Advice re Tenants in Common set up

Rocket_Dog_2

Being dumb here no doubt but my partner and I are buying a property which we are planning to hold as "tenants in common" . The mortgage is £175,000, the purchase price is £225,000. The £50k deposit is mine. What would we show as the "unequal share" percentage on the transfer deed ? Would the split be 60/40 in my favour to account for the £50k deposit that I am funding ?

PBA

What's your solicitor said about this? I was in a similar situation, and our solicitor actually said we should be tenants in common 50/50 but with a separate declaration of trust drawn up saying I'd get back deposit + interest, then the remaining equity would be split 50/50. He actually suggested using a different solicitor to do the extra work, so his advice must have been based on something other than getting some extra money out of us.

subjecttocontract

If you want absolute accuracy then the split should be nearer 38.89/61.11%

A 40/60% split means you are 'giving up' £2500 of your deposit to your partner.

moneysavinmonkey

Assuming you are paying the mortgage equally then....


you are contribution 50k + responsible for 87.5k of mortgage (total £137.5)

your partner is responsible for 87.5k of mortgage only.

£137.5 is 61.1111111111111% of £225

so a 60/40 split would be about right!

Rocket_Dog_2

Thanks for the responses everybody ! :rotfl:

PBA - The solicitor has advised that we would only need to do the Declaration of Trust if we cannot easily provide a split to go on the transfer deed but I think we can.

Richard_Webster

You can't just put in lump sums for the mortgage. If you split up after say 3 months and you've each made half of three mortgage payments say £2K each then OP gets £30K and partner £20K (assuming house sells for what it was bought for.)

I don't think so, in this example, OP has put in £32K and partner £2K!

BenMMellor

Hopefuly someone can give me some idea of a 'tenants in common' situation my mother has ended up in.

She and her partner purchased a house for £325,000 in June 2006. The arrangement was as follows :

Purchase price of house : £325,000
Mum's payment - cash £300,000
Partners payment (via mortgage) - £27,999
The mortgagse that my mums now ex-partner took out had to be in their joint names, though he was making the payments on his own as he had no cash to put into the purchase.

I've already started looking into the 'notification of severance of tenants in common agreement procedure and am discussing this with my mums solicitor at a meeting next week, but my mum's major concern is this guy getting away with a significant amount of my mum's cash. At the moment I'd like some ideas of what possible outcomes can happen now.

According to the detail of the deeds, mum has 92% and her partner has 8% of the property. They have since split in December '07 and my mum wants to take the house back completely in her name but feels that as her partner hadn't even 'paid' for his 8% of the house she can't understand how he can demand a full 8% of the house's value when she will be paying the mortgage off once she has transferred it into her sole name.

Is she looking at having to pay the remainer of the mortgage of approximately £27,000 plus the value of 8% of the actual property - estd as £25,000 or is he only entitled to 4% of the value or essentially a smaller %tage based on the amount of the mortgage he's paid until he left ?