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Thomas
Thomas, Solicitor
Category: Family Law
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Experience:  UK solicitor
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Hi, my partner and I have a mortgage in joint names both names

Resolved Question:

Hi, my partner and I have a mortgage in joint names both names are ***** ***** deeds. Should anything happen in the future my partner would like the equity split to be 80/20 in her favour rather than 50/50. I'm happy with this as she put more money in originally and for peace of mind she wants this in some sort of legal form. It seems if I get this done she will be happier and as the saying goes "happy wife happy life" Does something like this exist, can it be done? and if so how much would this cost? Thank you. Dave
Submitted: 3 years ago.
Category: Family Law
Expert:  Thomas replied 3 years ago.
Hi Dave,

Are there any children of your relationship with your partner?

Kind regards,

Tom
Customer: replied 3 years ago.

Yes, we have a son who is 6. Just to confirm we have no plans to split up. This is just something she would like putting in place as she has been left high and dry before and doesn't trust anyone, she would like her mind putting at rest by having a legal document to say the equity split should the house be sold will be 80/20 in her favour not the current 50/50


Thanks

Expert:  Thomas replied 3 years ago.

Hi

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

There is a document which allows you to state that you own different percentages of the equity in the property, it is called a “declaration of trust”.

It is a deed sworn by you both in which you specify how the proceeds of sale of the property are to be divided when it is sold or when one of your dies. This could take account of the desired percentage split and state that you hold the percentage shares that you have specified.

In order for the declaration of trust to be effective though, you must hold your shares as “tenants in common” and not as “joint tenants”.

If you and you partner presently hold the house jointly (as joint tenants) then each person's share would pass to the other upon death regardless of any directon made in any Will. You should sever the joint tenancy by using Form SEV from the Land Registry (you will have to send it to them and if you have any questions about completing the form you should call their customer service number - they are very helpful):-
http://www1.landregistry.gov.uk/publications/?pubtype=49

Once you have severed the joint tenancy then your shares will pass according to your Wills and you can specify your shares in the declaration of trust.

A solicitor will be able to draft a declaration of trust in accordance with your instructions for around £150 + VAT.

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
Customer: replied 3 years ago.

Thank you for that response Tom. I think I understand it. Does the declaration of trust stand up if the house isn't sold but was just remortgaged to release equity? So of the equity released through a remortgage I'm entitled to 20% and my wife 80%? Also if one of us dies does the declaration of trust make it more complicated with who then owns the house or is this averted if its stated in the will or in the declaration of trust? Thanks Dave

Expert:  Thomas replied 3 years ago.
HI Dave,

It's good practice to execute a further declaration of trust each time you remortgage, really.

You can't remortgage without the consent of both of you, so there is a built in protection as to shares in this regard.

If you hold as tenants-in-common with a decaration of trust the the deceased's person's share would pass to whoever they state it should pass to in their Will.

So, if your partner were to die her share would pass to her children and their guardian would be entitled to register as the owner of the property on their behalf. They would then consult with you about how to deal with it (eg sell and split the equity).

Kind regards,

Tom
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Customer: replied 3 years ago.

Thanks Tom, I was a little dubious about this service but its saved me a lot of time and I know the information Im getting is correct. Thank you so much for your time. I will make sure I rate this an an excellent service. Thanks again


Dave

Expert:  Thomas replied 3 years ago.
No problem, Dave. Thanks for your kind comments!

Tom

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