Percentage share and lodger income

FrankCale

Hi first time poster, long time worrier,


My partner and I have separated (not married but have a DoT). They moved out in June. In July, I left my job as I felt my whole world was collapsing around me.


To help with income, I got in 2 lodgers (Mon-Fri) via AirBnB and SpareRoom. Both are here now until Jan and Feb, when they either extended, or move on. Now that I am back in a new job (end Nov 19), my partner is asking for half of that income moving forward!!! I have said no, as they are not the ones living with two strangers in the house, paying for the extra gas, electric and water they use, hasn't found the tenants, hasn't set up AirBnB etc and isn't the one making their beds each week and doing the extra laundry and housework!!!
My ex-partner is paying their half of the mortgage, until we agree a house valuation, so that I can buy them out. They are not paying any bills.
If they are entitled to something, I'm happy to work on that with them, but, I don't feel that they are. Also, the deposit for the property, was all made by me. If anything, I'd assume it could be done on a percentage of house owned, but, that still doesn't take into account the extra work I do in basically being a hotelier, and the fact I am living with strangers.


House price 400k
My deposit 100k
My overpayment to mortgage 5k
Mortgage remaining 255k
Current house value 430k (for arguments sake)


Has anyone any experience of this? If so, what are the options? I spoke to a 'free legal helpline' that we have with work, but it wasn't very helpful, only stating that there is no real legal precedent for this scenario. I don't want to cause arguments with my ex-partner, as we need to remain civil and sort the scenario in the New Year, but I will only pay a fair amount, if any is due. I certainly feel that they are not due anywhere near half.
Thank you

G_M

Your ex is a joint owner.
You ex is paying half the mortgage.
Your ex is not benefitting from living in the property.
Your ex is (presumably?) paying rent/other costs elsewhere.

Of course your ex is entitled to a share of any income the property produces. Or arguably all of it (other than running costs like utilities).

The quicker you sell this joint asset and saparate your finances the better. This is going to end badly.....

00ec25

FrankCale wrote: »

but I will only pay a fair amount, if any is due. I certainly feel that they are not due anywhere near half.

focus on this because yes they entitled to a share of the income being generated by the asset that they part own


you have a DoT, the respective ownership shares are set out in that


if you resist you may find they stop paying an equivalent value of the mortgage - which will of course seriously antagonise the position even further than it already is if the lender then chases you for any shortfall as you are the one still living there and thus the easier target


start with the DoT split and negotiate from there, given your other claims as the basis for having a higher share of the income

FrankCale

How do I figure out the percentage owned, from the figures above? That's what I'm happy to look at paying, minus any money for 'hassle' of looking after and living with lodgers and their increase costs on bills.

The DoT states that I get my 100k back in the event of a house sale. Surely, I must own 70 percent or so of the house, as they put in 0?

00ec25

FrankCale wrote: »

The DoT states that I get my 100k back in the event of a house sale. Surely, I must own 70 percent or so of the house, as they put in 0?

the DoT does not say anything of the sort

it simply appears to say you get a fixed sum of money.

that is not the same as saying you own x%. Yes it does mean you will get the money from the sale before she does, but only up to the amount of 1ook. How anything over that amount will be split is not covered by the wording you have posted on here so far

it could well be you do own 50/50, as I assume that is the basis of the mortgage after all. In which case the deposit is irrelevant in terms of a share of income from the asset, as the repayment of the deposit is a monetary amount taken from the sales proceeds before they are split, but does not alter the fact ownership may be 50/50.

you do not own the value of the deposit, you have a claim to that as money from the sale, not as underlying ownership on the info posted so far

FrankCale

Ah, okay thank you. That is what Im trying to get to the bottom of. How do we figure out who is entitled to what?

AdrianC

FrankCale wrote: »

How do we figure out who is entitled to what?

What does the DoT state?

If it says you get a fixed £100k, what does it say about the balance? 50/50? What's the house worth?

G_M

My feeling is that, assuming you own 50/50, then

* your ex should take from the lodger income an amount equal to a market rent for his (her?) accomodation. You are then in equal positions: you have a place to live (your home) in return for your mortgage payments and he/she also has a place to live (elsewhere) in return for his/her mortgage payments

* Any lodger income over and above that should be shared 50/50 (perhaps after a nominal deduction to allow for the small increase in bills resulting from having lodgers)


I agree with 00ec25r above: if I were your ex, and you were being unreasonable in my view regarding this income, I would reduce my mortgage payments.


And the disagreement would escalate from there........

paddyz

My thoughts are to do a spreadsheet noting all money’s received and all additional out goings then half the bottom line, that gives you a good amount of extra money for your work in doing this and reduces your ex partners contribution to the mortgage so enabling them not to have the biggest burden whilst living in other accommodation

And get this financial settlement sorted out ASAP

FrankCale

Thank you