How do we work out percentage ownership?

Q. My boyfriend and I would like to buy a house together for £300,000. I plan to contribute £150,000 as a deposit and get a joint mortgage in order to pay the balance. I would like my deposit to be reflected as a percentage of the property so the amount of money I am offering remains in line with the value of the property.

I need to be entitled to the exact amount I put in irrespective of the value of the property, if we (split up and) sell the house at a later date. We both want to have equal responsibility for the house and for the issue of ownership.

My boyfriend thinks a better option is to ringfence the £150,000 and spend 50% each on any improvements, because he thinks I would get more of the benefit of any money we jointly spent on improving the house, as I would own a greater proportion of the house, ie. if I owned 75% of the house but only paid 50% towards any improvements I would be getting a better deal than him, if we sold it.

Answer:

Your contribution to the purchase should be reflected as a percentage share which can be shown on the Land Registry entry. Thus you would not lose out if the property increases in value, which you would, if you ringfenced £150,000, neither would your boyfriend lose out if property prices were to fall.

And if you are going to be paying half the mortgage it seems only fair that your percentage share should reflect that – you would own 75% of the property (your 50% deposit and half of the remaining 50%).

If your boyfriend wants you both to own the property 50/50 he should take responsibility for paying the whole of the mortgage himself. That way both of you would be putting £150,000 each, towards the purchase of the house.

If your boyfriend does not want to do that you could contribute 75% towards any improvement work you carry out jointly to reflect your share of ownership.