Help with shared ownership spilt

SusieT

bodiddly80 said:

person A want 

sale of house, minus mortgage, minus deposits, minus 40k

surplus (247) divided 55/44

and then deposits returned.

That would actually give person A 66% of the house equity ? Surly that cant be correct ? regardless if the 40k is improvement or upkeep

That is double counting the deposits, you pay them at sale of house and then split the remainder, not take them out twice. 
So, sale of house - mortgage - minus 40k - deposits (that are returned to A&B)
Split remainder

bodiddly80

This is what I have said.

if you minus the mortgage and the deposits what is left would then be equity and then you divide that by the mortgage share 31/69 and then re add the deposits.

I think personally it would be much simpler to do sale - mortgage spilt 55/45 and then return some money back to person b for some of the works. 

bodiddly80

I really need help with this as Person A is now pressuring Person B for 160k.

The house has 247 equity in it and Person A is still saying she owes 55%. 

My understanding therefore would be

Sale price (360)- Mort (113) / 55% = 135.85 

This is without returning any funds for works. Person A would owe 22k which is 55% of the 40k spent.


As a compromise Person A said they would take 145k

They see this as Sale price (360)- Mort (113) - works (40) - Dep a (65) - Dep b (4) / 55% + Dep a (65)

that comes to just under 145k which is 58% of the equity (247)

Am I missing something here - because I fail to understand why 55% of the property gives you 58% of the equity 

bodiddly80

I understand that Person A wanted to protect their deposit after all in was an investment and I also understand why you want to see a return on not only your deposit but also the mortgage.

The sums of 65 (dep) + 35 (mort) is 100/ 182 = 55% 

In the early days just getting 55% of the equity would not have protected Person A's investment. So I understand deducting that first. BUT I can understand why they would still be entitled to 55% of the remaining equity.

Its feels it would be easier to break down each part increase that amount by the increase in the house value and then add that together to make a figure rather than using percentages.