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ukfamilysolicitor
ukfamilysolicitor, Solicitor
Category: Law
Satisfied Customers: 757
Experience:  Qualified Solicitor Currently specialising in Family. Also experienced in Corporate, Employment, Civil Litigation, Debt Recovery
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I recently went on my partners mortgage (transfer of equity

Customer Question

I recently went on my partners mortgage (transfer of equity - ex girlfriend off and me on). I pay half the mortgage and ALL the bills, yet my partner wants declaration of trust where he gets £55,000 absolutely and the remaining split 50/50, should anything happen between us. I have paid in to the mortgage since January 2015. My partner has had the mortgage since June 2015.
My partner and his ex's original mortgage was £136,000 to which my partner said he put £50,000 in to it. The mortgage when transferred stood at £91,000. I have seen no evidence of the £50,000 that my partner said he paid in.
When we moved in to the house in January it was empty, so all my previous belongings were moved in. I have since had to replace items, furniture, white goods etc, which I have paid or put in my name for credit.
Should anything happened between us, how would I stand as there is nothing that allows for what I pay out for and if £55,000 is paid to my partner there would be no equity. Am I entitled to something with my cost of outgoings?
Submitted: 1 year ago.
Category: Law
Expert:  ukfamilysolicitor replied 1 year ago.

Hello

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.

Kind Regards

Caroline

Please remember to rate positively. No credit is received for our work unless positive feedback is received. Your question will not close and I will be able to answer your follow up questions for free.

Customer: replied 1 year ago.

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?

Expert:  ukfamilysolicitor replied 1 year ago.

Hello

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?

Kind Regards

Caroline

Positive feedback is gratefully received

Customer: replied 1 year ago.

It's still as clear as mud but thanks anyway.

Expert:  ukfamilysolicitor replied 1 year ago.

please dont hesitate to say if I can clarify anything further for you.

Kind Regards

Caroline

Customer: replied 1 year ago.

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?

Expert:  ukfamilysolicitor replied 1 year ago.

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.

Kind Regards

Caroline

please remember to rate positively - happy to discuss further

ukfamilysolicitor, Solicitor
Category: Law
Satisfied Customers: 757
Experience: Qualified Solicitor Currently specialising in Family. Also experienced in Corporate, Employment, Civil Litigation, Debt Recovery
ukfamilysolicitor and other Law Specialists are ready to help you
Expert:  Clare replied 1 year ago.
HiJust to add to what my colleague has said there are a number of points to raiseThe fact that he originally invested £55,000 in the property is not relevant - the issue is what was/is the equity in the property at the time of the Transfer into your joint namesThat figure is the amount that he has brought to the Joint investment that you now have, and it is not unreasonable for him to ask to protect that investment with a Declaration of Trust so that you only benefit from the increase in value which arises during the time that you are paying towards the mortgage.The fact that you are paying all the bills does not give you an extra share of the property - so you may wish to reconsider your arrangements thereAll items of furniture etc that you purchase with your funds belong to you and you can remove them if you ever leave - so keep the receipts.If there is to be a Declaration of Trust then a Cohabitation Agreement might also be wiseClare
Customer: replied 1 year ago.

Hi

thabks for the extra info. May I ask, what is a cohabitation agreement?

Expert:  Clare replied 1 year ago.

It is simply an agreement setting out the financial arrangements that you have agreed and what would happen in the event of a separation

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