Tenants in Common - percentage share of property calculation

philipo51617

Hi

Just wondering if someone could help with calculation to decide share in equity for tenants in common.

Partners mortgage is coming to an end in April and we have agreed to go as tenants in common.

Partner bought property in April 2021 for £275k (£78k deposit put down; with £197 mortgage)  

In May 2022, i officially moved in and started paying towards 50% of mortgage.  We had house valued at the time for £300k....though believe it is now £330k as of Feb 23.

When we re-mortgage it will be for £160k, as i am paying £30k lump some to take it down from the £190k that would be remaining from my partners term.

We have contributed to a number of home improvements:
Me £30k
Partner: £7k

Going forward we will pay 50% each of £160k mortgage that will remain.

Can someone provide the working out that we would use for equity share, taking into account equity that partner equated before i started contributing, and also taking into account our contribution to home improvements.

IF any other figures are needed, just let me know.

Cheers 

tripled

Currently your partner has £140k equity in a £330k house, which is roughly 42%.

You want to pay off £30k, that's about 9%.

That leaves around 49% which will be mortgaged and will be split between you (24.5% each), giving you a split of pretty much bang on 2/3 (67%) for your partner and 1/3 (33%) for you.

The past is the past and you're likely to be "entitled" to little, if anything. Market movements could account for the majority of the change in value. The only thing really quantifiable is the mortgage balance reduction of £7k (£3.5k each), which is barely more than 1% in your favour.

But if your parter was very generous, perhaps they would agree to take into account some of your historic investment in the property. It sounds like the house has only gone up 30k while you've spent £37k between you, so you'll have to write off about 20% of that, leaving approximately £24k/£5.6k, a difference of a little under £19k. That would give you up to just under another 6%, being generous.

So somewhere between 67:33 and 60:40.

philipo51617

Thanks, think i got it around 65:35 when tried utilising  a couple of methods i found online.