Totally confused about how this would work!

Laggy · 4 January 2018 at 7:51PM

OK so,
I have currently got a job paying 28000, no out goings other than student loan at 50 a month and in theory can get 130000 mortgage. Due to an inheritance I have got 60000 deposit. My parents are gifting me 20000, this doesn't need to be payed back (officially) or mentioned or anything, meaning I have essentially got a 80000 deposit. Now this means I can just about scrape together enough to get something freehold, but only 1 bedroom in a dodgy area.:mad:

The issue Im having is that my boyfriend, due to another inheritance wants to become part of the purchase and offered 70000 to get a 2 bed nicer house. Now this is fine but I really don't trust his family and the unexpected can always happen. How can I legally make sure that the property is mine still with him owning a fixed share? i.e. in event of break up/ death I am not forced to sell early/ move out. I dont mind paying them back either the current value of property or initial investment, I just want to protect my self and make sure that its business air tight and not lovey dovey loose.

Baiscally how best to make this work for us both to make a good investment.
Me, including morgage 210 000
Him, 70000
Thanks and sorry is its actually simple, :rotfl:

YHM · 4 January 2018 at 8:11PM

If you buy as tenants in common, you can each protect your separate investments.

Laggy · 4 January 2018 at 8:44PM

Thanks, I had never heard of that! Just to clarify would that mean I could send my bit to my parents in the event of Death and him to anyone of his choice?

dimbo61 · 4 January 2018 at 9:02PM

Who you leave your money too is up to you
See a solicitor and make your WILL.
You can buy a property so you own 70% and your partner owns 30% or what ever percentage you agree on.
However if you have concerns now please read some of the many posts about people having problems splitting up and selling jointly owned property !
Is you partner not working ?
Consider an offset mortgage and if you both pay the same amount of deposit but keep separate offset accounts ( Yorkshire BS )
PS with YBS your parents can also have an offset account saving you interest on your mortgage BUT in there names ( you cannot touch it !)

dimbo61 · 4 January 2018 at 9:08PM

PPS your parents could use this account to gift you £3,00 a year and £5,000 when you get married, have kids etc

ValiantSon · 4 January 2018 at 10:11PM

Laggy wrote: »

OK so,
I have currently got a job paying 28000, no out goings other than student loan at 50 a month and in theory can get 130000 mortgage.

Are you absolutely sure that you have "no outgoings" other than your student loan? Are you not paying any rent/gas/electricity/water/travel expenses/mobile contracts/food bils??

I assume your £28,000 salary is the gross figure.

Laggy wrote: »

Due to an inheritance I have got 60000 deposit. My parents are gifting me 20000, this doesn't need to be payed back (officially) or mentioned or anything, meaning I have essentially got a 80000 deposit.

Yes, it does need to be declared. You have to tell your mortgage provider where your deposit is coming from and provide proof of that. Your solicitor will ask to see proof of deposit (because they will also be acting for your mortgage provider). If you don't declare a gift then it can cause significant problems and could be considered fraudulent, resulting in your mortgage offer being withdrawn.

Laggy wrote: »

Now this means I can just about scrape together enough to get something freehold, but only 1 bedroom in a dodgy area.:mad:

Depressing, I know. If you looked at a slightly longer commute could you afford a better area?

Laggy wrote: »

The issue Im having is that my boyfriend, due to another inheritance wants to become part of the purchase and offered 70000 to get a 2 bed nicer house. Now this is fine but I really don't trust his family and the unexpected can always happen. How can I legally make sure that the property is mine still with him owning a fixed share? i.e. in event of break up/ death

As has been suggested, you can own as tennants in common, which protects your half (or whatever percentage), but this doesn't mean that it will be easy to realise that capital in the event of a break up.

If you are questioning the long term stability of your relationship then I would suggest that buying a property together is not a good idea. Until you are really sure that this is the person you want to spend the rest of your life with, and you trust him without reservation, you should not buy together. Your suggestion that you would want your parents to inherit your share of the house should you die suggests that you are not sure about this relationship. Would you not want your boyfriend to have security in the home after your death?

Give some serious thought to this situation. At the moment, I'd suggest buying on your own. You can always buy a property together later if you decide that this is the right relationship for you.

Thrugelmir · 4 January 2018 at 10:36PM

Laggy wrote: »

, but only 1 bedroom in a dodgy area.:mad:

Then don't buy yet. Remain living at home and building your savings. Open a cash LISA for a few years. No need to make rush decisions.

goodwithsaving · 4 January 2018 at 11:28PM

Thrugelmir wrote: »

Then don't buy yet. Remain living at home and building your savings. Open a cash LISA for a few years. No need to make rush decisions.

and definitely don't buy with someone else just because of pressure. If your gut feeling isn't sure, don't. Sure it'd "only be a one bed", but that one bed would be yours.

dimbo61 · 4 January 2018 at 11:50PM

My gran used to say "If you want to get to know me come and live with me"
Why not rent together for 6/12 months.
See what it's like paying for Everything that comes with "Your own place" except maintenance and buildings insurance

Tom99 · 5 January 2018 at 5:39AM

[FONT=Verdana, sans-serif]Is your boyfriend going to live in this house with you?

[/FONT] [FONT=Verdana, sans-serif]If he is why is he not paying 50% of the mortgage which would make you almost equal owners given your £80k v £70k deposits.

[/FONT] [FONT=Verdana, sans-serif]If he is not going to live with you, what's in it for him? He is tying up £70k with no easy way of accessing that capital, no rental return, will no longer be a 1[/FONT][FONT=Verdana, sans-serif]st[/FONT][FONT=Verdana, sans-serif] time buyer, if he is one now, and maybe subject to the extra 3% stamp duty if he buys another house.

[/FONT] [FONT=Verdana, sans-serif]If you do buy the property jointly then your respective percentage ownership can be set out in a Deed of Trust.[/FONT]

Totally confused about how this would work!

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free