If you are buying a house along with someone else, one party may be contributing more to the deposit than the other. You need to think about what will happen when the house is sold. If you do nothing, the sale proceeds after your mortgage and sale costs have been paid will be divided on a 50/50 basis. This might be unfair to the person who has contributed more to the initial purchase price.
We can draw up an agreement between joint purchasers, so that it is clear who gets what when the house is sold. A standard security can be put in place to try and protect the party who has contributed the larger share in the event of insolvency of the other party. In some circumstances the title can be shared on a basis other than 50/50% – for example 75/25%. Sometimes one party agrees to contribute more to the mortgage than the other party and this can be taken account of if required.
Every case is different and we can tailor the agreement to suit your requirements.
You may also be interested in reading Family Law Partner Fiona Rasmusen’s blog post: Buying a home together? You might need a cohabitation agreement.
