Buying a property together is one of the biggest financial decisions a couple can make. When relationships break down, the question of who owns what can quickly become complex, especially if one person put down a larger deposit than the other.
Whether you're going through a divorce, separating from a partner, or simply planning, it’s important to understand how unequal contributions are treated when it comes to joint mortgages.
In this guide, we’ll explain your rights, the options available, and how to protect your investment.
How Do You Split a Property with Unequal Deposits?
When both names are on the mortgage and title deeds, the default assumption is that ownership is split 50:50, even if one person contributed more upfront. This is known as joint tenancy ownership.
However, many couples choose to own a property as tenants in common instead. This allows each person to own a specific share, which can reflect how much they put in as a deposit.
What Happens with a Joint Mortgage if You Split Up?
If you separate, both individuals listed on the mortgage remain legally responsible for the loan, even if one partner moves out or stops contributing to repayments. Mortgage lenders will not permit one party to exit the agreement unless the mortgage is fully paid off, transferred entirely to one person, or the property is sold.
To better understand your responsibilities and available options, this guide from Bell Financial Solutions on joint mortgages after separation explains what might happen and what steps you can take next.
Properties can sometimes remain tied up in divorce proceedings long after the divorce itself has been finalised. According to data from The Guardian UK, about one-third of UK couples continue to live together post-breakup, due to financial constraints.
These financial factors make decisions regarding joint mortgages far more complex, with implications for both parties' future stability. Here are some actions people can take;
Sell the Property and Split the Proceeds
One of the most straightforward options is to sell the property and split the remaining equity once the mortgage is cleared. This is often the default approach when neither party can afford the mortgage alone or both want a clean financial break.
The division of proceeds depends on your legal ownership structure. If you're joint tenants, proceeds are typically split equally. As tenants in common, you're entitled to the percentage stated in your ownership agreement or declaration of trust. Without formal paperwork, disputes may arise, and the courts could decide what’s fair based on financial contributions and intent.
Before selling, make sure you:
- Agree on a sale price and agent
- Repay any remaining mortgage and fees
- Settle outstanding debts secured on the property
- Pay legal costs and estate agent fees
- Decide how to divide the net equity
Continue Joint Ownership Temporarily
In some situations, couples may choose to retain joint ownership even after separating. This is less common but may be suitable when:
- Children are involved, and the parents agree that one should stay in the home
- The housing market is weak, and selling would result in a loss
- One partner cannot buy the other out immediately, but plans to shortly
Sometimes, a legal order is used to delay the sale of the property until a specific event occurs, like children turning 18 or a set number of years passing. During this period, the person remaining in the home may take on full mortgage payments, though this must be agreed upon formally.
One Person Buys the Other Out
If one person wants to stay in the home, they can buy the other out by paying them their share of the equity. The buyer will usually need to remortgage in their sole name and take full legal and financial responsibility for the loan.
To calculate the buyout amount, the property must first be professionally valued. Then:
- Deduct the outstanding mortgage from the property’s value
- Divide the remaining equity based on ownership shares
- Agree on a lump sum payment to the exiting partner
You can estimate affordability with our Mortgage Calculator.
How Long Does It Take to Buy Someone Out of a House?
Buying someone out of a house can take anywhere from 4 to 12 weeks, depending on the complexity of the situation, how quickly both parties cooperate, and the responsiveness of third parties like lenders and solicitors.
Here’s a breakdown of what influences the timeline:
1. Property Valuation (1–2 weeks)
The first step is to get an up-to-date valuation of the property, either through an estate agent or a qualified surveyor. This figure will form the basis for calculating each person’s share of the equity.
2. Agreeing on Terms (1–3 weeks)
Both parties must agree on the value of the property, the equity split, and the exact buyout figure. If there’s a declaration of trust in place, this usually simplifies things. Without it, negotiations may take longer – especially if there are disagreements or uncertainty about who is entitled to what.
3. Mortgage Approval (2–4 weeks)
If you’re the person buying the other out, you’ll typically need to remortgage the property into your sole name. This involves applying for a new mortgage, passing affordability and credit checks, and securing approval from the lender. Delays can happen if your financial circumstances are borderline or if documents are missing.
