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    • CarbonImage
    • By CarbonImage 5th Apr 18, 1:30 PM
    • 17Posts
    • 9Thanks
    CarbonImage
    Deed of Trust Question
    • #1
    • 5th Apr 18, 1:30 PM
    Deed of Trust Question 5th Apr 18 at 1:30 PM
    Hi all,

    I bought my house in July last year, and managed to get through it relatively smoothly thanks in part to information gathered on this forum, so thanks for that!

    I'll try and give as much information as I can without waffling but apologies if this drags on!

    So the situation is:

    Bought house with mortgage solely in my name, using gift from parents as part of the deposit. Listed GF as 'occupier' on solicitors' questionnaire, but not listed anywhere in other docs as far as I can tell (will check mortgage paperwork later when I get home).
    She pays a fixed amount towards mortgage and running costs every month, however has verbally agreed to forfeit all financial interest in the property should we separate (what she pays now is less than she used to pay in rent so she doesn't care about 'lost' money).

    The solicitor refused to write us a deed of trust at the time as it 'wasn't appropriate' which I took their advice on despite thinking it was a bit strange as others had advised me to get one and GF had agreed to sign.

    My parents are obviously concerned about their gift disappearing. None of us has reason to believe the relationship is going to end but you know how it goes, you never think it will!

    My questions are:

    Am I open to losing 50% of the equity of the house should things go south between GF and myself?

    Can I get a deed of trust retrospectively?

    Should I?

    Any assistance is greatly appreciated! Please try and be gentle, I like to think I am not naive but there are obviously gaps in my knowledge.
Page 1
    • xylophone
    • By xylophone 5th Apr 18, 2:38 PM
    • 25,176 Posts
    • 14,825 Thanks
    xylophone
    • #2
    • 5th Apr 18, 2:38 PM
    • #2
    • 5th Apr 18, 2:38 PM
    She pays a fixed amount towards mortgage
    I have seen suggestions on the board that this may give rise to a claim to an interest in the property.

    has verbally agreed to forfeit all financial interest in the property should we separate
    Call me cynical but would she formally agree if it came to the point?

    Some break ups can be very acrimonious.....
    Last edited by xylophone; 05-04-2018 at 2:41 PM. Reason: add bold
    • xylophone
    • By xylophone 5th Apr 18, 2:40 PM
    • 25,176 Posts
    • 14,825 Thanks
    xylophone
    • #3
    • 5th Apr 18, 2:40 PM
    • #3
    • 5th Apr 18, 2:40 PM
    http://www.thisismoney.co.uk/money/experts/article-4361204/I-paid-ex-s-mortgage-anything.html

    However, if the intention of you paying the monthly rent to your partner was for the money to go towards mortgage repayments or a deposit that would be shared between you, then it may be possible to argue that you have a beneficial interest in the property.
    • CarbonImage
    • By CarbonImage 5th Apr 18, 3:08 PM
    • 17 Posts
    • 9 Thanks
    CarbonImage
    • #4
    • 5th Apr 18, 3:08 PM
    • #4
    • 5th Apr 18, 3:08 PM
    I have seen suggestions on the board that this may give rise to a claim to an interest in the property.



    Call me cynical but would she formally agree if it came to the point?

    Some break ups can be very acrimonious.....
    Originally posted by xylophone
    Yes, she was ready and willing to sign a written contract outlining this, as our mortgage advisor said that she should do so if I wanted to protect the money. However the solicitor refused to write it up.
    • CarbonImage
    • By CarbonImage 9th Apr 18, 9:23 AM
    • 17 Posts
    • 9 Thanks
    CarbonImage
    • #5
    • 9th Apr 18, 9:23 AM
    • #5
    • 9th Apr 18, 9:23 AM
    Sorry to thread bump but I'm hoping someone else might be able to give insight?
    Mortgage
    Jun 2017: 164,995
    NOW: 162,488
    • Pixie5740
    • By Pixie5740 9th Apr 18, 9:59 AM
    • 11,928 Posts
    • 16,795 Thanks
    Pixie5740
    • #6
    • 9th Apr 18, 9:59 AM
    • #6
    • 9th Apr 18, 9:59 AM
    Did the solicitor give a reason for refusing to right it up such as your girlfriend should seek her own legal advice first to fully understand what it is she is agreeing to?

    Personally I think you're a bit cheeky asking your girlfriend to contribute towards your mortgage whilst at the same time asking her to sign away any beneficial interest she may have. Cake and eating it springs to mind.
    • Tom99
    • By Tom99 9th Apr 18, 10:16 AM
    • 1,946 Posts
    • 1,282 Thanks
    Tom99
    • #7
    • 9th Apr 18, 10:16 AM
    • #7
    • 9th Apr 18, 10:16 AM
    You need a cohabitation agreement if you want to be sure there is no future claim. A deed of trust would only have been applicable if you were both owners which you are not.
    • CarbonImage
    • By CarbonImage 9th Apr 18, 12:09 PM
    • 17 Posts
    • 9 Thanks
    CarbonImage
    • #8
    • 9th Apr 18, 12:09 PM
    • #8
    • 9th Apr 18, 12:09 PM
    Did the solicitor give a reason for refusing to right it up such as your girlfriend should seek her own legal advice first to fully understand what it is she is agreeing to?

    Personally I think you're a bit cheeky asking your girlfriend to contribute towards your mortgage whilst at the same time asking her to sign away any beneficial interest she may have. Cake and eating it springs to mind.
    Originally posted by Pixie5740
    No, she already took legal advice and they still refused to do it. I appreciate your comment however we discussed it at length and this was what she agreed to do so it's neither here nor there whether I'm 'having my cake and eating it'. There are also other factors at play that I haven't mentioned here so you might not have all the facts.

    You need a cohabitation agreement if you want to be sure there is no future claim. A deed of trust would only have been applicable if you were both owners which you are not.
    Originally posted by Tom99
    Thanks, this is helpful. I'll look into cohabitation agreements.
    Mortgage
    Jun 2017: 164,995
    NOW: 162,488
    • TBagpuss
    • By TBagpuss 9th Apr 18, 12:29 PM
    • 6,434 Posts
    • 8,324 Thanks
    TBagpuss
    • #9
    • 9th Apr 18, 12:29 PM
    • #9
    • 9th Apr 18, 12:29 PM
    It is correct that a declaration of trust would not be appropriate where the property is in your sole name. A cohabitation agreement would work, and is something which a family solicitor could draw up for you fairly easily.

    You can make it as simple or as complex as you like. Some are limited simply to the house, others include provisions about how any items bought together will be split. You may wish to think about things such as how long you would be willing to let her stay in the property while she looked for alternative accommodation, for instance.

    If you have not done so already, also think about making an up to date will, and consider how things would change - i.e. if something were to happen to you, if you would not leave the house to her, you might still want to build in provision to let her stay there for 3 or 6 months while she was grieving before having to move out (subject to paying outgoings / cooperating with your executors to market the property etc).

    It's best to get the cohabitation agreement done professionally, but even something informal signed by you both is worth having, as claims that could be made by her are based on an argument that there was an explicit or implied agreement that she would gain an interest in the property by contributing to the mortgage etc. Anything in writing and signed by her saying that there is not agreement and that she is not expecting to gain any interest even though she is contributing is worth having!
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