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Tennant's in common DoT advice

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Hello, I'm looking for advice please and to see if what I'm thinking below is correct:

My partner has a mortgage on his property, the mortgage is ending so he is remortgaging and adding me to the mortgage as a tennants in common with a DoT protecting our shares.

Value of property £550,000
Mortgage amount £292,000
His share 72%
My share 28%
We want to pay the monthly repayments 50/50. 

If something were to happen, is my thinking below right? The property value £550,000 minus the remaining amount of mortgage loan then he gets 72% and I get 28% of that, then say the price of the house had increased during the start to end of this period we'd split that 50/50 on top of our initial 28/72 percentages as were splitting the repayments 50/50? Or do we split the repayments 28/72 and then just split the equity that way when selling?

Comments

  • gwynlas
    gwynlas Posts: 2,260 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It is up to you whether you proceed on the 72% 28% route or simply consider his equity as being a deposit ie £258K payable on sale then the remainder split 50.50 in line with your mortgage payments
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