What is fair? Splitting renovation costs

[Deleted User]

Just wanted some outsider perspective on our situation. 

I currently own a 2 bedroom flat with a mortgage. 
My partner inherited 50% of a flat when his mum passed away last year, which regardless of marriage in the future etc. I will never inherit as it's owned as joint tenants in common with his brother. 
We agreed, in order to be closer to his grandad who needs care assistance, we would move into his property.
Therefore, I need to sell my property. 

He was living in the flat before his mum passed away but it wasn't in great shape.
The kitchen was physically falling apart, mould on the walls, bathroom had a few leaks etc. 
He was happy enough to live in those conditions, but I didn't feel comfortable.
We spoke about it & agreed to do his flat up, with a low budget, so that it was nicer to live in & easier to rent out when we move on. 

Anyway... 

I am in the process of selling my flat, and even though I bought it 3 years ago, I managed to make a bit of equity on it. 
It's costing me £2,700.00 in EA fee's and £1,400.00 in solicitor fees, £450 in other fee's (EPC & Management pack costs). 

My partner has paid for most of the renovations so far, and we sat down to work out how much was owed and I owe him a further £1,250.00. 
I was ok with paying for the refurbishments up until he started noting down things like how much was spent on grout or a paintbrush and it's rubbed me up the wrong way a bit.

Because he hasn't thought about the fact that I'm paying for all these other fee's associated with the flat sale without his assistance. I did mention it delicately, but it went over his head... 

I'm probably going to just end up paying him the money to save the hassle, but do you think the way we agreed to do this is fair? 

DE_612183

so are you paying towards doing up a flat which is only 50% owned by your partner?
why isn't the brother contributing towards it?

I guess as you are partners now he sees the equity you have as "your shared money?"

TBagpuss

OK - yur partner and his brother either own the flat as tenants in common (in which case yourpartner owns a specifc share which he can will to you) or as joint tenants (in which case, if he died it would pass to his brother, in which cse he can 'sever the joint tenancy' at any time.

Why are you paying anything at all to the renovations if you are not going to have a share of the property? 

What is the arrangements with his brtoher - are you and he paying brother rent for his share of the proerty? Is brother contributing to the renovations and if not, why not? 

Would it be possible for you to use the money from the sale of your flat to buy out his brother, so that you and he can own the flat together? 

Would it be possible for ypu to keep yourflat and rent it out, (you would need consent to let from your lender, and to be clear about your legal obligations as a landlord, of course) 

Savvy_Sue

Clearly, 'delicate' isn't going to cut it. 

Best to get it off your chest before it starts to rankle ... 

TBagpuss

Just to add, if you are contributingto th flat then make sure that yor partner severs the joint tenancy so that he owns his share and can leave it by will, then get a decalaration of trust frawn up to reflect your interest in the flat, if you are contributing.

Altnertaively, if you are contributing to make it a nicer place to live, but are no going to be paying any rent or equaivalent, then have a firm agreement about that and also consider whether he was payingyou rent or the equavalent when the two of you were living in your flat. 

These's no single right answer but I think the two of you need to be a bit clearer about hwat the agreement is and what you are going to fo moving forward. 

Why don't you and he get a joint mortgage to buy out his brother (and fund the rest of the renovations) and agree a declaration of trust that provided for each of you to get back your original contributiosn (e.g. if the flat was worth £150,000 his original contribution would be £75,000 (his inheritance) yours would be the dapital from your flat and the balanc would be split as you'd both be fnding the renovations and mortgage.

gwynlas

This all sounds a bit messy. Are you going to be living in the flat rent free and/or sharing bills? Are you as a couple going to be paying his brother rent on his half? Are you retaining your deposit money and equity from the sale of your property  minus selling fees? You might have incurred these fees anyway if you sold up to buy together.
It is quite probable that if he lived in the family home that he's never paid an equal contribution to the cost of running a home and becomng responsible for council tax, uutilities and other bills as knocked his previous level of disposable incme whereas you have been used to this.
If  nothing formally agreed than you need to have a serious conversation as otherwise you are paying to improve a property that you might not benefit from. On the otherhand  you and your boyfriend could be saving what you would have been paying in rent so that when the time comes you will have a larger deposit to buy your next home. Similarly who is providing care and support for his grandfather, he and his brother alone or are you included?

[Deleted User]

Sorry I always mix up tenants in common and the other one. It's the one where it definitely gets left to his brother. 
We would be paying half of the market rent to his brother, who is then passing it to his grandad so that the grandad can afford to live where he does. I'd be paying half of the half rent if that makes sense? 
I wouldn't be caring for the grandad, other than walking his dog.
The brother doesn't want to sell his half, I was ok with paying for the refurbishments because in my mind I would be making savings by having cheaper rent than what I am used to. But now I feel he has taken it too far, by being a stickler with the little figures.
I guess I should just be straight with him.

Spendless

I really don't see what you're getting out of this. You are selling your property to fund renovations on something you'll not benefit from.

I get that paying 1/4 rent is going to be cheaper than your mortgage but that's to own zilch at the end, unlike the property that's yours.

Personally I wouldn't be selling my property anyway. That would leave you  high and dry should you ever be in the circs where you can no longer live with your boyfriend. Look at renting your place out and tell your OH to pay for his own renovations. 

Mojisola

Deleted_User said:

Sorry I always mix up tenants in common and the other one. It's the one where it definitely gets left to his brother. 

This is easily changed so you can inherit from your partner. 
You are giving up your place on the property ladder to accommodate your partner's caring responsibilities and you are funding half the renovations of a property you don't own (down to the smallest item) while increasing its value for your partner's brother? 
Will you have a tenant's agreement with the brother?  Will he be complying with all the legal responsibilities of a landlord? 
If you are just informally giving a quarter of the market rent to your partner, you are just there as his partner - you will have no rights and could be made to leave at a moment's notice if he said so. 
I would also be very wary of the agreement that there is no expectation of you helping with care - it's easy to imagine a slow creep - when you go to get the dog, could you just do X for grandad; when you take the dog back, could you stay with grandad for a while because I'm running late and he'll be on his own?

HampshireH

I would not sell your flat.  It's not even sold and you're not on the same page about his place.

I worry you are going to be left homeless as if you are paying everything and resent it this relationship won't last.

I may have missed it but I didn't see how long you had been together.

You don't benefit fromt his arrangement at all but you do lose out quite significantly financially. I would be very wary. Once you sell could you actually afford to get back on the property ladder ?