Buying property with DP - uneven deposits, advice needed

[Catseyes5]

DP and I want to buy a property together soon. Currently we live in my flat and he pays towards the bills. I have approx 30k equity in the flat.

DP had around 80k saved for a deposit and our original plan was to buy jointly with a deed of trust protecting our separate share of deposit with a mortgage for the remainder. However he has recently been lucky enough to be gifted a significant sum of inheritance, around £500k, which would allow us to live mortgage free.

This has raised a few questions as to the best way forward. We still want to live together but I also still want to build up an asset as I won’t be paying into a mortgage if we live mortgage free.

1 - We jointly buy a property of higher value allowing us to take out a small mortgage and ‘contribute’

The relative gifting the money has stipulated it can only be used to buy a house.

2 - I keep my flat as investment and let this - although I’m a little shy of 25% equity for a BTL I can get consent to let in the short term.

If scenario 2, presumably this would mean DP buying the property in his own name which I’m worried will make me feel ‘less’ of a right to live there, have decisions on decor etc.

Or 3 - I sell my property, use the cash towards the new and then use the money I would have paid into a mortgage and put it in savings eg a LISA.

We are both in our late twenties with a joint income of around £80k so could take on a mortgage relatively easily.

[fuckingcovid]

I'd say keep part of the original plan and protect your own interests by ringfencing each others share.
Sell your flat and that is your share. He puts in his original £80K plus £300K (ish) which is also protected. Take out a small mortgage so that you are named and can have a share in any built up equity. He would still have a large lump sum for emergencies, holidays, investment etc.

I'd see a mortgage broker as it's complicated, and there is the legal aspect when you marry.

[Blackbear19]

Katewitch does have a point.
Its fairly easy to divide things yours and mine while you are just two individuals / married couple. The you fall pregnant life gets complicated.

If you were to separate in 5 years time with a couple of kids under your arm surely they should have the same quality of life with both parents. Not having time split between a £500k big house and a cramped £80k 2 bedroom flat.

It's a complicated situation as I do get the desire to protect his assets. But at the same time you are planning on entering a marriage. It might actually be better to be legally married before he buys but you need advice on that.

[HollowTalk]

Where does the OP say her flat is worth £80K?

[BuffaloCauliflower]

If you’re getting married why not just pool everything? Isn’t the point of marriage to be a team, instead of going in working out how to keep things seperate. Whatever happened to ‘what’s mine is yours?’

[Blackbear19]

Ok I might have mixed up with him having £80k to deposit saved.
Either way clearly her flat isn't going to be the same size as his £500k house.

Very often when a couple split the woman still ends up with the lions share of the child care and costs. Could she still afford the mortgage on her flat and childcare while he Lords it up in the Manor?

I'm thinking that Katewitch is right they should be equal in the house.

[lunar1]

Buy together and take a mortgage for the % you can realistically own. He can keep his remaining money in savings.

[SwedishEdith]

How long has he lived with you and has that enabled him being able to save £80k (a lot, especially if he's earning approx £40k)?

[HollowTalk]

You say he's paid towards the bills while living in your flat. Do you mean you've paid all the mortgage and he's lived rent-free? Is that how he's saved £80K while he only earns £40K? When you were trying to cope with paying for the mortgage, did he help out at all financially?

[JoJoSM2]

If you’re actually getting married soon, then it will be all shared anyway. Presumably you’ll run your household together and the house will be your ‘family home’ and not ‘his house’.

I agree that having a btl is a hassle but you can always use the income to pay into your pension as that’s tax efficient. Alternatively, just sell the flat to invest the money elsewhere.