Two people (not married) purchasing home to live in:
House and buying costs = 600k
Person A contributes 260k (through sale of home)
Person B contributes 40k
Joint mortgage of 300k each person making equal payments.
What would be a fair legal agreement should things not work out in later years that takes into account initial capital and potential appreciation of property value.
On sale of the house - The equity amounts fall back to the two investors ie €260k & €40K. Then the profit after the mortgage has been paid and the equity refunded - 50% of the profit is divided in the same ratio as the equity you each bring to the table. The rest of the profit is divided equally. I hope this makes sense!