Buying house with partner, percentage ownership question

B

Bananaman

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Hi All,

Im currently purchasing a property with my partner. I have savings that I will be putting towards the deposit / renovation costs, she doesn’t have any savings and wont be putting any funds into the property initally other than 50% of the mortgage payments.

The purchase price is 230,000 we are going for a mortgage of 216,000. I will be paying the 14,000 deposit and appox 30,000 in renovation costs along with all transaction costs i.e solicitor charges of appox 2,500 and survey and valuation of appox 500. Meaning I will be putting 45-47,000 of personal savings into this.


We were thinking about expressing the property ownership as fractions and our solicitor has said this is no problem to do, meaning we don’t have to draw up a co-ownership agreement which he was going to charge us for. The house for example, could be 27/40ths mine, 13/40ths hers (I just made up those fractions as an example)

We have to go back to him with ownership fractions. So my questions are

Has anyone any experience dividing ownership like this, any drawbacks? and what fractions would be fair given the above figures?


Thanks in advance!
 
The total cost of the property will be 263k. Your partner will be "contributing" €108k, so she will own 108/263 or 41.% of the property.

An alternative approach to consider would be that you would own the house 50/50. In that event, she will have to be responsible for €131,500 of the €216k mortgage. So she should make 61% of the mortgage repayments.

The attraction of owning it 50/50 is that any further expenditure e.g. decoration, repairs would be simply split 50/50. Though I suppose you could split them 59/41 as well.

meaning we don’t have to draw up a co-ownership agreement which he was going to charge us for
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I really don't understand this. If you are buying a house with someone else, you should draw up an agreement covering what happens to the house if you split up. This is covered in this excellent post.
 
Deleted my method as it was cross posted with Brendan's and quite frankly mine was wrong and would only give you a headache.
 
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