4. Legal Work and Transfer of Equity (2–3 weeks)
Once the mortgage is approved, your solicitor will handle the transfer of equity, which legally removes the other person’s name from the title deeds and updates the Land Registry. They’ll also handle the formal mortgage completion process and disburse any agreed-upon payments.
5. Delays and Disputes
If there are legal disputes, disagreements over valuations, or complications with affordability checks, the process can take significantly longer – sometimes several months. Seeking early legal and financial advice can help avoid these pitfalls.
Top Tip: To speed things up, make sure you have all necessary documents ready, such as ID, proof of income, and the original ownership agreement if one exists.
How Do You Calculate the Cost of Buying Someone Out of a Mortgage?
To calculate how much you need to pay your partner to buy them out:
- Get a current valuation
- Deduct the remaining mortgage balance
- Divide the equity according to your ownership share
- Pay your partner their share
For example, if your home is worth £300,000, with a mortgage of £200,000, the equity is £100,000. If you own the property equally, each person is entitled to £50,000. You would pay your partner that amount and take on the full mortgage.
Taking Over the Mortgage After Separation
If you want to stay in the property after a separation and take full ownership, you’ll typically need to take over the mortgage in your name. This process is formally known as an assumption of mortgage.
You’ll need to:
- Buy out your partner’s share of the equity
- Pass affordability and credit checks
- Settle legal paperwork
This can be a time-consuming and emotionally taxing process. Luckily, Bell Financial Solutions offers a helpful overview of this process in our guide to an assumption of mortgage after a divorce.
How Do I Protect My House Deposit from My Partner?
If you’re putting in a larger deposit than your partner when buying a property together, it’s important to protect that contribution from the outset. Without clear legal arrangements, you risk losing some or all of your initial investment if the relationship ends and the property is sold or divided.
Tenants in Common
One of the most reliable ways to protect an unequal deposit is to buy the property as tenants in common, rather than joint tenants. This structure allows each party to own a specific share of the property, which can reflect the proportion of the deposit each person contributed.
Declaration of Trust
To further protect your contribution, you should also sign a declaration of trust at the time of purchase. This is a legal document that sets out exactly how the equity in the property should be divided if the relationship breaks down. It can include details about deposits, mortgage contributions, and even how future increases in property value should be shared.
Keep Written Records
Keeping clear, written records of all financial contributions is also important. This includes not only the initial deposit, but also monthly mortgage payments, renovations, and other costs related to the property.
Although it might feel uncomfortable to have these discussions early on, getting independent legal advice and formalising your arrangements is a sensible step. It doesn’t mean you expect things to go wrong, but it does protect both parties and reduce the risk of future conflict.
Is My Partner Entitled to My Deposit if They Pay More Towards the Mortgage?
This is a common concern, and the answer depends on a few factors, including whether the ownership share was recorded when you bought the property or if a declaration of trust was signed. This will provide clear legal evidence of your ownership. Verbal agreements or promises may also play a role, but can be harder to prove.
Even if your partner has been paying more towards the mortgage each month, they won’t automatically gain a larger share unless there is legal evidence of such an agreement. In disputes, courts may take into account contributions made over time to help determine ownership.
If the arrangement wasn’t formalised at the start, it can be much more difficult to claim a larger share based solely on the deposit.
Removing Someone from a Mortgage
Lenders rarely allow someone to be removed from a mortgage without a formal remortgage or full repayment. If one partner wants to take over the home and mortgage, they must:
- Apply for a new mortgage in their name only
- Meet the lender’s affordability and credit criteria
- Get legal and financial advice before proceeding
If the application is unsuccessful, both names will remain on the mortgage, and both parties will continue to be liable, regardless of who lives in the property. This can have serious implications for credit scores and future borrowing.
For a more detailed explanation of this process, read our helpful and insightful guide on how to remove your name from a mortgage after divorce.
Understanding the complexities of joint mortgages and unequal deposits during a divorce or separation requires careful consideration of your rights and options. For expert advice personal to your unique situation, speak to one of our experienced divorce mortgage advisors.
Book a consultation today for more guidance.
.avif)
%20(1000%20x%20666%20px).avif)
