One for the cynics - Buying a house with partner
Discussion
I'm not sure if this should be within this section or the Homes section.
I am in the process of selling my first house which i have rented out over the past 4 years, the reason for the sale is i am relocating back to T'Norf and need to free up some equity for a new home with my partner.
I'd like to add her onto the mortgage / house documents. The equity is mine and most if not all of the mortgage will be coming from myself, but given i am dragging her (she is originally from the south) 200 miles North, part of me thinks that this is fair.
I've had advice that i can make her a shareholder in the property without being equal, but i'm keen to know the pitfalls of an arrangement like this.
A family member has suggested that i am mad to do this.
So the basic summary is:
Relocating, bringing partner
Would like to add her name onto the home / mortgage documents
The money is mine, equity and mortgage
I'm just a little worried about any legal risks down the line if we were to ever split.
I am in the process of selling my first house which i have rented out over the past 4 years, the reason for the sale is i am relocating back to T'Norf and need to free up some equity for a new home with my partner.
I'd like to add her onto the mortgage / house documents. The equity is mine and most if not all of the mortgage will be coming from myself, but given i am dragging her (she is originally from the south) 200 miles North, part of me thinks that this is fair.
I've had advice that i can make her a shareholder in the property without being equal, but i'm keen to know the pitfalls of an arrangement like this.
A family member has suggested that i am mad to do this.
So the basic summary is:
Relocating, bringing partner
Would like to add her name onto the home / mortgage documents
The money is mine, equity and mortgage
I'm just a little worried about any legal risks down the line if we were to ever split.
'My' first house was mortgage and title in my name only, but the conveyancing solicitors drew up an agreement to the effect that my (at the time) gf was a contributor to the property, and that I had provided equity of £x thousand up-front, and in the event of any separation she would get her share of any increase in equity.
(Done as a fair way of not diddling the gf out of anything but not leaving me open to her running off with half my equity)
Since married her, so it didn't really matter...
(Done as a fair way of not diddling the gf out of anything but not leaving me open to her running off with half my equity)
Since married her, so it didn't really matter...
keirik said:
if you're not married then tenants in common gives you lots of flexibility to stipulate who gets what.
Just read through the differences, sounds as though Tenants in Common would be the way to go definitely. I am wondering if it is even worthwhile other than showing "commitment" to my partner.the example is:
- 25% deposit will be paid by me
- 100% of mortgage likely paid by me
- Bills likely paid by her.
I'd like to give her some stake in the property but seems there are risks either way? TiC or JT?
I suggest you set up a joint bank account, both pay into it and pay all the property/living costs from that. Percentage split can be as you think fit. Then tenants in common, your percentage to be 25% plus your share of the remaining 75%, hers to be her share of the 75% based on what you each pay into the joint account.
Jimbo NW said:
I'd like to add her onto the mortgage / house documents. The equity is mine and most if not all of the mortgage will be coming from myself, but given i am dragging her (she is originally from the south) 200 miles North, part of me thinks that this is fair.
Which part would that be exactly?
Jimbo NW said:
I'd like to add her onto the mortgage / house documents. The equity is mine and most if not all of the mortgage will be coming from myself, but given i am dragging her (she is originally from the south) 200 miles North, part of me thinks that this is fair.
I've quoted this because it's the bit that some here will ignore. As you say, she is contributing by moving with you and if she is paying the bills then she is also indirectly contributing to the mortgage. I think you're right to want her to benefit from that.General Fluff said:
I've quoted this because it's the bit that some here will ignore. As you say, she is contributing by moving with you and if she is paying the bills then she is also indirectly contributing to the mortgage. I think you're right to want her to benefit from that.
This is correct, I think sorting out before moving is is good. I would look at protecting my down payment as a % of the overall value. mgv8 said:
General Fluff said:
I've quoted this because it's the bit that some here will ignore. As you say, she is contributing by moving with you and if she is paying the bills then she is also indirectly contributing to the mortgage. I think you're right to want her to benefit from that.
This is correct, I think sorting out before moving is is good. I would look at protecting my down payment as a % of the overall value. I'm trying to figure out what is a fair % as i'll be paying most, anything less than 5% seems shocking but still equates to over £20k which is more than she would ever put in.
Hard world trying to keep everyone happy!
Me and my non-married other half have a similar arrangement - we needed the equity from her house, and my earnings to afford our current house. Her equity is ring-fenced via a deed of trust, so if we do split and sell, she will get her equity back, and everything subsequent will be split equally between us.
We've both been burned in the past, and this was the most secure way for both of us.
Similarly, you may need to consider how any life cover policies are structured to ensure neither of you are left wanting in the event that one of you dies. Morbid, but necessary I'm afraid.
We've both been burned in the past, and this was the most secure way for both of us.
Similarly, you may need to consider how any life cover policies are structured to ensure neither of you are left wanting in the event that one of you dies. Morbid, but necessary I'm afraid.
mjb1 said:
You want a declaration/deed of trust drawing up. Your conveyancer should be able to do this, for a fairly small fee.
This. I got massively burned in the past and my current partner and I both sold our properties to buy a house together. It's in both our names and she contributes almost 50% to the bills and mortgage. We got one of these drawn up just to protect the equity put in. I put down about 85% of the deposit while she the remainder. If the worst happens then we sell up, get our original steak back and then divide any profit on top 50:50. We both agreed that was the fairest way.Don't listen to anyone that trots out "romance is dead", "if you don't trust her why move in together", etc. Even the most in love couples can fall out of love or feel differently over time.
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