Protecting myself while buying property with partner.
Discussion
Hello, I am looking to buy a new property to live in with my new partner. I will have a significant sum of money going into the property for the deposit whereas she has non.
I want the property to be in both of our names.
Should we split up, I want my initial equity to be solely mine and then a 50/50 split of any equity that we have built up through mortgage payments.
Is the above achievable?
Does the below affect anything as I have been warned by someone who isn’t a solicitor that I could end up paying maintenance for the children and that it may be difficult to retrieve my equity if this meant them essentially being homeless.
She has 2 young children both under 10.
She only works part time and without my income would be in income support.
The children's dad pays no maintenance.
I understand that the above isn’t terribly romantic but I have been burned bad previously and I would be risking too much if I could not protect my assets.
Thanks for taking the time to read and have a good day.
I want the property to be in both of our names.
Should we split up, I want my initial equity to be solely mine and then a 50/50 split of any equity that we have built up through mortgage payments.
Is the above achievable?
Does the below affect anything as I have been warned by someone who isn’t a solicitor that I could end up paying maintenance for the children and that it may be difficult to retrieve my equity if this meant them essentially being homeless.
She has 2 young children both under 10.
She only works part time and without my income would be in income support.
The children's dad pays no maintenance.
I understand that the above isn’t terribly romantic but I have been burned bad previously and I would be risking too much if I could not protect my assets.
Thanks for taking the time to read and have a good day.
get yourself a good solicitor and explain it
Not quite the same but
Daughter bought house with boyfriend between her and me put in a lot of money as deposit
He put in nothing
Split up , house being sold for very little profit less than £5k and he wants a share
legally he's entitled to it
Morally he can do one !!
Me and daughter lost thousands in theory
Not quite the same but
Daughter bought house with boyfriend between her and me put in a lot of money as deposit
He put in nothing
Split up , house being sold for very little profit less than £5k and he wants a share
legally he's entitled to it
Morally he can do one !!
Me and daughter lost thousands in theory
For arguments sake we'll say the house is £200K and your putting in £55K.
Your £55K is buying 27.5% of the property. The remainder is split 50/50, so 72.5% is equally split, she owns 36.25%, you own 36.25% plus 27.5% so 63.75%.
So if a split happens then sell house, pay mortgage off, you get 63.75% of whats left.
You know your circumstances so will know best, just be careful and get the deal written by a solicitor
Your £55K is buying 27.5% of the property. The remainder is split 50/50, so 72.5% is equally split, she owns 36.25%, you own 36.25% plus 27.5% so 63.75%.
So if a split happens then sell house, pay mortgage off, you get 63.75% of whats left.
Sheetmaself said:
Should we split up, I want my initial equity to be solely mine and then a 50/50 split of any equity that we have built up through mortgage payments.
You sure you want a 50/50 on equity built up through mortgage payments/increase in value considering? Doesn't sound like she'll contribute towards the mortgage. Perhaps buy solely in your name.You know your circumstances so will know best, just be careful and get the deal written by a solicitor
Yes, it is possible. Your situation sounds very similar to mine.
My partner and I live in a house we bought for £460,000.
£360,000 was equity at purchase, of which £160,000 was from an inheritance of mine.
We have a document drawn up by our solicitor which states that I own £160,000 plus half the remaining equity and my partner owns the rest.
My partner and I live in a house we bought for £460,000.
£360,000 was equity at purchase, of which £160,000 was from an inheritance of mine.
We have a document drawn up by our solicitor which states that I own £160,000 plus half the remaining equity and my partner owns the rest.
I do want the 50/50 split from paying the mortgage as for me I do believe that as a partnership it doesn’t matter where the money iz coming from as her being at home Thursday and Friday and doing housework has a value too and allows me to do other things.
I am concerned about the being able to live in the house until the child is 18 as she would not be able to pay the mortgage and I definitely do not want to be paying a mortgage and supporting her if the relationship has broken down for the next 13 years! But likewise i would like the house to be in our names.
I will get all of this drawn up legally i just wanted to know if this is possible.
Thanks for the replies so far, is there anything that can be done to have it so that if the relationship dissolves and one of cannot afford the mortgage they cannot expect to live in the property??
