Tenants in Common share calculator

getmore4less

thanks.

Remember, the mortgage is a financial product, it's separate to the home ownership. "Equity" is a useful concept, but it's just a concept.

This is something a lot of people have a problem with because it was a mortgage secured on the house they think you have to take the mortgage off before doing any sums.

if they paid cash(even different amounts) and borrowed the money somewhere else like off the bank of mum and dad I think most people get it. you get your share of the house and pay back your mum, it is no different with a mortgage lender.


Tom has used a different method where you split the shares into 3, 2 deposits and a mortgage and work with those you get the same answers and for some it may be a better way to explain it.

Rheys99

getmore4less wrote: »

thanks.

Remember, the mortgage is a financial product, it's separate to the home ownership. "Equity" is a useful concept, but it's just a concept.

This is something a lot of people have a problem with because it was a mortgage secured on the house they think you have to take the mortgage off before doing any sums.

if they paid cash(even different amounts) and borrowed the money somewhere else like off the bank of mum and dad I think most people get it. you get your share of the house and pay back your mum, it is no different with a mortgage lender.


Tom has used a different method where you split the shares into 3, 2 deposits and a mortgage and work with those you get the same answers and for some it may be a better way to explain it.

I think that's where I have been going wrong- I have been neglecting the fact it's a mortgage.

Thank you so much for all of this! I really do appreciate every post

getmore4less

ThePants999 wrote: »

Just to throw another thought out there - you could have the house, mortgage, maintenance and improvements all on a 50:50 split and separately agree that your friend owes you £17,500 Keeps things simple...

This really does have merit(it is the get your deposit back method)
but you need visibility of the time frame of getting the loan paid back

If the finances going forward can be done 50:50 it keeps it clean(until that goes wrong*).

The side loan comes from (£44k-9k)/2 = £17.5k.

does your friend only have £9k to put in or is that what you think they need to do to buy out the ex.

If they have more cash they could buy some of your share as well.

If they had £26,500 total they could buy in 50:50 at the start and forget the side loan.


* this is where you need to work through the can't pay, won't pay scenario which is not as complicated as it might sound.