Buying into partners house

Bathchick

Hi all,

Just looking for advice on how people would deal with this to make sure everything is fair.  My partner and I are looking to move in with each other, into my partners current home. We both have properties, and I have a child from a previous relationship.

My info

House value £200k
Outstanding mortgage £60k

His
House value £350k
Outstanding mortgage £70k

We would want to build an extension/improvements that we estimate at around £100k.

We both work with a joint income of £55k although I do earn around £8k more..

MovingForwards

You put in £175k, then you both own 50% each.

£50k each for the extension / improvements.

Alternatively, sell both properties and buy a new one 50/50 each.

Bathchick

MovingForwards said:

You put in £175k, then you both own 50% each.

£50k each for the extension / improvements.

Alternatively, sell both properties and buy a new one 50/50 each.

Thanks for this, are you suggesting that I don't pay anything towards the mortgage when I move in? He's still got £70k left so if I did I'd actually end up with more % of the house if that makes sense?

I have suggested selling both houses as an option but he's put a lot of effort into renovations already so is keen to stay if we can make it work.

hazyjo

You don't mention savings. How will the £100k work be funded? From savings or mortgage increase? Any mortgage on the house will be split equally. You'll each be liable for the whole amount not part.

Bathchick

hazyjo said:

You don't mention savings. How will the £100k work be funded? From savings or mortgage increase? Any mortgage on the house will be split equally. You'll each be liable for the whole amount not part.

Probably from a remortgage but then my partner says he'll have money to use (from my buy-in) and it seems silly to borrow when he's got it there but that's not fair on him

Thrugelmir

You use the £140k equity from selling your property to buy in into your partners, i.e. a 40% share. Settle your partners existing mortgage in the process. You can then proceed forward from a base point. 

Emmia

Given you're not married (I'm presuming from the use of partner rather than husband/wife) whatever you do I'd get a proper agreement drawn up (using a solicitor) setting out what happens to money if you split up.