Do you think this is the right way to go about things ... house purchase ... complicated

[mrsmike]

This is the situation - I am probably going to buy a house with my husband costing 250k. I have about 180k cash that I am going to put in from the sale of my current home. He has no cash and will borrow 70k on a mortgage to make it up to 250.

BUT I have 2 children from a previous r/ship, & want to protect their inheritance if I die before husband - so have been advised (by helpful mumsnetter!) to purchase house as tenants in common.

So does that mean we own it in unequal shares - and does this mean that my children would be guaranteed to get the 180k when we are dead & buried? Have been searching the mumsnet archives & some say this arrangement does not apply if you are married - everything has to be shared? Thanks for your thoughts.

[karen999]

Are you in Scotland or England?

[tutu100]

Dp and I are tennants in common as reccomended by our solicitor as we are not married. But in our case it means everything is split 50/50. Not sure if you can stipulate %'s, but I would reccomend you contact a solicitor who would be able to advise you best.

Make sure you have an up to date will as well.

[mrsmike]

In England

[karen999]

Oh ok - it's just that the law in Scotland is different when it comes to the law of succession. England has far better protections. I would speak to a solicitor asap to know what the best course of action would be. Or maybe speak to CAB.

[Scanner]

My Mum and Stepdad have it all written into their wills. Mum owned her own home (mortgaged) and Stepdad didn't own a house when they met. In the begining of their relationship this was a big deal in terms of wills as they both have children. Now 20 years have passed it doesn't seem as important to them or us.

[MrsPuddleduck]

You should hold the property as tenants in common in the following shares
72 per cent - you
18 per cent - either DH or to be divided between you depending on whether or not you are to contribute towards the mortgage.

You then make a Will saying that your share of the house is to pass directly to your children (subject to your husband having a life interest - if that's what you want)

I am turning pc off now but will check in morning if you need any more help (I am a solicitor btw)

[charlieandlola]

You can specify %'s, does not have to be 50% each - doesn't matter if you are married or not.you should also redo your wills also to state what will happen to your % of the house's sale value if you predecease your husband ( I think he has to retain a life interest in it, ie it can't be sold from under him).

[charlieandlola]

willmouse beat me to it, and included proper %'s too

[FairyOnTopOfTheChristmasTree]

When you buy the house you'll need the solicitor to draw up a separate document showing what percentages you each own, as tenants in common, otherwise it will be assumed to be 50/50. You can then leave your percentage to whoever you wish under your Will, which you should get drawn up at the same time.

[mrsmike]

thank you all, v v helpful. If we got divorced, and the house was sold, does it mean I would keep hold of that money - the 180k I am originally putting in?

[Blu]

mrsmike - can't advise on the divorce scenario, nor the effect of marriage, but DP and I are not married, and own our house as tennants in common - our solicitor drew up a covenenat letter for us to sign saying what proportion we each own - and I understand that this means that we are each able to leave DP an amount up to the IHT threshold from our own part. Should IHT ever become an issue - LOL!

[mrsmike]

Anyone have any idea about the "if I get divorced" scenario - would I be able to keep the money I'm putting in to the house? Not planning on it but would like to know, just in case, thank you

[Tinker]

Well, I'm not married and we did the tenants in common thing to protect my money should we split up. If you can be tenants in common whilst married the same principle shoudl apply? You need to speak to a solicitor really