Joint mortgage advice
Discussion
As you may see in another thread myself and my gf have bought a place together.
One question on the solicitors document is causing some misunderstanding.
Joint tenancy or tenancy in common.
Basically we don't know what to do- it must be fair on both our behalfs, i dont want anyone feeling hard done by.
Hopefully we will never split up, we have been together for 4 years for which 3 of those years she has pretty much lived with me at my parents place but you never know.
Anyway the deposit and fees are going to be 34k , i,m paying 27k of this amount.
The monthly payment on the mortgage is just under a grand.
We have worked out our estimated total household bills each month at £1600.
I will pay 900 and she will pay 700 so we have just included the whole total as a job lot, not one pays mortgage and one pays bills.
In my mind it is as much hers as is mine but legally what do we do?
We are going to speak to the solicitor this week but thought a bit of advice here couldn't hurt.
cheers
So if we go tenancy in common what is the deal? How do we determine who own what ?
Is it as simple as working out the percentage and then just going with whatever that is? Within a couple of years she hopes to pay more so i,m not sure what that means either.
One question on the solicitors document is causing some misunderstanding.
Joint tenancy or tenancy in common.
Basically we don't know what to do- it must be fair on both our behalfs, i dont want anyone feeling hard done by.
Hopefully we will never split up, we have been together for 4 years for which 3 of those years she has pretty much lived with me at my parents place but you never know.
Anyway the deposit and fees are going to be 34k , i,m paying 27k of this amount.
The monthly payment on the mortgage is just under a grand.
We have worked out our estimated total household bills each month at £1600.
I will pay 900 and she will pay 700 so we have just included the whole total as a job lot, not one pays mortgage and one pays bills.
In my mind it is as much hers as is mine but legally what do we do?
We are going to speak to the solicitor this week but thought a bit of advice here couldn't hurt.
cheers
So if we go tenancy in common what is the deal? How do we determine who own what ?
Is it as simple as working out the percentage and then just going with whatever that is? Within a couple of years she hopes to pay more so i,m not sure what that means either.
Edited by m3jappa on Tuesday 7th July 21:21
Edited by m3jappa on Tuesday 7th July 21:25
I think tenancy in common is based on the percentage you put in, so for arguments sake if the house was costing 200k and you are putting in 13.5 % of your deposit and your other half is putting in 3.5% of it, you get the same percentage out of the sale and then divide the rest by half. (Seems the fairest way to me)
The best way to do it would be a tenants in common agreement with a 'declaration of trust' document stating that in the event of the property being sold, the first proceeds would be used to repay the deposit you put down, with any remaining equity split 50/50. This way, you both share equally in any future rise in property values, whilst still protecting the larger contribution you make upon purchase.
This is a simple document for the solicitors to draft and is pretty cheap to do.
This is a simple document for the solicitors to draft and is pretty cheap to do.
Jespin said:
The best way to do it would be a tenants in common agreement with a 'declaration of trust' document stating that in the event of the property being sold, the first proceeds would be used to repay the deposit you put down, with any remaining equity split 50/50. This way, you both share equally in any future rise in property values, whilst still protecting the larger contribution you make upon purchase.
This is a simple document for the solicitors to draft and is pretty cheap to do.
This is a simple document for the solicitors to draft and is pretty cheap to do.
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