Welcome to Just Answer
Thank you for your question.
I am a Solicitor and will assist you.
What your partner is proposing is that you hold the property unequally as tenants in common.
If you agreed what he was currently proppsing - then should you seperate - your partner would get the first £55k and half of any share of any left over equity. As you have quite rightly pointed out - you would only get a half share of any equity and if there wasnt any equity then you would end up with nothing.
I note that you have received no evidence of your partner paying the lump sum that he previoulsy said he had. If you are going to agree such an arrangement then you need to see his proof. I would also reccomend that you get a few valuations done on the property now and its current value. if there is less equity that £55k then you need to consider renegoitating the deal that has been offered.
Whilst it is possible to argue that you have contributed towards the mortgage - in the event that the house was sold and there was no equitt - the court would give regard to the agreement that you are now making and the court might uphold your current agreement so you need to make sure that this is a fair deal.
Please note that if you later remarried then the position would change. You would be entitled to make a claim in respect of all of the matrimonial finances - should you divorce - and this would include all equity in the property.
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Thank you for your reply however it does not tell me anything that I don't know already know.
What I was wishing to know is because I pay half the mortgage and ALL bills, would I not be entitled to anything additional? I'm finding it confusing that although he had the mortgage since 2009 and put said 50k into it, how is the mortgage still 91,000 after 6 years and how does it seem fair that I pay half mortgage plus all bills. Do utilities not come in to it?
This type of matter - for unmarried partners is dealth with under the Trust of Land Act.
To have a cliam under the trust of land act then you need to have:
1) paid the mortgage and/ or 2) added value to the property by way of renovation / redocoration.
Paying other bills such as utilies food ect simply does not count at all.
The issue that you have is that a court in this type of claim would also consider any agreement that you have. This is why you have to be very careful in respect of the agreement you are now proposing to enter into. The court could see this as the parties intentions and might not go behind this. It is better to get the full picture now in relation to the value fo the house and the current equity.
Does this clarify?
Positive feedback is gratefully received
It's still as clear as mud but thanks anyway.
please dont hesitate to say if I can clarify anything further for you.
So basically if I agreed to the declaration of trust and there is no equity in the house, and everything goes wrong between us (although I must point out there are no issues or problems with us), I could potential be without a home and no money to start again with, regardless of what I have and do pay for?
I am sorry but the answer is yes. Whilst I appreciate that this is not what you want to hear - I do have to be honest.
If you split in many years to come - then you might have more of an argument that your contributions should be recognised and the deed isnt fair - this is asking the ocurt to declare the interest you have in the property under a trust of land act.
It is better to get it right now. As above - get a valuation and ask for proof.
please remember to rate positively - happy to discuss further
thabks for the extra info. May I ask, what is a cohabitation agreement?
It is simply an agreement setting out the financial arrangements that you have agreed and what would happen in the event of a separation