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Unequal deposits buying a house.

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AGolding94
AGolding94 Posts: 2 Newbie
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in House buying, renting & selling
Hello!

In advance thank you to anyone for their advice. Myself and my partner (Not Married) are in the process of buying the house.

The house is valued at £295,000 & the deposit is going to be £117,000 therefore leaving us with a £118,000 mortgage. I am putting all of the deposit down as it was inheritance however we believe it will be a good idea for my partner to pay the mortgage payments each month of approx £400 and therefore paying into the house.

To be on the safe side we are going to have a solicitor write something up which we can both refer to as my partner doesn't want to take any of my inheritance but also doesn't want to be left with nothing if something happens to the relationship.

How do people suggest we do this & how we should word the document based on the information above?

Thank you again for any advice.

Comments

  • Socajam
    Socajam Posts: 1,238 Forumite
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    Can you and your partner obtain a mortgage without putting such a large sum down?
    Does your partner have any money at all to?
    I have been reading this board for a long time and would be extremely skeptical in putting down such a large sum of money whether we were married or not.
    If the partner cannot meet certain obligations, I would most certainly rethink. It's ok being in love now, but let that love turn stinky, and you see another side to your partner - been there, done it and never to return.
    People change, things happen and then you are in the situation where your partner seems to forget where the deposit for the house originated from, leaving a mess to be sorted out.
    If you still want to continue, I would see if something airtight could you drawn up so that in the event of any breakup, your deposit can be return to you first before any other money is paid out from the house.
  • Socajam
    Socajam Posts: 1,238 Forumite
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    Someone is asking what to do on this:

    Separation issues 23rd Oct 19 at 5:07 PM


    I would do a search on it and read the comments.
  • MovingForwards
    MovingForwards Posts: 16,921 Forumite
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    You want a declaration of trust drawn up specifying if you split or otherwise separate the property is to be sold and the estate agent / legal fees are paid then the first £117k is to be paid to you, the rest to be split 50/50 or however your payments work out.*

    *It seems like you are looking to buy 50/50 each but your 50% is by way of the deposit and your partner pays all the mortgage.
    Mortgage started 2020, aiming to clear it in 2026.
  • MovingForwards
    MovingForwards Posts: 16,921 Forumite
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    * Don't forget you would both be liable to pay the mortgage, so if your partner doesn't pay the £400pm you will have to.

    As mortgages, same as council tax, are joint and several liability.
    Mortgage started 2020, aiming to clear it in 2026.
  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
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    Socajam wrote: »
    Someone is asking what to do on this:

    Separation issues 23rd Oct 19 at 5:07 PM


    I would do a search on it and read the comments.


    https://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=24
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    edited 25 October 2019 at 7:51AM
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    AGolding94 wrote: »
    Hello!

    In advance thank you to anyone for their advice. Myself and my partner (Not Married) are in the process of buying the house.

    The house is valued at £295,000 & the deposit is going to be £117,000 therefore leaving us with a £118,000 mortgage. I am putting all of the deposit down as it was inheritance however we believe it will be a good idea for my partner to pay the mortgage payments each month of approx £400 and therefore paying into the house.

    To be on the safe side we are going to have a solicitor write something up which we can both refer to as my partner doesn't want to take any of my inheritance but also doesn't want to be left with nothing if something happens to the relationship.

    How do people suggest we do this & how we should word the document based on the information above?

    Thank you again for any advice.
    I assume you mean the deposit you are paying is £177,000 not £117,000?

    You would go for tenants in common then have a deed of trust drawn up and don't just agree a simple split 60/40, 30/70 or whatever, you need a two part formula.
    You are paying the 60% deposit and your partner is paying all the mortgage so your deed of trust might say something like this:

    [FONT=Verdana, sans-serif]On the sale of the property and after paying the sale costs and redeeming the mortgage the proceeds of sale shall be split as follows:[/FONT]
    [FONT=Verdana, sans-serif]Party A – 60% of the gross sale price less costs of sale[/FONT]
    [FONT=Verdana, sans-serif]The remainder – 100% to Party B[/FONT]

    Whatever formula you go for it needs to work if you sold the house tomorrow, in 5yrs or in 30yrs.
    Eventually when the mortgage is paid off you will own 60% and your partner 40% but that will not happen until your partner has paid off all the mortgage.
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