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Thomas
Thomas, Solicitor
Category: Family Law
Satisfied Customers: 7602
Experience:  UK solicitor
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i own a property with a morgage and have a new partner who

Resolved Question:

i own a property with a morgage and have a new partner who intends moving in with her daughter , we r looking to extend for more room and have a new morgage agreement ready to sign,my new partner hasnt anything to sell or any money but the new morgage will be a joint morgage based on both of our earnings , how do i stand if in a short period the relationship doesnt work out as i have two young daughters to consider.
Kind regards
John
Submitted: 3 years ago.
Category: Family Law
Expert:  Thomas replied 3 years ago.

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

I assume that there are no children of your relationship with your partner and each person’s children are from earlier relationships.

If you are both named on the mortgage offer then the lender will require that the registered legal title is in both of your names.

In the absence of any express agreement there is presumption that the proceeds of sale are split equally. So, unless you made an express agreement stating your respective interests in the property then upon completion of the remortgage/transfer it would be assumed that you each had a 50% interest in the equity of the property. Presumably you do not consider this equitable and so wish to specify your interest.

The way that you specify your interests would be by executing a declaration of trust. This is a deed sworn by you both in which you specify how the proceeds of sale of the property (ie. when it is eventually sold) are to be divided. This could take account of your large existing interest in the equity by either specifying that you should receive this amount first and dividing the remaining equity equally (or as a percentage proportion) or it could simply state that you receive x% and your receives y%.

It can also deal with other things such as buy-out and how payment of outgoings and extension affects the percentages. You really should consider getting a solicitor to do this for you because you could prejudice yourself if you do not.




My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.


Kind regards,


Tom
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