Property share when splitting relationship

tt5552

Hi, a basic question.

Let's say I move into my partners house, and I start paying half the mortgage.
If we split, would I be entitled to half of the amount *after* I have moved in.

Here's an example:
I move in in 1995 and the property is worth £100,000.
I then pay half the mortgage for 30 years 2025, and the property is now worth £300,00.
As a basic concept, and if it was considered 'fair' would I then be to £100,000 because from that point on, the house is worth that amount and we both put in half?

I'm not asking for myself to clarify but just seeking some basic logic.

Thanks.

tt5552

Or, would it be more 'fair' if the amount "I" paid was fully repaid back. E.g. 
I paid, in total, 360 monthly payments of £200, so I'd be given this back, which would be about £72,000.

elsien

There isn’t a one size fits all, but you need to look up beneficial interest and what it means

If it came to it in court, then you would need to prove that you paid towards the mortgage rather than just paying a sum towards bills, for example and it would also depends on any other money that you’d put in for example improvements – new kitchen new bathroom that sort of thing.

It can get quite messy unless you’re very clear at the start about how it’s going to work and  can evidence it.
 I recently came across a case where a couple had been living together for 30 years with the property in her sole name. He paid towards the mortgage and put all of  his savings towards doing up the house - Kitchen – conservatory et cetera, but it was paid in cash to the partner’s children for them to organise. No receipts, obviously.
 So when his partner died unexpectedly without having made a will, he had no way of proving that he paid anything and they basically just threw him out with very little notice.
He chose not to fight it, partly because of the lack of evidence but also because his long term partner had just died and he was in no fit state emotionally or financially to be taking on an expensive lawsuit.

gwynlas

There have been a number of posts here about couples splitting after a number of years of sharing finances.Even if there is no intention to formally commit a legal route needs to be set up regarding housing and inheritance. The person named on the tenancy or mortgage takes precedence over everything else there is no legal concept of common law so the second party leaves with nothing.

SilverSix

Get your name on the mortgage / deed.

You would not need a transfer of equity, I don't think, as you are starting with none.

A declaration of trust from a solicitor can cover this and should cost less than £1,000. This will solely cover ownership and sale of the property and who is responsible for servicing the mortgage.

You will have a hard battle I would imagine otherwise.

I am in the process of purchasing with my O/H, we are unmarried and I have significantly more capital/equity than she does. We have a declaration of trust agreement.