Tenant in Common

ChrisLaurent

Hi

So my partner and I did buy a house together as tenant in common.

The house cost: 217,000£
The mortgage: 185K
The deposit put forward ( in full by her) : 31K
We pay back the monthly mortgage 50:50
So our share are 57% her and 43% me.

In case of a sale:

My partner profit = ( profit * 57% )+ deposit

or

My partner profit = ( profit * 57% )

I hope it s clear

Thanks

ellie27

ChrisLaurent wrote: »

Hi

So my partner and I did buy a house together as tenant in common.

The house cost: 217,000£
The mortgage: 185K
The deposit put forward ( in full by her) : 31K
We pay back the monthly mortgage 50:50
So our share are 57% her and 43% me.

In case of a sale:

My partner profit = ( profit * 57% )+ deposit

or

My partner profit = ( profit * 57% )

I hope it s clear

Thanks

What if the house sells for less than you paid?

TrickyDicky101

What does the Deed of Trust you and your girlfriend presumably signed when you purchased the property state? That should set out how it works. In the absence of anything to the contrary, I would expect your second formula (ie Profit *57%) to apply.

ChrisLaurent

We are lucky as the last valuation was at 320K.

The deed of trust say she would get her deposit back + her share

Which doesn't make sense to me but I want to be sure before talking

about it with her

Bennifred

I would say that your partner should get her deposit back PLUS 50% of the profit. That is what she has paid in, after all. :cool:

So she would get £31k and then 50% of whatever else you get for the property.

ChrisLaurent

Agree with that she should get back
Deposit + 50%

ellie27

Yes, I agree, your partner should get the deposit back first, and then 50% of what any profits would be.

macca1974

My tuppence worth

I'd would have thought that 57% / 43% split is fair (of the profit). The bit you contributed to (ie the mortgage) was 86% of the purchase price so you should get 43% of the profit from the bit you have contributed to and then she gets 43% as well (ie her share of the mortgaged part) and her 14% plus the growth back on that as well.

Of course it will depend on what the trust deed says.