Buying with relatives

Newbuyer27

I have recently bought a house with my brother. We have paid equal amounts for the deposit and he would not have been able to get a mortgage without me due to incomplete employment history.
My question is how do we split the house when it comes down to selling? He is planning on moving into the house with his girlfriend and does not expect me to contribute to mortgage repayments. He is also spending a lot of time renovating the property doing a lot of manual work himself.
I am tied into the mortgage for 2 years so will not be able to buy my own property until this period is over and will have to continue to rent.
Different people I speak to have different opinions on how we would divide the revenue if we sold the house after 2 years.
If he pays the mortgage and his girlfriend pays rent for half of the mortgage should I be entitled for the share she is paying?
My view is that if we let out the house to tenants they would cover our mortgage so we would both have equal share of the property. However, some friends think that if he pays the mortgage he should be entitled to whatever payments he has made and I should only get my proportion of the deposit back.
I will have to continue to rent with no return on investment whereas he will be paying off the mortgage and get a capital gain from this.
Has anyone been in the same situation and knows a fair way to do this?
Thanks!

hazyjo

In an ideal world... this would have all been agreed before buying.

Who's in the house at the mo? Bit confused by 'He is planning on moving into the house with his girlfriend'.

His GF should not pay rent for half the mortgage. A fair contribution towards bills, food, etc, but it should not be classed as 'rent' nor should it be classed as 'for half the mortgage'. You don't want to find she's entitled to anything.

Can she not just buy your half off you? 'Tied in', maybe - but you could pay the penalty and end it. How long was it for? How long have you both had the flat? You say 'recently' - so this all seems very strange to me. Was none of this discussed beforehand? Did he have the GF then? In a falling market, I can't see why you'd have bought something you didn't have some commitment to for at least say 5 years. Maybe that's just me...

Could you just pay the mortgage penalty, sell it and let them buy somewhere together?

Way too many 'what ifs' to say much more... can foresee lots of problems/issued though!

There are no guarantees the price will rise in however many years.

Jx

picklepick

Sounds a litte messy. A simplistic view, discounting any 'mess' from gf paying rent, etc. But this is how I would work it out...When you sell, work out the percentage increase or decrease in the houses value, and apply that to your investment.

So if you paid 50k deposit and the house's value has increased by 100% you get 100k back. (highly unlikely)