Calculating split of property ownership - Please Help!

Mikeyorks

Boofer_Ise wrote: »

and Mikeyorks, yes we are both living at the property. Thanks for pointing out the CGT situation I'll need to look further into these implications...

There are no CGT implications if it is your joint principal residence. I only added that as it was a bit unclear from your original.

Strapped

Boofer_Ise wrote: »

rsykes2000, you are absolutely correct all the mortgage payments have been 50:50 including all fees, and Mikeyorks, yes we are both living at the property. Thanks for pointing out the CGT situation I'll need to look further into these implications...

Leon W, unfortunately I trusted this frend and therefore did not insist upon a Deed of Trust so the split is not written down on any formal legal document. I did though at the time of purchasing the property put together a spreadsheet of all the details relating to the purchase AND included the split calculation which we both went through and agreed to, and which is now disputed by this friend. This is why I am more inclined to view this as a case of deception rather than an honest mistake (or selective memory), although perhaps this friend (I think I'll use the term friend losely from now on!) is trying to see how far they can take this to maximise their return regardless...?

I think that any fair person can see that my view of the split is the more reasonable of the two so I'm going to dig my heels in on this.

I also think that the biggest lesson of all of this is to make sure that you cover yourself legally from the beginning. As pointed out disputes such as this can be avoided with a little effort up front!

If you own the house as Joint Tennants, then technically you each own 50%. Your friend should've insisted on a legal document spelling out the % ownership, tbh, as he is the one more likely to "lose" here.

I agree with your original assessment, btw. That's how we calculated the ownership %s for our house (I already owned a house, and the equity when I sold it was put down as a deposit for our house).

Leon_W

Don't cave in over this Boofer and be bullied into taking a smaller cut. I can't believe that anyone here would consider your "friends" view as in the slightest bit "fair". Every post here agrees with your opinion.

Strapped, above makes a very good point. If the property is owned on a joint tenancy basis then your "friend" has, quite possibly, more to lose than you by taking it further (ie:court)

At the end of the day, it will take both of your signatures to sell the property, and any "friend" that pulled a stunt like that on me I would consider not having to be honest.

Please keep us updated.

Boofer_Ise

Thanks everyone for the support.

I've drafted the letter now to this friend that summarises a lot of whats been said here with a suggestion on how we can proceed through this. To be on the safe side I'm going to get it checked over by a Solicitor just in case!

I'll let you know how things pan out...