Splitting tenants in common proceeds

Rammig

I have a declaration of trust in place with my ex partner for a property I moved out of in 2010 but she has continued to live there. She is now looking to sell the property so has now contacted me so this can happen.
She originally paid £100k into the property and we then got an interest only mortgage for £80k which we paid equally along with all other costs for the time I was living there. The trust document stated that costs should be split 50/50 but my question is once I moved out I no longer paid any costs as I wasn’t benefiting from the use of the house and I had new costs to incur for my next property, so should I have 50% of the costs she’s incurred since I’ve moved out taken away from my 50% share of the house (after her original £100k deduction)?

mrschaucer

Has she been paying you any rent since 2010? If she hasn't been paying you rent, and you haven't been paying any mortgage, perhaps that might cancel things out?

AnotherJoe

Rammig wrote: »

I have a declaration of trust in place with my ex partner for a property I moved out of in 2010 but she has continued to live there. She is now looking to sell the property so has now contacted me so this can happen.
She originally paid £100k into the property and we then got an interest only mortgage for £80k which we paid equally along with all other costs for the time I was living there. The trust document stated that costs should be split 50/50 but my question is once I moved out I no longer paid any costs as I wasn’t benefiting from the use of the house and I had new costs to incur for my next property, so should I have 50% of the costs she’s incurred since I’ve moved out taken away from my 50% share of the house (after her original £100k deduction)?

Alternatively, shes been paying a whole mortgage for a house too big for her and you've been paying rent (and ignoring the trust document that said costs would be split 50/50) and possibly wishing to take half the house price appreciation since you moved out, so the two cancel.



Maybe if she had a lodger or a friend with benefits thats not the case. Did she?

Rammig

No I’ve been paid no rent by her

Rammig

No she lives there with 2 children who aren’t mine

Tom99

What does the DOT say about how the net sale proceeds are to be split?

Rammig

50/50 after her getting back her £100k

Tom99

[FONT=Verdana, sans-serif]I think it will really depend how the figures work out and if that seems fair.[/FONT]

[FONT=Verdana, sans-serif]Method 1 - If you try and stick as closely as possible to the deed of trust then you getting the net sale price, less £100k, less 50% of costs you did not pay since 2010, seems fair enough.[/FONT]

[FONT=Verdana, sans-serif]Method 2 - Another fair way of looking at it would be that you were buying 22% of the house using your half of the interest only mortgage (40/180) and should get 22% of the increase in house price from when you bought it until 2010 when you stopped financing 22% of the house altogether.[/FONT]
[FONT=Verdana, sans-serif]
[/FONT][FONT=Verdana, sans-serif]Lets say you bought it in 2005 for £180k and after sale costs it sells for £270k in 2018, a 50% increase over 13 yrs.[/FONT]

[FONT=Verdana, sans-serif]So the increase over the 5 yrs you were financing 22% would be 5/13*(270-180)= £35k[/FONT]

[FONT=Verdana, sans-serif]Of which you are entitled to 22% so £35K*22%= £7,700[/FONT]