Willson Posted August 23, 2007 Share Posted August 23, 2007 Me and the missus are buying a house in the not too distant future. I am going to be putting in about 5 times as much as her to the deposit. I know that we can do a deed of trust to say how the money should be split up if we were to split up, but I don't understand the maths. I *think* it should be that whatever we put in initially is multiplied by how much the house has increased in value, and any remaining profit is split 50/50. She thinks we should just get back what we have put in and any remaing profit should be split 50/50. My brain just goes to mush with all the figures, can anyone clarify it for me please? Link to comment Share on other sites More sharing options...
Charlotte Posted August 23, 2007 Share Posted August 23, 2007 You can divide it how you like. It all depends on how the trust deed is drawn up. (usually tenants in common - in equal shares) You can say that one of you will have a 70% share and the other 30% for example of the whole of the amount when you come to sell. Or you can say that one of you is entitled to a fixed amount whilst the other gets the 'balance' - or you both get a fixed amount. Or you can have a combination of the two. You obviously need to consider the redemption of the mortgage before splitting any sale proceeds and also the posibility of a first refusal being inserted but all this can be discussed with whoever is drawing up the deed. Link to comment Share on other sites More sharing options...
Jake Posted August 23, 2007 Share Posted August 23, 2007 I *think* it should be that whatever we put in initially is multiplied by how much the house has increased in value, and any remaining profit is split 50/50. What remaining profit? If you do it that way wouldn't it exactly equal the amount the house has increased in value? (Assuming the house actually does increase) Link to comment Share on other sites More sharing options...
merckx Posted August 23, 2007 Share Posted August 23, 2007 I *think* it should be that whatever we put in initially is multiplied by how much the house has increased in value, and any remaining profit is split 50/50. This doesn't make sense. You're putting 5/6 ( 83.3%) of the deposit She's putting in 1/6 (16.7%) of the deposit. She thinks we should just get back what we have put in and any remaing profit should be split 50/50. Appears to be logical especially so if you share your household responsibilities in every other way. Link to comment Share on other sites More sharing options...
The Raven Posted August 23, 2007 Share Posted August 23, 2007 Im sure you can work it out however you like, Should you split and there be kids involved i wouldnt think the Deed of trust wouldnt stand up to much in court. Link to comment Share on other sites More sharing options...
imi Posted August 23, 2007 Share Posted August 23, 2007 Me and the missus are buying a house in the not too distant future. I am going to be putting in about 5 times as much as her to the deposit. so if she is putting in 10 and you are putting in 50, then surely the profits should be divided the same way. Its seems completely unfair if the profits were divided 50/50. but at the end of the day, its your call. imi Link to comment Share on other sites More sharing options...
Willson Posted August 23, 2007 Author Share Posted August 23, 2007 What remaining profit? If you do it that way wouldn't it exactly equal the amount the house has increased in value? (Assuming the house actually does increase) lol thats a good point. so if she is putting in 10 and you are putting in 50, then surely the profits should be divided the same way Yeah, thats what I was trying to get at, but I cocked it up. So does everyone agree with this? If we sell the place, after fees are paid, whatever is left is split 5/6 to me and 1/6 to her? Thanks everyone so far :-) Link to comment Share on other sites More sharing options...
Jake Posted August 23, 2007 Share Posted August 23, 2007 Probably easiest to kick her out now. Saves all those complicated maths later. Link to comment Share on other sites More sharing options...
ivan Posted August 23, 2007 Share Posted August 23, 2007 Probably easiest to kick her out now. Saves all those complicated maths later. If you can't agree at this early stage there's not much future in the relationship. Link to comment Share on other sites More sharing options...
Willson Posted August 23, 2007 Author Share Posted August 23, 2007 I have saved over 20k and I dont want to lose that because I cant come up with a suitable contract. edit - forget it. I wasn't after relationship advice. I guess Ill just go along with whatever she wants Link to comment Share on other sites More sharing options...
ivan Posted August 23, 2007 Share Posted August 23, 2007 LOL - that's what I did. Worked for us. Link to comment Share on other sites More sharing options...
Willson Posted August 23, 2007 Author Share Posted August 23, 2007 Didn't work for my parents. She took half the house and half his pension and now he has to move across the country just so he can afford to buy a place. Not really relevant, but I am still trying to look after myself, more than "us". Link to comment Share on other sites More sharing options...
sparkyspar Posted August 23, 2007 Share Posted August 23, 2007 yeh got rid of mine 6 mnths ago then got a supra best thing eva did,handles much beta,dsnt argue back and when u boot it she dsnt complain either (only jokin about the bootin by the way)he he , oh by the way hello all, first time ive said hello (very rude of me soz) Link to comment Share on other sites More sharing options...
