Mortgage dilemma - how to split money?

simonlo

Hi there, I have a dilemma which I'm hoping I can get some advice on.

I currently share a mortgage with my sister but there are actually three of us paying into the mortgage (50% me, 25% each for my sister and her fiance).

The deposit was split three ways however (equally).

Couple of questions..
1) If I was to move out what would we need to do? What are my options in terms of getting the money I put in, back out?

2) When we come to a point where we can get the money, how should this be split? As I currently pay half the mortgage yet only paid a third of the deposit.

Thanks!

Dave_Ham

Surely you are having this conversation with the wrong people?

There is no right or wrong here although surely you would have agreed this before you kicked off the deal?

rising_from_the_ashes

You may find this thread interesting ...... this should've been agreed & legally drawn up before you actually bought the property - was it?

https://forums.moneysavingexpert.com/discussion/3530765

michelle2008

Why aren't you each paying a third? Do all three of you own the house?

DVardysShadow

simonlo wrote: »

2) When we come to a point where we can get the money, how should this be split? As I currently pay half the mortgage yet only paid a third of the deposit.

rising from the ashes has linked to one of the definitive threads on the subject, where people were looking at the problem going in to a deal.There was another at the same time about a splitting couple coming out of a deal, which was a good deal less happy.

The fairest way [IMO] is to say that there is no essential difference between putting in the money as cash, or borrowing. So if you put in 1/3 of the deposit and are paying half the mortgage, that is a cash amount which as a percentage of the price of the house represents your share. The mortgage does not come into this calculation because there is no real distinction between whether you put in your own cash or you go somewhere and rent some cash.

When it comes to leaving the arrangement, you value the house [or sell it] and of that value, you 'take' your share of the house value, but you 'give back' your share of the mortgage. This principle works whether you sell the house or merely sign it over to the others.

simonlo

DVardysShadow wrote: »

rising from the ashes has linked to one of the definitive threads on the subject, where people were looking at the problem going in to a deal.There was another at the same time about a splitting couple coming out of a deal, which was a good deal less happy.

The fairest way [IMO] is to say that there is no essential difference between putting in the money as cash, or borrowing. So if you put in 1/3 of the deposit and are paying half the mortgage, that is a cash amount which as a percentage of the price of the house represents your share. The mortgage does not come into this calculation because there is no real distinction between whether you put in your own cash or you go somewhere and rent some cash.

When it comes to leaving the arrangement, you value the house [or sell it] and of that value, you 'take' your share of the house value, but you 'give back' your share of the mortgage. This principle works whether you sell the house or merely sign it over to the others.

Thanks - so if we put some numbers into this:

House price: £250,000

Deposit: £12,500 x 3

Mortgage payments: 25%, 25%, 50%

Do i therefore own: (£12,500+£106,250)/£250,000 = 47.5% of the house?

So when we come to split any money that's the percentage i'd get?

When you say 'sign it over' does that basically mean remortgaging the house? Not sure how it would actually work.