How do I work out living costs with partner?

tink_1983

finchy_2020 said:

We have a tenants in common document which shows that I own 60% and my partner owns 40% but he’s not put any physical money into the house... I have?

So when you sell any equity will be split 60/40. 
If this was me I'd be getting a declaration of trust drawn up to protect yourself.
And as for the work to be done, if you choose to spend 25k and he adds labour thats your choice.

Grumpy_chap

finchy_2020 said:

We have a tenants in common document which shows that I own 60% and my partner owns 40% 

If you knew that, why did you ask?

finchy_2020 said:

how do we find a common ground to split the house so it’s fair on both parties? If I’ve put down all of the deposit do I own 100% of the house? 

It sounds like someone is already having second thoughts...

With regard to:

finchy_2020 said:

Thanks for all the comments - most of them are pretty stupid in regards to what I’ve declared... I’ve not declared as many possible expenses to keep my overall profit up, most people do it - banks know they do it, HMRC know they do it.

It was originally your partner who was sole trader and declared excess earnings above true earnings.
Most people most definitely do not do it - it is fraud and has every chance of catching up with the pair of you.

Finally:

finchy_2020 said:

Mortgage payments with current rates are about £550 each per month so why are there comments asking how we could possibly afford this? It’s quite simple and wasn’t the question. 

It's not simple as you did not say any range of what either of you earn.  Particularly when your:

finchy_2020 said:

partner won’t be able to contribute much because of his job and Covid he’s not making as much but can afford to pay the mortgage! 

For the borrowing you need to have the £290k mortgage, you need about £90k combined income.  You already stated that you over-declared £20k to get the mortgage, so your real combined income is around £70k, but that has dropped further because of COVID.  Comments about affordability seem real enough to me.

Angela_D_3

finchy_2020 said:

Thanks for all the comments - most of them are pretty stupid in regards to what I’ve declared... I’ve not declared as many possible expenses to keep my overall profit up, most people do it - banks know they do it, HMRC know they do it... it’s extra tax in our taxpayers pocket. Mortgage payments with current rates are about £550 each per month so why are there comments asking how we could possibly afford this? It’s quite simple and wasn’t the question. 

We have a tenants in common document which shows that I own 60% and my partner owns 40% but he’s not put any physical money into the house... I have?

So his 40% will come from  him paying the mortgage every month for the next 25 years, is that not the plan ? 

Grumpy_chap

fleur8 said:

I guess the lesson here is not to buy with someone who you don’t see as a life partner? Otherwise surely this sort of thing wouldn’t matter. 

Unless it is a clear business arrangement, in which case everyone would be entering "eyes wide open" and the exit plan built in from the outset.

Angela_D_3 said:

So his 40% will come from  him paying the mortgage every month for the next 25 years, is that not the plan ? 

Clearly, there has been a change of plans and the OP seeks early departure, but now realises that 40% of the £55k deposit they put in has gone.  On top of cost to acquire and cost to sell.  Hence why the OP want to own all the house as there is no other payments in this far and somehow the OP thinks they can take over and maintain the full mortgage payments.

Falafels

I'm not understanding how the OP can, in all seriousness, wonder if they own 100% of the property because of putting down the entire deposit, whilst having a signed agreement that they actually own 60%. Perhaps a prerequisite to having a fair agreement would be a bit of joined-up thinking???

[Deleted User]

Falafels said:

I'm not understanding how the OP can, in all seriousness, wonder if they own 100% of the property because of putting down the entire deposit, whilst having a signed agreement that they actually own 60%. Perhaps a prerequisite to having a fair agreement would be a bit of joined-up thinking???

Me neither. There’s some interesting mathematics going on. 

SDLT_Geek

Falafels said:

I'm not understanding how the OP can, in all seriousness, wonder if they own 100% of the property because of putting down the entire deposit, whilst having a signed agreement that they actually own 60%. Perhaps a prerequisite to having a fair agreement would be a bit of joined-up thinking???

Here is a theory.  OP might be considering a swift sale of the property.  Assume for now it is sold for the same as the price it was bought for.  After expenses of purchase and sale and repayment of the joint mortgage, the amount left will be less than OP’s contribution.

So OP would want 100% of that remaining equity, not 60%.

A declaration of trust saying simply 60/40  might seem unattractive to OP now.  OP would make a large loss and OP’s partner would get something for nothing.

A more sophisticated declaration of trust might have provided for the sale proceeds less costs (but without deducting the mortgage debt) to first be divided 60/40.  Each owner would have 50% of the debt deducted from their sum.  That would leave OP with more money.  Was it Tom99 who used to explain it well?  Where did Tom go?
Edit: I see that @Tom99 was last active on MSE on 30 March 2020. I do hope he is alright.

AdrianC

finchy_2020 said: Mortgage payments with current rates are about £550 each per month

No, mortgage payments are £1,100 per month, from the two of you jointly. The lender do not care how you split that between you.

finchy_2020 said:

We have a tenants in common document which shows that I own 60% and my partner owns 40% but he’s not put any physical money into the house... I have?

Yes, he has.

Between you, you have put £345k "physical money" into it.
£55k (16%) of that is from your assets.
£290k (84%) of that is money the two of you have borrowed, jointly and severally. You are each on the hook for repaying the entire amount of that.

Just because it's money you've borrowed doesn't somehow make it less real. If anything, it makes it more real, because your £1,100 repayments multiplied by 360 months means the pair of you are contractually obliged to pay the lender nearly £400,000 to repay the borrowed £290,000, assuming the mortgage runs to term at the same interest rate. And it won't stay at the same interest rate for the entire term - the rate is going to climb.

getmore4less

finchy_2020 said:

We have a tenants in common document which shows that I own 60% and my partner owns 40% but he’s not put any physical money into the house... I have?

How was this calculated?

This is quite important along with actual wording. 

Eg. How does it document dealing with the mortgage when the time come to distribute funds.

We see a lot of truds deeds by solicitors that are very poor. 

MFWannabe

finchy_2020 said:

Thanks for all the comments - most of them are pretty stupid in regards to what I’ve declared... I’ve not declared as many possible expenses to keep my overall profit up, most people do it - banks know they do it, HMRC know they do it... it’s extra tax in our taxpayers pocket. Mortgage payments with current rates are about £550 each per month so why are there comments asking how we could possibly afford this? It’s quite simple and wasn’t the question. 

We have a tenants in common document which shows that I own 60% and my partner owns 40% but he’s not put any physical money into the house... I have?

So you already know how much you own? 

Seriously should have had it divided differently at the time of purchase if you wanted to protect your deposit 
I assume you’re having massive second thoughts about your purchase and partner as it appears from your posts you’re worrying about what you’ll get out of it should you split