Purchasing with Girlfriend - agreement re division of ownership/costs

mither_2

getmore4less said:

is it this mortgage?
https://forums.moneysavingexpert.com/discussion/comment/77881200#Comment_77881200

if you have split the deposit 75% 25% then you need to factoring the mortgage split to determine ownership.

if you go 50:50 on the mortgage then you need to own   
(0.75*0.5)+(0.25*0.75)  == 56.25% 
(0.75*0.5)+(0.25*0.25) == 43.75%
with you each owing 1/2 any outstanding debt from those shares

Sorry, I wasn't clear on this. The mortgage payments will also be split 75%:25% i.e. we will maintain the same ownership. 
We'll also split the cost of any renovations, decorating costs 75:25 too.
This way we should be able to maintain this 75:25 split on everything. 
I've explained that in the event of negative equity we will lose money on this basis and this will factor into any calc of what we get back in a sale. 
Similarly if we sold the property at a profit we would get back our shares on a 75:25 basis. 
  

mither_2

MovingForwards said:

Ask your solicitor to draw up a declaration of trust, costs about £200 and covers everything you want it to.

Once drawn up and countersigned by my GF and I where would this be saved? 
How would we go about changing it in the future? As discussed we'll hopefully get married in the future and may switch to 50:50. 

ic

You might choose to split the mortgage 75:25, but I'm sure you'd remain equally jointly liable for it - if one were to slip away quietly in to the night, the mortgage company will hold the other responsible for keeping up the payments (and the other could reappear later and still claim ownership of the home).

You'll need to employ a solicitor to do the conveyancing anyway at many hundreds of pounds, so you may as well get them to put together the paperwork that will keep your mortgage company happy, and aligns properly with what gets recorded on the deeds.

MovingForwards

mither_2 said:

MovingForwards said:

Ask your solicitor to draw up a declaration of trust, costs about £200 and covers everything you want it to.

Once drawn up and countersigned by my GF and I where would this be saved? 
How would we go about changing it in the future? As discussed we'll hopefully get married in the future and may switch to 50:50. 

Hopefully you will have wills drawn up too, both the wills and the declaration of trust (DoC) can be stored together at the solicitors. They will provide you will a photocopy.

Changing it will be done by a solicitor again and a long marriage could overrule any DoC.

[Deleted User]

mither_2 said:

greatcrested said:

I hate these posts which come up regularly.

I'm not going to advise (others will!), other than to point out that joint purchase of property is a much bigger commitment than marriage. Which begs the question, why not get married?

Especially as mariage brings with it a whole raft to rights regarding property (and other assets) which make your problem redundant.

And if you are not yet confidant enough in the long-term future of your relationship, then don't buy a property together jointly......

Not really an option at the moment. Hopefully it will happen in a few months time if things improve following the vaccination of the vulnerable and elderly.
"Marriage brings with it a whole raft of of rights regarding property (and other assets) which make your problem redundant?" 
How so? Why would getting marriage change this? I suppose we could get some pre-nuptial arrangement but this seems even more formal than what we're doing here?  

If your marriage produces children, then a pre nup is worthless. 

I second getting proper advice on this