Legal Q&A: when buying a house as an unmarried couple with a joint mortgage but unequal deposit, what paperwork do we need?

My boyfriend and I want to buy a flat together in our joint names - he will pay for half the property with a lump sum, while I will fund my share with the mortgage. What is the best way for us to organise ourselves?
Merrily Harpur
Fiona McNulty25 March 2017

Question: My boyfriend and I want to buy a flat together but we are not sure how best to go about it. He earns more than me and will be able to pay for half the property using his savings and bonuses. On the other hand, I only have about £25,000 saved and so I shall fund most of the cost of my half share by way of a mortgage. We plan to buy the flat in our joint names and have a joint mortgage but I will be responsible for the mortgage and make all the monthly repayments. What is the best way for us to organise ourselves?

Answer: You may wish to purchase the property as tenants in common because if one of you dies, their share will pass under their will — or if there is no will, under the laws of intestacy — rather than their share automatically passing to the survivor.

You will both be jointly and severally liable for the joint mortgage even if you have a private arrangement with your boyfriend that you are wholly responsible for the mortgage repayments. This means that if you fall into arrears with the repayments, your lender can pursue your boyfriend for the debt as well as you.

It would be wise to put in place a cohabitation agreement to include a Declaration of Trust which will confirm the agreement you have regarding the mortgage and the shares you will each have in the flat. This agreement could include confirmation of what should happen if one of you wishes to sell the flat, how it is valued, and if you have first option to buy before it is openly marketed. This document will protect you both, during the relationship and if it should break down.

These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.

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If you have a question for Fiona McNulty, please email legalsolutions@standard.co.uk or write to Legal Solutions, Homes & Property, London Evening Standard, 2 Derry Street, W8 5EE. We regret that questions cannot be answered individually, but we will try to feature them here. Fiona McNulty is a legal director in the private wealth group of Foot Anstey (footanstey.com).