Willson Posted August 23, 2007 Author Share Posted August 23, 2007 yeh got rid of mine 6 mnths ago then got a supra best thing eva did,handles much beta,dsnt argue back and when u boot it she dsnt complain either (only jokin about the bootin by the way)he he , oh by the way hello all, first time ive said hello (very rude of me soz) Fair play to you. And welcome :-) Link to comment Share on other sites More sharing options...
imi Posted August 23, 2007 Share Posted August 23, 2007 If we sell the place, after fees are paid, whatever is left is split 5/6 to me and 1/6 to her? Thanks everyone so far :-) so in percentage terms that works out to be. 16.67% for her. 83.33% for you. Link to comment Share on other sites More sharing options...
Willson Posted August 23, 2007 Author Share Posted August 23, 2007 Okay, I was happy with that... but now I am thinking that surely it must take into account what we have paid off of the mortgage? IE, the relative percentages invested after a few years would be much closer. Its getting complicated now and I am starting to think that it might be easier to just agree to her idea Link to comment Share on other sites More sharing options...
imi Posted August 24, 2007 Share Posted August 24, 2007 Okay, I was happy with that... but now I am thinking that surely it must take into account what we have paid off of the mortgage? IE, the relative percentages invested after a few years would be much closer. Its getting complicated now and I am starting to think that it might be easier to just agree to her idea depends if you are splitting the mortgage 50/50 or 16/83? Link to comment Share on other sites More sharing options...
Willson Posted August 24, 2007 Author Share Posted August 24, 2007 The payments would be split equally. Link to comment Share on other sites More sharing options...
Lewis Posted August 24, 2007 Share Posted August 24, 2007 depends if you are splitting the mortgage 50/50 or 16/83? Who's paying the other 1%? Link to comment Share on other sites More sharing options...
Havard Posted August 24, 2007 Share Posted August 24, 2007 Who's paying the other 1%? Me!! Wilson! How much is the deposit? Surely if it's 12K. You put in 10k and she puts in 2K, she then technically owes you 4k... Whatever happens after that should be 50/50 especially if the mortgage has been paid 50/50 too!! H. Link to comment Share on other sites More sharing options...
nick_karkie Posted August 24, 2007 Share Posted August 24, 2007 ok how about this. You tell her that without you then you would not be getting any place at all, so she should accept a 70/30 split on total profit after each of you have already taken what you put in. She should really get 50/50, but you are in a position to bargain because you are putting in almost all of the deposit, so without you then it is a no go, but without her then it is possible you could find the extra 1/6th. Like you mentioned with your dad, dn't be soft on women, if things turn sour they always act like they never knew who you were in the past and have no sympathy. Link to comment Share on other sites More sharing options...
Havard Posted August 24, 2007 Share Posted August 24, 2007 ok how about this. You tell her that without you then you would not be getting any place at all, so she should accept a 70/30 split on total profit after each of you have already taken what you put in. She should really get 50/50, but you are in a position to bargain because you are putting in almost all of the deposit, so without you then it is a no go, but without her then it is possible you could find the extra 1/6th. Like you mentioned with your dad, dn't be soft on women, if things turn sour they always act like they never knew who you were in the past and have no sympathy. Bloody hell!! So is this a loving relationship or just a business venture?? When people get together you can't judge them by the money they have available at the time. Things change very quickly and it could be her subsidising you next!! How would that feel if she didn't give you a fair crack of the whip!! H. Link to comment Share on other sites More sharing options...
Charlotte Posted August 24, 2007 Share Posted August 24, 2007 Like I said at the outset, trust deeds can be drawn up however you like. You can both have what you've put in and then split whatever is remaining 50/50 or in a different way. Link to comment Share on other sites More sharing options...
JohnA Posted August 24, 2007 Share Posted August 24, 2007 Probably easiest to kick her out now. Saves all those complicated maths later. He he, good call:d Also is she going to have a veto if it comes to selling? Probably, eh? So you risk getting stuck with a house you can't sell if you later want to move on. I say 50/50 everything, or nothing at all. In fact I've gone for 100% on deeds so I can make any move I like, whenever and however I like. Surely you can extend your mortgage lending by 15% or so, avoiding her involvement in the deeds. If she feels flush and wants to jump in the housemarket she can get something else on her own. Or you can have a tiny percentage on that one, and 50/50 rights on any profits. Link to comment Share on other sites More sharing options...
nick_karkie Posted August 24, 2007 Share Posted August 24, 2007 Bloody hell!! So is this a loving relationship or just a business venture?? When people get together you can't judge them by the money they have available at the time. Things change very quickly and it could be her subsidising you next!! How would that feel if she didn't give you a fair crack of the whip!! H. Not judged by money, and I agree that the subsidising will go back and forth during the relationship, but have to be prepared for the worst. So if you were/are a millionaire would you marry without a pre-nup. Anyone seen The Break-Up? Only takes one little argument over a bag of lemons and then a bit of game playing and its the end. Link to comment Share on other sites More sharing options...
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