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deciding how to split the shares on our new home?(26 Posts)
Just seeking opinions...
Me and my partner are buying our first home.
On the solicitor letter it states how we want the share of the house split I.e 50/50 etc.
I've said to my partner I would want a bigger share of the property as I'm footing the whole deposit and he's just paying the solicitor and stamp duty.
He thinks I'm being unreasonable and Has gone ballistic over it.
If it were the other way around I would understand. We both work and the way it's working out would be he's paying mortgage and I'm paying the bills ext. both amount to similar each month mine being 200 cheaper but I earn 250 less per month.
Am I being really horrible? I just want to be able to protect mine and my sons future encase anything may ever happen down the line
I think that you should work out how much you are both putting in to the 'pot'
And then how much is house and do sums around that
You can safeguard your deposit-my friend put a clause that she got her deposit back in full (maybe plus 3%?) And then the remainder would be split in 2 in the event of a split.
I can see how he would object to that given he's paying £250 more than you.
Lets assume you're buying the house for £250k. Your deposit is £50k
It's easier to work with round figures.
My suggestion is this: work out how much of the mortgage that £250 represents. Say that is 25% of the mortgage - so £50k.
You can split the house in to 5 equal parts.
One fifth is what you own, free of mortgage, as it's been paid for by your deposit.
One other fifth is what he owns on his own, but subject to the mortgage. He's paid for this by the portion of the mortgage he's paying for on his own.
The other three-fifths is owned by you both, jointly and equally, subject to the mortgage.
So, if the figures above are accurate, after the mortgage is repaid he will own as much as you. If your deposit is only small (say, £5k), he'll soon own more than you, but that's fair, as he'll have paid in more than you, and that's what you think is right, as otherwise you wouldn't have asked to be given credit for your deposit.
All this would only really have any effect if you separate. If you get married it would most likely be of historical interest and have no practical effect in the event of a subsequent divorce unless your marriage is really short and your deposit very large.
Gosh no - work out the amounts you are paying in as a % of the cost of the house -( you the deposit, him the solicitors fees etc) this would be the % you would each get back from the sale and then you'd split the rest.
Oh just realised that won't work because of different amounts you'll be paying monthly - oh dear
I can pay the mortgage and still have ample amount left over it makes no difference.
I just pay bills as I do all the money and he couldn't be trusted to do it all and pay on time ect. The cost of the bills are only 100 less than paying the mortgage. I also pay childcare for our son with that.
Eventually I'll earn more than him as I've only been in my job 18 months.
Does it cost to get a clause drawn up by solicitor or is it within the deeds statement?
You're buying a house with someone you couldn't trust to pay bills on time?
In our situation when we were at this point the first 5% went to the person who'd put the deposit in (back in the days of 5% deposits). Then it was an even split. We had a joint house account out of which the mortgage, bills, maintenance costs etc were paid.
He has been moddicoddled most of his life.... he would know he had to pay the bills but is not pro active in remembering and budgeting hence why I do it. all he has ever had to worry about was his phone before me.
We do have a bills account which is in my name and all the money is paid into that.
How much is your deposit as a proportion of the overall cost of the property? He sounds like a dick. Going ballistic about you trying to ensure you are not ripped off is a big concern.
10% so 18k.
I wanted a bigger share of the house as I've saved for this for the past 10 years and if we were to split he would then walk away with a deposit for a new hours that he would never of had if it weren't for me.
Apparently it's not fair though!?
Has your solicitor explained about the difference between owning a house as tenants in common rather than joint tenants?
It's my understanding that if you want to have unequal shares, you have to be tenants in common. This means that you would need a declaration of trust setting out what happens if one of you wants to sell their share, and you need a will because if one of you dies, the other party will not inherit the other part automatically.
Hmm. Obviously you can protect your investment and you must. But watch his behaviour carefully - he's only thinking about himself here.
It does state that on the form stating if we are joint tenants it's 50/50 automatically but if we want to be tenants in common what shares do we want to split the value of the house. Hence why I've put the question forward as I didn't realise you could have shares of the property like that.
I will ask about the will. It doesn't state that in the documents but you may be correct so I will ask. Thanks
When me and DH bought our house (not married at the time) he put 100k down and we still split it 50/50
I can understand your reasoning but it's rather clinical
Sorry just noticed you has a child - that's different then
I'm a solicitor - you're being completely sensible insisting on protecting your deposit. He should understand your (very valid) reasons and respect them, rather than going ballistic!
Talk to your solicitor about the options for the deed of trust - you could say the first £18k is to go to you and the remainder split, or deal with it in percentages. The benefit of the percentage option is that your "extra" part will increase in value if the property value rises.
As PPs have said, definitely have wills put in place as if you hold the property as tenants in common, your share would not automatically go to the survivor.
Your DP has a point from a property point of view, he's paying substantially more over the long term than you.
Your household finances and the way you split stuff up sounds complicated though. Why not work out what all the household bills are and each pay a set amount into a joint account that everything is paid out of?
I do understand long term that he will be paying me overall. But, I also look at if I chose not to pay all the bills that came with house... boiler cover, utilities, DIY, ect the house would not be habitable so yes he is paying the "house" but I am still contributing to the upkeep of the property.
Like I said previously I could pay the mortgage and he pay the bills it doesn't make a slight bit of difference.
Maybe I will look into just dividing everything.
At the same token I've suggested having a joint bank account and he's totally against it! So we cannot put bills in a joint account as he's said no. All the bills and rent currently come out of mine and he inputs a lump sum every month. I have pitched it for ages to have both wages go into an account so it's equal and stops each other asking to pay for something for example.
So I'm not sure what else I can think of!
My worry would be that with your current arrangement he can prove he has paid all the mortgage and that you have paid none. Pay all the bills including the mortgage from the one account. Don't leave it to him. Sounds like he might take a mortgage break and forget to tell you.
Id pay all bills including the mortgage from your account and get him to py in half the amount each month.
Protect your deposit so you get that back first in the event of a sale but agree if he saves (from his own spare money) and wants to put in lump sum before you next remortgage he can have the same terms of protection.
Although if im honest thus would put me off buying with him.
You need a joint accout just for the mortgage and bills. Both your money is going towards your living costs ( mortgage AND bills) that is life. By earmarking his money for the mortgage and yours for the bills you are making yourself far too vulnerable.
You are both buying and living in it and paying monthly to do so.
He is being incredibly opportunitistic.
In his current idea of arrangement it will take him about 8 years to make up the 18k difference.
You need separate legal advice from each other.
He's happy to have a jointly owned home, but can't stomach a joint account?
Take your money and run.
We recently bought our first house together and I paid stamp duty and deposit.
I also earn more at the moment.
However, we are a team and also having a baby where I plan to be off for a year and when I return (if I decide to) it will be part time only.
We are splitting the equity equally as further down the line things even out eventually anyway.
Get a joint acct and make the mortgage go out of that. Add up all your "joint expenses" (mortgage, bills,CHILDCARE) then split those and you both put in.
That's what our solicitor advised and we are tenants in common with 50/50. Demonstrating you are both putting in for the mortgage is important.
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