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Peter Collins
Peter Collins,
Category: Property Law
Satisfied Customers: 8297
Experience:  Barrister at Self Employed
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I would like to understand how my partner and I could

Customer Question

Hello, I would like to understand how my partner and I could structure % ownership of a property we wish to purchase together. and also if we can create a contract for even payment of renovation works where one of us will pay for the work upfront & repay 50% to the other?
JA: Where are you? It matters because laws vary by location.
Customer: London
JA: What steps have you taken so far?
Customer: We are looking at houses
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No
Submitted: 9 days ago.
Category: Property Law
Expert:  Peter Collins replied 9 days ago.

Good afternoon.

My name is ***** ***** I specialise in family law. I’m happy to assist you today and I appreciate that is is important that you find a resolution as soon as possible.

Please note that our discussions on this site are for general information purposes and do not create an lawyer-client relationship. It is always recommended that you consult with a local solicitor for specific legal information.

I'll do my best to resolve this for you, please give me time to review your question and I will revert back to you shortly.

Customer: replied 9 days ago.
thanks
Expert:  Peter Collins replied 9 days ago.

This is perfectly possible, through a deed of trust.

Do you have an idea of the percentage shares that you are looking at and also agreement about the renovation works plan? Another option is to simply have the person paying for the renovations having a larger share of the overall property of course.

It's not an overly complex document and something that could be drafted over a couple of hours' time, subject to your agreement and confirming instructions, of course.

How far ahead are you with the proposal?

Customer: replied 9 days ago.
Thanks. For the property purchase we are looking at approx 60:40 with me owning 60% - purchase price £850k. My partner would like to then get to 50% ownership at a point in the future. Our question would be how would that be structured.For the renovations once the house is purchased we expect these to cost £200k for which I currently have the funds. I will front the costs to do the renovation - but my partner wants to be clear on paying half of this at a future point and wants to understand how we can legally ensure this is the case. He also wanted to understand if this needs to be timebound and how it would be linked to the sale of the property - should we decide to sell prior to him paying 50% of the renovation costs.
Expert:  Peter Collins replied 9 days ago.

I see.

Yes the drafting of the deed will need to take into account all these factors, but again it's possible to do this.

Presumably there would be the exchange of money at some point to rectify the 60/40 split and convert to a 50/50 share. There would be a date at some point in the future where one party will transfer their 10% in exchange for a cash sum.

There would also need to be an exit plan drafted into the deed whereby if the house was sold prior to the monies being paid across to repay the renovation 'loan' then shares would revert to each party in accordance with what had been paid.

It's down to the person drafting to work out the best way to present it.

But all do-able, in my view.

It may be more of a 3/4 hour project to draft though, with the added complexities.

I hope that clarifies matters?

Customer: replied 9 days ago.
it does - thank you
Expert:  Peter Collins replied 9 days ago.

My pleasure, happy to assist. If you need assistance with the actual draft don't hesitate to get in touch. I will leave an offer for direct contact to discuss this for you as and when you require it.

Thank you for your enquiry today. I am happy to answer follow-up questions - please do get in touch with requests for extra information or further queries and I will do my best to help you.