose out on the value increase (or decrease). Personally I'd pick (2)0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards