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    • richweeks
    • By richweeks 6th Oct 17, 11:35 AM
    • 2Posts
    • 0Thanks
    New house with partner - tenents common question?!
    • #1
    • 6th Oct 17, 11:35 AM
    New house with partner - tenents common question?! 6th Oct 17 at 11:35 AM
    Hi There,

    I recently bought a house - I personally paid all of the money relating to the purchase of the house (deposit, stamp duty, taxes, fees, solicitors fees etc) totaling around 60,000.

    I have moved in to this house with my partner. We are not married or engaged - and have been going out for a couple of years. We have set up a joint account together - and are paying 1000 in each from our personal account to cover the following:

    - Mortgage repayments,
    - Bills repayments (water, energy, gas, tv, Internet),
    - Shopping payments

    Our plan is for me to look be on the mortgage for now alone - and then in a couple of years when we re mortgage - for my partner to join me on the mortgage and pay off the same 60,000 i put up initially.

    Our relationship is strong but I realize it's sensible plan for the worst - so I was wondering if someone can tell me legality of my situation if we were to split up? I have read a little about something called Tenants in common - which I think would give my partner some ownership of the house?

    I'd like to know more about this - what is it/
    What are the conditions where this apply?
    How much share in the house would they be entitled to (I presume it wouldn't be 50:50 given I have put in much more money)?

    I don't feel comfortable signing a formal document with my partner - and am actually fine with them having a share of the house without their name being on the mortgage - as long as it is proportional to the amount they have put in to the property (although if we split up - I presume I would be able to deduct a reasonable amount of rent from theyre payments....)

    Many thanks for helping me clarify before I proceed!
Page 1
    • getmore4less
    • By getmore4less 6th Oct 17, 11:45 AM
    • 32,192 Posts
    • 19,352 Thanks
    • #2
    • 6th Oct 17, 11:45 AM
    • #2
    • 6th Oct 17, 11:45 AM
    separate the mortgage and house costs from the rest of the living costs

    unless you agree something else(*see below) your initial equity(beneficial interest) split will be
    you 60K + 1/2 the mortgage
    OH 1/2 the mortgage

    when you sell/split you get that share back and then pay off 1/2 the outstanding mortgage each from that share.

    * You imply there is an agreement that the OH can buy in for the same 60k even if the place has gone up that is the equivalent to the get your deposit back and split the rest 50:50.

    This is the same as you lending 30k(interest free) to the OH so they own 50% of the property.

    When they put in their 60k it is the same as them paying back your 30k and you both paying 30k each off the mortgage.

    if they don't have 60k but 30k they could just repay their debt to you and you don't pay anything off the mortgage.
    • richweeks
    • By richweeks 6th Oct 17, 12:12 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 6th Oct 17, 12:12 PM
    • #3
    • 6th Oct 17, 12:12 PM
    Thanks getmore4less - I'm a little confused about how much share in the house my partner is entitled to if they pay the mortgage with me?

    Lets say I alone have paid:
    Stamp duty (15,000), legal fees (2000), deposit (43,000)
    totaling 60,000

    Then together we have both paid 20,000 off the mortgage (10,000 each)

    Am a right in thinking - if we split - my partner will be entitled to no more than 10,000? Do I have to pay this to them if we split?

    Apologies - a bit confused!!!

    Thanks for your point on our plan to pay in 60k - hadnt considered that
    • getmore4less
    • By getmore4less 6th Oct 17, 2:46 PM
    • 32,192 Posts
    • 19,352 Thanks
    • #4
    • 6th Oct 17, 2:46 PM
    • #4
    • 6th Oct 17, 2:46 PM
    Servicing debt is the same a buying a share of the property

    Say 60k costs/deposit 240k mortgage
    House price 283k

    They have a beneficial interest. In 120/300=0.4=40%.

    If you pay 10k each off the mortgage

    They get 40% of value less 110k left of their share.

    Which is less than 10k upto a house value of 300k more if it goes up over that..
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