Declaration of Trust Help

no1toldme

I have sold my property and I am just in the process of moving in with my partner, our intention is to pay the money I have made from the sale of my property off his mortgage. The mortgage will remain in his name until his fixed deal runs out. I am happy to pay my money off his mortgage and trust him completely but my only worry is if something happened to him I would be left homeless with nothing as everything is still in his name, he has suggested a declaration of trust should deal with this until we are married. All costs associated with living together (mortgage, maintenance, improvements etc) will be split 50/50.

I have spent sometime looking at this and it makes my head spin but i think i have come up with the split as follows that i think seems fair, can anyone advise if this looks right or offer any advice?  would like to try and keep it as simple as possible.

House value: £300,000
His equity: £204,000 (80% of total equity)
My equity: £52,000 (20% of total equity)
Total equity £256,000 (85% of the house value)
Mortgage £39,500 (15% of the house value)

So on the basis of the above i would get 20% of 85% of the house value and he would get 80% of the 85% and then 50% on anything above this. This allows for any increase/decrease in value and a share of any equity as a result of mortgage payments. 

The alternative way i looked at it was below:

House value: £300,000
His equity: £204,000 (80% of total equity)
My equity: £52,000 (20% of total equity)
Total equity £256,000 - split 80/20 and then 50/50 for any equity over this amount (obviously less sale costs and mortgage)

I'm not sure if this is too simplistic and also doesn't deal with any decrease in values. 

Can anyone offer any advice?

Brie

Alternative chain of thought.....how much is his interest currently?  If it's less than what you could get in a high interest account why not put your money there for the time being and then you'll have more to offer when your name can go on the mortgage.  

Then maybe just a simple "tenancy" agreement that says what you're going to pay towards what.  I know this wouldn't actually be a tenancy but I don't have a better name for it.  

Olinda99

you should also consider putting yourself on the deeds at the land registry.

one way would be tenants in common where the defaults would be a 50/50 split although this could be overwritten by a declaration of trust along the lines you have written

the other way would be a joint tenancy where you both each own all the house so if either of you dies the house automatically belongs to the other. if you are planning on getting married then this is the way to go to be honest

no1toldme

We have already debated this and done some crude calculations on what would be better from a financial perspective. Our intention is to continue the same mortgage payments so effectively overpaying to make the most of the low interest rate on the mortgage and get as much paid off as possible now. Also from some quick calcs i would be paying 40% tax on any interest earned so seems better to pay more off the mortgage but as i say they were very basic calculations so may be incorrect.

no1toldme

Olinda99 said:

you should also consider putting yourself on the deeds at the land registry.

one way would be tenants in common where the defaults would be a 50/50 split although this could be overwritten by a declaration of trust along the lines you have written

the other way would be a joint tenancy where you both each own all the house so if either of you dies the house automatically belongs to the other. if you are planning on getting married then this is the way to go to be honest

So if we just change the title deeds to a joint tenancy there is no need for a declaration of trust? My only worry is literally is something happened to him i'll have nothing as everything is still in his name and i don't know if i'm just over worrying about it