Equity share on first home
My girlfriend and I are buying our first home together. As it stands, I'll be putting quite a large chunk of the deposit (roughly 70%) and I'll be paying about 60% of the monthly mortgage repayments.
Is there a convenient tool / method for calculating the equity split we get? I know it's not going to be 50/50 because of my larger contribution; I just want some way of getting a good idea.
from the comments: Yes, so we understand that there needs to be a written agreement drafted by a Lawyer. That much is obvious to us. I just want to get a feeling for how to calculate what the split will be in the agreement.
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Note that the equity doesn't have to be directly proportional to the amounts each of you has contributed -- and depending on where you are and your particular situation that may not be the law's default. If you are at all concerned about the ownership -- and you should be -- sit down with a lawyer and put your agreement in writing. Otherwise what you assume is happening may not be what is actually happening... And having something like this to argue about makes both relationships and separation much more painful.
However, if that is the formula you want to use, it's straightforward: Track the totals of how much each of you has contributed to the purchase (and upkeep? You need to think about that) of the house. The ratio of your equity, under this system , is the same as the ratio between your contributions. One can work out a formula for that, but it's just as easy to work with the real numbers.
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