House co-ownership percentage?
Discussion
Can anyone help with my maths please?
A&B buy a property for £312,995
A puts forward a deposit of £35k
B puts forwards a deposit of £50k
In the co-ownership percentage what percentage does B own over A? If someone can let me know the working so I can let the mrs know and she can't argue about it, that'll be great
A&B buy a property for £312,995
A puts forward a deposit of £35k
B puts forwards a deposit of £50k
In the co-ownership percentage what percentage does B own over A? If someone can let me know the working so I can let the mrs know and she can't argue about it, that'll be great
techmoan said:
Can anyone help with my maths please?
A&B buy a property for £312,995
A puts forward a deposit of £35k
B puts forwards a deposit of £50k
In the co-ownership percentage what percentage does B own over A? If someone can let me know the working so I can let the mrs know and she can't argue about it, that'll be great
35k would buy you 11.1% of the property.A&B buy a property for £312,995
A puts forward a deposit of £35k
B puts forwards a deposit of £50k
In the co-ownership percentage what percentage does B own over A? If someone can let me know the working so I can let the mrs know and she can't argue about it, that'll be great
50k would buy you 15.9% of the property.
So B currently 'owns' 4.8% more of the property.
techmoan said:
Yes currently going through the paperwork with solicitors. They can't advise on percentage so trying to work out what percentage is what. We will be paying mortgage 50/50 so just working out percentage from deposits.
PH answer:Put in 35K each and with the remaining 15K buy an MX5.
Then it's 50:50, save on solicitors, you'll be tenants in common and you'll have an MX5!
Ekona said:
I'd say they own it 50/50, unless there was a contract drawn up to say otherwise.
They may have put in different deposit amounts, but that's not relevant to ownership percentages. I think.
This is the way to do it,a proper contractThey may have put in different deposit amounts, but that's not relevant to ownership percentages. I think.
Many years ago my then girlfriend and I bought a house with me paying about 60% of the deposit.She worked at a solicitors office and drew up a "declaration of trust" I think it was called.
This document was crucial for me because years later we split up.She stayed in the house and had to pay me 60% of the equity to leave.
You don't have to specify an absolute percentage, as long as it can be reasonably ascertained at a later point. I would put something like "the property shall be held in such proportions as the parties contribute to the deposit and to the mortgage payments in aggregate on an ongoing basis".
The raw % split figure is never going to be accurate or fair past the first mortgage payment.
The raw % split figure is never going to be accurate or fair past the first mortgage payment.
Muncher said:
You don't have to specify an absolute percentage, as long as it can be reasonably ascertained at a later point. I would put something like "the property shall be held in such proportions as the parties contribute to the deposit and to the mortgage payments in aggregate on an ongoing basis".
The raw % split figure is never going to be accurate or fair past the first mortgage payment.
Will it not? Say if person B owns 4.8% more than A.The raw % split figure is never going to be accurate or fair past the first mortgage payment.
When they come to sell surely they just split the equity but person B gets 4.8% more and it will be fair whether the house has increased in value or lost value?
I may be completely wrong here. Maths or working these things out confuse me!
A&B buy a house for £200k with the aid of a 75% mortgage.
A contributes £40k to the deposit
B contributes £10k to the deposit
A therefore owns 80% of the property.
Disregarding interest, they pay the mortgage equally every month.
At the end of the term:
A has contributed £115k (£40k + £75k of mortgage repayments)
B has contributed £85k (£10k + £75k of mortgage payments)
Yet according to the simple declaration of trust A still owns 80% of the property....
A contributes £40k to the deposit
B contributes £10k to the deposit
A therefore owns 80% of the property.
Disregarding interest, they pay the mortgage equally every month.
At the end of the term:
A has contributed £115k (£40k + £75k of mortgage repayments)
B has contributed £85k (£10k + £75k of mortgage payments)
Yet according to the simple declaration of trust A still owns 80% of the property....
Do you want to know in case things don't work out and you have to sell up?. If so, B has put in £15K more than A. And the house is valued at £313K. When you sell, see what the % increase is, and apply that to the £15K.
So, being simplistic, you separate in 10 years and the house has doubled, and sells for £626K. B gets £30K more than A (A gets £298K, B gets £328K).
Because if the house has doubled, B's £50K has become £100K, and A's £35K has become £70K.
So, being simplistic, you separate in 10 years and the house has doubled, and sells for £626K. B gets £30K more than A (A gets £298K, B gets £328K).
Because if the house has doubled, B's £50K has become £100K, and A's £35K has become £70K.
TwigtheWonderkid said:
Do you want to know in case things don't work out and you have to sell up?. If so, B has put in £15K more than A. And the house is valued at £313K. When you sell, see what the % increase is, and apply that to the £15K.
So, being simplistic, you separate in 10 years and the house has doubled, and sells for £626K. B gets £30K more than A (A gets £298K, B gets £328K).
Because if the house has doubled, B's £50K has become £100K, and A's £35K has become £70K.
That doesn't work if for whatever reason one person pays more of the mortgage or one person stops paying the mortgage for a while, or if you split up, one person continues to live in the house so pays all of the mortgage for a year or two before they sell it.So, being simplistic, you separate in 10 years and the house has doubled, and sells for £626K. B gets £30K more than A (A gets £298K, B gets £328K).
Because if the house has doubled, B's £50K has become £100K, and A's £35K has become £70K.
Muncher said:
TwigtheWonderkid said:
Do you want to know in case things don't work out and you have to sell up?. If so, B has put in £15K more than A. And the house is valued at £313K. When you sell, see what the % increase is, and apply that to the £15K.
So, being simplistic, you separate in 10 years and the house has doubled, and sells for £626K. B gets £30K more than A (A gets £298K, B gets £328K).
Because if the house has doubled, B's £50K has become £100K, and A's £35K has become £70K.
That doesn't work if for whatever reason one person pays more of the mortgage or one person stops paying the mortgage for a while, or if you split up, one person continues to live in the house so pays all of the mortgage for a year or two before they sell it.So, being simplistic, you separate in 10 years and the house has doubled, and sells for £626K. B gets £30K more than A (A gets £298K, B gets £328K).
Because if the house has doubled, B's £50K has become £100K, and A's £35K has become £70K.
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