How to Divide Complicated House Purchase?

[JJLeader]

Hello

We’re buying house together that costs £590,000.
I have a flat which has £62,000 left on my mortgage.
The flat is currently worth approximately £470,000.
I’m releasing equity (£289,000) from my flat.
The remainder of my existing mortgage will be deducted from this so I have £227,000 to contribute to the new house.

We’re taking out a joint residential mortgage of £345,000.

This brings us to £572,000.

Additional costs of moving total £38,200 (stamp duty 34,700, solicitor and mortgage broker fees £2500, survey £1000).

Therefore we will be providing the remainder of the house price (£17,000) and costs (totalling £56,200) from my partner's (Dom) savings.

Dom will be paying the mortgage repayments on the residential mortgage for at least the first few years as I am not earning any money and I am a full time mum. Once I go back to work I can contribute to mortgage payments.

Would it be fair to say that if we totalled up the cash money we’re both putting in and worked these numbers out as percentage, then that would illustrate what percentage of the property we each own?

These are the numbers:
283,200 total amount of cash put in by me and Dom.
227,000 from me, which is 80.16%
56,200 is Dom’s, which is 19.84%

Rounding the numbers, could we say that I own 80% and Dom owns 20%?

Additionally, we plan to make improvements on the property, from internet searches it appears that a 'floating deed' would be the way forward for any money put into the property after this 'fixed' amount goes in?

Any suggestions, advice or thoughts would be great. It's so stressful trying to figure this out. We do not plan on breaking up and we have a young baby, we just want to go into this with our eyes open and understanding what each other own.

Thanks for your help

How are you going to pay back the equity release? Are you going to rent out your property?

Or do you mean your flat is being sold ?

Not fair at all. If you're unmarried you're effectively giving him up your money. Buy the property as tenants in common. It doesn't matter who pays the mortgage if you're a SAHM but it does if you're unmarried. Please please get independent legal advice.

This is grossly unfair to him.

You would get 80% of the % of the property bought by mortgage, so you get 80% of any increase in the value of the part of property bought by mortgage.

You should divide the property as follows:
OP = 227000 = 36%
Dom = 56000 = 9%
Mtg = 345000 = 55%
Total = 628000 = 100%
You take the first 36%
he takes the next 9%
the balance is divided equally and you both pay off the mortgage equally.

This assumes that the mortgage you take out for your contribution is financed from your resources and not from your earned income. If Dom is going to be paying that mortgage as well, he should get more than you.

Agree with poster above, but you couldn’t be able to work that as TIC unless you split the remaining 55% and added it respectively to your shares, making it 63.5% and 36.4%

Alternatively why not sure do JT and have a legal agreement to protect your larger deposit. That way you can share the house and the equity but you’d get your deposit back out again.