My partner wants to buy half my house

Googler51

I bought my house 18 months ago. My partner moved in 6 months later. We have lived together for 12 months and shared the bills, but I have paid the small mortgage and he had rented out his bought house. No mortgage on his house. We are both in our 50s. Therefore he has made money from the rent of his house whilst living here.
He wants to buy half my house, which will then pay off the mortgage, at the original purchase price. I've paid over £5000 in mortgage payments and made improvements to it using the insurance money after it was flooded. As he has lived here for 12 months and helped with decorating, suffered as a result of the flooding etc. he feels it should be at the purchase price. I don't agree. What do you think?

davidmcn

Presumably you don't agree because you think the value is higher than it was when you bought it. Is it? How have you assessed that? "Paying over £5000 in mortgage payments" doesn't mean the value has changed.

Googler51

I also feel that he has made a profit by living here rent free, whilst earning extra income from the house he previously lived in. I will get it valued to check it out. I think it will have gone up at least £10,000 because of new kitchen, flooring, new flood doors etc. 

[Deleted User]

Googler51 said:

I also feel that he has made a profit by living here rent free, whilst earning extra income from the house he previously lived in. I will get it valued to check it out. I think it will have gone up at least £10,000 because of new kitchen, flooring, new flood doors etc. 

The value of a property doesn’t increase just because you’ve installed a new kitchen and flooring. To increase value you really need to add square footage.

If his rental property made a loss or needed an urgent repair would you be offering to stump up some cash? 

[Deleted User]

Not that any of this really matters. He thinks it should be at the purchase price and you don’t so you’ve reached a stalemate and what a bunch of internet strangers think is largely irrelevant. 

DairyQueen

I would love to buy the house I am currently purchasing at its value as at mid 2019. I would also love to have lived rent-free in the interim. Which planet is he living on?

I would expect 50% of the current market value plus he pays the full costs of purchasing. Of course, you may be out of pocket if the property has devalued since you bought it - perhaps because it has been flooded.

hazyjo

What if he'd had a different business venture other than a lettings business/becoming a landlord? I really don't see how that's relevant. Would you feel better if he had a massive mortgage he'd have had to pay on it?

I also doubt the works have added an awful lot of value. More sellable, maybe.

Personally, I think you'd be better off waiting a while and buying somewhere else together.

If you do go ahead, get an independent valuation (not estate agents) and he can pay half. The previous slate (that he seems unaware even existed) should be wiped clean.

Also forget your mortgage payments. Most of that will have been interest and certainly won't have reduced your mortgage by £5k.

mistrihelen

I would be more cautious than the others suggest. If he buys half his property, he owns 1.5 properties and you have .5, putting you into a worse situation. I would suggest he continues to enjoy the profits of his rental, and you continue to pay the mortage - unless you do need help paying it in which case you may need to consider. My view would be different if you were married.

gettingtheresometime

mistrihelen said:

I would be more cautious than the others suggest. If he buys half his property, he owns 1.5 properties and you have .5, putting you into a worse situation. I would suggest he continues to enjoy the profits of his rental, and you continue to pay the mortage - unless you do need help paying it in which case you may need to consider. My view would be different if you were married.

Exactly what I was thinking. 

Googler51

Thanks for your comments. The flood may well have affected the vue, but it is also nearly two years in a sought after village, so I will check the value. The house needs further renovation and we are creating a home together. Therefore, he wants to own the home he is going to invest his time, effort and money in. We need a new bathroom, drive, upstairs decorating in. I take the point that it would be different if we married. We are both in our 50s and me recently divorced, him twice, so not ready for that commitment. I can afford the mortgage and the renovations. My savings are small. It isn't very romantic discussing this, but that is life? We are very much in love. 

Googler51

*value on the second line