Is it possible to Split property ownership 50/50

Golden Coin

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Couple are buying a property.
Deposit is split 2:1
Long term view-What are the (fairest)options to get each individual 50%ownership of the property.
 
The simplest method is to purchase the property as tenants in common. The shares of ownership are determined at the time of purchase, be they 50:50 or 2/3:1/3, or whatever the people agree on.

The result of this is that each has an identifiable share in the property and if it came to selling then the proceeds of sale (net of mortgage etc) are split among the owners in their respective shares. If one owner dies, that persons share goes into his/her estate, not automatically to the other owner as is the case in joint tenancies

It would be worth considering getting all parties to sign a contract prior to purchase setting out what is to happen in certain circumstances (e.g. the couple splitting up etc). One person may want the right to buy out the other, and having an agreement as to how each share is to be valued would be very useful.
Each person also needs a will to ensure that something totally unexpected doesn't happen if someone dies (e.g. the surviving owner could end up owning the property with the deceased owners parents, or siblings).
 
Hi J26
Thanks for the reply with interesting/ great information,
I understand the reason behind your explanation of how 2/3; 1/3 works but is it the fairest option or is it as you said the simplest
Would the mortgage be split 2/3; 1/3 so when the house is bought ownership is 2/3; 1/3
How would it be possible to get 50/50 ownership with different deposit amount?
(The reason we would like to have the split 2/3; 1/3 is so we can use up a lump sum of our savings to reduce the term of the mortgage)
 
Nobody can advise you as to what is fair between a couple - that's up to you both to work out. The shares you consider fair is up to you - you could use level of contribution to the deposit as a basis of determining, or if you intend to make differeing contributions to the mortgage. Personally, unless there's going to be a major imbalance in contributions, I'd probably go 50:50. Having said that, a friend of mine went 18.75%:81.25% with his partner as she was contributing most of the money.

The thing is that you decide in advance what shares you are to have, and if you want 50:50 even though one person is contributing the entire deposit, then you can choose to take it 50:50. It's done in the deed of transfer when the property is bought, and the shares are fixed from then on.

The mortgage is slightly different - the bank will likely insist that you are jointly and severally liable for it, and it will be part of your mortgage deed. This means that if the mortgage is not paid, the bank can pursue either or both of you for the entire mortgage.
 
Is there an option for two mortgage accounts on the same property i.e. suppose one party is overpaying their share and the other is just paying the standard repayment. When it comes to selling the house it will show the debt as being e.g. 25% party 1; 15% party 2; and equity of 60%?
 
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