I am concerned about the being able to live in the house until the child is 18 as she would not be able to pay the mortgage and I definitely do not want to be paying a mortgage and supporting her if the relationship has broken down for the next 13 years! But likewise i would like the house to be in our names.
I will get all of this drawn up legally i just wanted to know if this is possible.
Thanks for the replies so far, is there anything that can be done to have it so that if the relationship dissolves and one of cannot afford the mortgage they cannot expect to live in the property??
She is onboard with it as we both believe that it is a fair thing to do considering the difference in equity between us.
To give some insight i will be putting in over a third of the value of the new property as a deposit and the mortgage payment will actually be higher than her monthly wage.
I can afford the payments without her, but cannot get the value required for the mortgage without her. So having the mortgage solely in my name isn’t an option for my preferred property.
To give some insight i will be putting in over a third of the value of the new property as a deposit and the mortgage payment will actually be higher than her monthly wage.
I can afford the payments without her, but cannot get the value required for the mortgage without her. So having the mortgage solely in my name isn’t an option for my preferred property.
elanfan said:
Solicitor - deed of trust.
This - did one with my now wife when we first bought together 4-5 years agoThe deed set out the calculation for splitting equity in event of a split. We took it a step further, and said that any future equity, after my initial deposit was returned, was split in proportion to payments made into the joint account which was set up to pay household bills (ex. food) and nothing else as I paid 10x what she did there too.
An agreement as to an asset split between unmarried cohabitants is usually enforceable. Absent such agreement, in the event of a dispute, the court would look at the parties' relative contributions to the equity.
A note of caution: agreements between married couples as to asset splits on divorce may be enforced, but are subject to the court's power to override them.
A note of caution: agreements between married couples as to asset splits on divorce may be enforced, but are subject to the court's power to override them.
Am i right to presume that the childcare would work in my favour for the asset share though?
My logic is that as the (significant) higher wage earner i will be providing for the children, which to be clear i am fine with and want to as they are my family, as their father provides no financial support so all provisions for the children will come from the two of us.
My logic is that as the (significant) higher wage earner i will be providing for the children, which to be clear i am fine with and want to as they are my family, as their father provides no financial support so all provisions for the children will come from the two of us.
As other have mentioned, you can have your deposit covered by a deed of trust. You also need to think about how you want the property to be owned. Obviously speak to the solicitor you go with, but Joint tenancy you both own 100% of the property but with tenants in common each person owns a qualified share of the property (50/50, 25/75 etc). It is important to consider the pros & cons of each and consider things like survivorship etc.
Sheetmaself said:
Am i right to presume that the childcare would work in my favour for the asset share though?
My logic is that as the (significant) higher wage earner i will be providing for the children, which to be clear i am fine with and want to as they are my family, as their father provides no financial support so all provisions for the children will come from the two of us.
I was referring to time spent looking after children, but financial support is relevant also. My logic is that as the (significant) higher wage earner i will be providing for the children, which to be clear i am fine with and want to as they are my family, as their father provides no financial support so all provisions for the children will come from the two of us.
Can you not buy the house yourself and pay all the mortgage?
She can put 'her half' away if the inevitable happens.
That's what I do. House is mine and I paid for it, I also pay the utility bills. OH pays half the council tax and the food bill.
Should we split up I don't think there's anyway she could have a claim on my house, particularly as she's living rent free.
Assuming everything goes well on our part we'll eventually buy another house going in 50:50 from the start, I'll keep mine as a pension.
She can put 'her half' away if the inevitable happens.
That's what I do. House is mine and I paid for it, I also pay the utility bills. OH pays half the council tax and the food bill.
Should we split up I don't think there's anyway she could have a claim on my house, particularly as she's living rent free.
Assuming everything goes well on our part we'll eventually buy another house going in 50:50 from the start, I'll keep mine as a pension.
Psycho Warren said:
Also be aware that if it all goes horribly wrong, she may try and bring "children of the family" up as a means to get maintenance out of you. Its rare but possible you could get lumped with some child maintenance for another persons kids.
Absent adoption, the OP cannot be compelled to provide financial support for the children, but the OP comes across as a decent person and might choose to do so.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff