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  • FIRST POST
    • Laggy
    • By Laggy 4th Jan 18, 6:51 PM
    • 2Posts
    • 0Thanks
    Laggy
    Totally confused about how this would work!
    • #1
    • 4th Jan 18, 6:51 PM
    Totally confused about how this would work! 4th Jan 18 at 6:51 PM
    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.

    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,
Page 1
    • YHM
    • By YHM 4th Jan 18, 7:11 PM
    • 537 Posts
    • 198 Thanks
    YHM
    • #2
    • 4th Jan 18, 7:11 PM
    • #2
    • 4th Jan 18, 7:11 PM
    If you buy as tenants in common, you can each protect your separate investments.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • Laggy
    • By Laggy 4th Jan 18, 7:44 PM
    • 2 Posts
    • 0 Thanks
    Laggy
    • #3
    • 4th Jan 18, 7:44 PM
    • #3
    • 4th Jan 18, 7:44 PM
    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
    • By dimbo61 4th Jan 18, 8:02 PM
    • 9,916 Posts
    • 5,338 Thanks
    dimbo61
    • #4
    • 4th Jan 18, 8:02 PM
    • #4
    • 4th Jan 18, 8:02 PM
    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 !)
    Last edited by dimbo61; 04-01-2018 at 8:05 PM.
    • dimbo61
    • By dimbo61 4th Jan 18, 8:08 PM
    • 9,916 Posts
    • 5,338 Thanks
    dimbo61
    • #5
    • 4th Jan 18, 8:08 PM
    • #5
    • 4th Jan 18, 8:08 PM
    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
    • By ValiantSon 4th Jan 18, 9:11 PM
    • 2,044 Posts
    • 1,894 Thanks
    ValiantSon
    • #6
    • 4th Jan 18, 9:11 PM
    • #6
    • 4th Jan 18, 9:11 PM
    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.
    Originally posted by Laggy
    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.

    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.
    Originally posted by Laggy
    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.

    Now this means I can just about scrape together enough to get something freehold, but only 1 bedroom in a dodgy area.
    Originally posted by Laggy
    Depressing, I know. If you looked at a slightly longer commute could you afford a better area?

    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
    Originally posted by Laggy
    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.
    Last edited by ValiantSon; 04-01-2018 at 9:13 PM.
    • Thrugelmir
    • By Thrugelmir 4th Jan 18, 9:36 PM
    • 58,972 Posts
    • 52,292 Thanks
    Thrugelmir
    • #7
    • 4th Jan 18, 9:36 PM
    • #7
    • 4th Jan 18, 9:36 PM
    , but only 1 bedroom in a dodgy area.
    Originally posted by Laggy
    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.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • goodwithsaving
    • By goodwithsaving 4th Jan 18, 10:28 PM
    • 825 Posts
    • 1,265 Thanks
    goodwithsaving
    • #8
    • 4th Jan 18, 10:28 PM
    • #8
    • 4th Jan 18, 10:28 PM
    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.
    Originally posted by Thrugelmir
    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.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • dimbo61
    • By dimbo61 4th Jan 18, 10:50 PM
    • 9,916 Posts
    • 5,338 Thanks
    dimbo61
    • #9
    • 4th Jan 18, 10:50 PM
    • #9
    • 4th Jan 18, 10:50 PM
    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
    • By Tom99 5th Jan 18, 4:39 AM
    • 2,261 Posts
    • 1,531 Thanks
    Tom99
    Is your boyfriend going to live in this house with you?

    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.

    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 1st time buyer, if he is one now, and maybe subject to the extra 3% stamp duty if he buys another house.

    If you do buy the property jointly then your respective percentage ownership can be set out in a Deed of Trust.
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