Single to Joint Mortgage and Ownership

M

martin walsh

Guest
Hi,

i am about to go to a joint mortage with my partner. I currently own the property.
There is a 255k outstanding mortgage and the property is worth about 330k.

My question is one of ownership, how do we go about splitting the house if we were to split?

(my solicitor has been no help here and said its up to us).

Our thoughts were to get it registered as tennants in common and not joint tennants. Then i get the first 75k profit on any sale and that any profit over that is shared 50/50.

Is this possible, advisable and is there a better way?

What have others done?
 
Im not sure it does.

Using the percentage system used here, im not entitled to my 75k back as it were (which is effectively a deposit)

I was to split with my partner a week after remortage (i hope not clearly) she would be entitled to a percentage of profit despite not having made a single mortage payment.
 
Your solicitor is correct - it really is up to you to split things and put an agreement in place as you see fit. If this means taking account of money that one partner put up front or to split the proceeds in line with the how much each contributed to the purchase/maintenance then that's your joint decision. S/he should be able to help with advising you and drawing up a suitable legal agreement though.
 
my friend was buying her brother out and her boyfriend was buying in, when she paid off her brother the 50% of the profit of what the house had risen by her boyfriend signed a document (with solicitors) stating that she had 80/90,000 (cant remember exact figure) more equity in the house than he did. They both had different solicitors to ensure fairness and that they were both represented, maybe your girlfriend will agree to this too.
 
One way to do this would be to work out exactly what % equity you have now i.e agree an actual market value now with your partner(get a proper valuation done now that both of you agree), work out what the actual amount of the mortgage is as a % of that value and the balance is your equity. E.g based very roughly on the figures in your first post the mortgage is circa 77% and your equity right now 23%.

Then you agree to go 50/50 on the mortgage so you get half of the 77% and your partner the other half.In other words your partner owns 38.5% and you own 38.5% plus 23% =61.5%.

You then have your solicitor draw up a co-ownership agrrement that covers this, and also these %'s go into the deed of transfer into joint names.

You should thereafter ensure that apart from the mortgage which you pay 50/50 all other major items of expenditure are split 61.5%/38.5%(you paying the greater amount.

This way your existing equity is safeguarded.

Alternatively have your partner pay you now 50% of the equity now (circa €37,500) and then you can own the property 50/50

These are merely suggestions and ultimately you have to decide what works for you. That said its a bit surprising IMHO that your solicitor didnt suggest a few options.

For both you and your partners sake whatever you decide you should have a co ownership agreement drawn up. In the unfortunate event that you split up in the future then you avoid a lot of aggro (and increased ill feeling)if a good agreement is done while you both could still agree. The agreement should also deal with what would happen if one of you were to pass away(in addition you should make wills), whether in splitting up one or other of you has an option to purchase the others interest as opposed to the property having to be sold etc..
 
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