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jelly baby | 16:56 Thu 14th Oct 2021 | Law
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My daughter and partner are separating. They have a joint mortgage. They signed a ‘declaration of trust’ when they bought their property.
There is approximately £100k equity in the property. He put around £30k towards the deposit and she around £15k. Are we correct in thinking that when (if) the property sells, he takes his original stake, she hers and the remainder is split 50/50?
Also, just to complicate things, she is three months pregnant (partner is the father) and self employed, due to covid she has had no work for the past 18 months. We don’t know how she stands legally. We live in the north, daughter lives and works in London. We don’t think she could get a mortgage on her own after having no income for 18 months and potentially no income for the next couple of years. He says if she stays in the house he won’t be able to pay maintenance as he will have to pay rent, and won’t be able to afford both. We know he earns around £90K. Any help appreciated.
Thanks in advance from a desperate mother!

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The deed of trust means exactly what you described. After the mortgage has been paid off, and solicitors fees paid, each will get the amount stated in the deed of trust, any remaining funds will be divided 50/50.
As an unemployed person your daughter has no chance of getting a mortgage. She may not be eligible for certain benefits if she has substantial savings in the bank ie the money from the sale of the house.
No one can say what to do, but I would suggest once the baby is born she should get a job ( why wait 2 years?) and after 6 months apply for a mortgage on the smallest/cheapest property available. Depending where she lives, a deposit of around £37K will go a long way to persuading a mortgage company to loan.
I am extremely sorry to hear this and wivva child involved

this happened in my family ( I put up the deposit) - but expressed it as a percent of the buy price and stipulated the same percent at selling
so it depends on the exact wording of the deed

and everyone was happy ?

nope they were too busy screwing ...... each other and the house in London made a loss - - whhaaaaaat ?

I cd hardly believe it- but you can make a loss on a house in Lundy if you really really try

( so it was moi 20% and the two young lovers- - ex-luvvuz that is! 40 and 40)
cant she come and live back in the north? if she has no job and soon no house tying her to london, why stay there?
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Bednobs, she intends to come back for the birth and to stay for a few months after, however, her partner will remain in London. All her work and friends are there, she’s lived there since she was 23…she’s now 40. She works in the entertainment industry which is why she moved there in the first place, she couldn’t get work up here. It’s all such a mess at the moment!
So sorry to hear that. Perhaps she needs a change of career?

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