To ask how you would split a house sale?

[HoneyIshrunktheBiscuit]

You have a couple -

Person A earns £44000
Person B earns £27000

They have been together six years and want to buy a house together. Have saved up so they are paying the deposit 50/50.

Mortgage repayments on the house would £1400 a month. Person A would be paying £850 person B paying £550 to reflect the wage difference.

If the couple were to split how should the sale of the house be split? To mirror the mortgage repayment split or 50/50.

To mirror the mortgage repayment is my first reaction but how did they split the deposit and do either of them have children?

Deposit would be split 50-50. ATM no children but could be in the future - would be interested to k ow if people feel different if there are kids involved.

Deposit split then the percentage of what they have paid. So two seperate figures.

The sol will draw up a deed of trust if asked.

Oh and if your considering a family then I consider it a bad omen that you are concerned about the above!!!

I'm assuming marriage is off the cards since that would entitle one of you to a possible financial gain

The attorney you are using for the purchase should be able to advise you on this. Where I live, if you have lived together more than a year you are considered to be in a common law marriage. This grants you 50% ownership regardless of how much either pay towards the house.

Local laws vary considerably so its best not to be surprised in the case of a relationship breakdown. Ask me how I know

I don't think it's a bad omen - I think we are both logical people and know that though we love each other now situations change. We both want to know what we are getting ourselves in to now rather than having a battle later.

Depends where you are and how you purchase your house.

If you are joint tenants I believe it's less flexible. If you buy as tenants in common a deed of trust can be written up to spell out exactly how proceeds are split if you sell.

My DH put more into our deposit than I did but we pay 50-50 for mortgage etc so if we sold we would each get back the equivalent % of what we put in, and the rest would be split 50-50.

(We bought the house before we were married, we wouldn't have that agreement if we moved again and would instead buy as joint tenants now).

If your deposit is 20% and you're wanting to keep it fair then

Person A - half of 20% and 60% of rest
Person B - half of 20% and 40% of rest

This only works if you're also going to pay for any work to the house at these same proportions.

Once you have kids all money should be family money and house should be 50/50

FWIW OP, I'd just like to add before all the 'you probably shouldn't even be together' posts come along, that you are being very responsible by figuring out these things now before you become further entrenched in a position which might leave any party royally shafted! Well done you!

If I was in your position I would consider equal mortgage payments and an equal split and the bigger earner paying more towards some bills, food or treats. If you are in it for the long term and planning children it's a good idea to go into it with this attitude.
As you are paying 50/50 deposit I assume you are going to have a joint mortgage rather than a tenants in common one? If this is the case in an acrimonious split then the lesser earner/payer will be entitled to 50% of the house regardless of any informal agreement.

If you thinking of splitting why you buying house together. Id do it equal for both in morgage and deposit

Like perilous poster, half the deposit percentage and then the rest as per mortgage. But that's only before kids. After that it's 50/50.

When we bought our first place my (now) husband's parents gave us our deposit and we bought as tenants in common with my DH owning a slightly higher percentage.

Now we're married with a DS and moved into a house it's all 50/50.

I think you're being really sensible,

Doesn't really matter once you do have kids and/or get married you'll feel differently about whatever agreement you make now if you do then split. Particularly if the split is the cause of 1 person i.e cheating etc so I wouldn't spend too much thought on it.

Perilous poster?? Previous poster obviously'

I think life throws too many variables to get too hung up on the % split.

An agreement to protect your deposit contribution is a great idea but the ratio being paid could potentially change in the future.

Person A could be made redundant/get ill/need a change of direction which could reduce their possible income

Person B could have an unexpected windfall/have an unplanned pay rise/become main breadwinner because of potential scenarios outlined for person A.

That's before you through children and the childcare value % into the equation.

It is perfectly sensible to consider the realities of how your house is legally split if you do but I'd be wary of getting too specific because it wouldn't necessarily be of benefit in the long term.

I'm speaking as a woman whose husband had a serious brush with mortality and was made redundant within 3 months of each other. His earning ability is 30% of what it was and I now find myself in the position of main breadwinner. Given that neither of us in our 40s that certainly wasn't part of life's expected plan for us.

I would say that you own the house 50/50 - you're paying different amounts depending on your income but you're equal partners in the relationship. One may get a big pay rise, one may take a few years off with kids - anything other than 50/50 tenants in common is fraught with risks and potential for arguments.

Legally it is 50/50 unless stated otherwise in the deeds.

Deposit 50/50 but wouldn't agree to an equal split if the mortgage payments are unequal. Either that's 50/50 so equal in a split or solicitor draws up a deed of trust in favour of the higher payer. Not fair they get less back after putting way more in.

50/50. If you are buying a house together you are a couple in a committed relationship.

I would pay half the mortgage each and have a 50/50 split to be honest even if meant lower earner doing a weekend job.

A weekend job?

The thing is the lower earner may well end up putting more time and effort into improving the house which would in turn add value.

I would insist on 50% mortgage each, 50% deposit each. Bills can then be split so that the total outgoings for each person is 60:40 or whatever.

Both person direct debits the mortgage into a single account and labels it mortgage. Paper proof of payments in.

I think its needs to be 50/50. When we first bought a house together I think I earned slightly more than my husband but over the last 12 years we have had 2 children, I have gone part time and he has had a career change and promotion.

If it was an unequal deposit that is so much easier to make allowances for as that does not change!

I would say as you are buying a house together then you are committing to a future together. 50/50 deposit. Pool your money. Pay yourselves a monthly wage of x amount each (equal) and the rest is joint. Doesn't matter what either of you earn. You're in it together

If you were platonic friends pooling your resources then I would suggest a proportionate split.

I think it's different if you are a couple. I wouldn't buy a house with a partner that I wasn't prepared to split it 50/50 with.