Buying out with tenants in common agreement but no deed of trust

Lconrad

Hi, I am in need of some advice RE a property which is owned with my ex partner. She would like to buy me out of the property and has the financial means to do so. We have a tenants in common agreement - which I have a signed copy of - dictating a 40/60 split (hers is 60) in the property but we do not have a deed of trust. 

When calculating the original shares, she did the calculations based on an equal split of the mortgage but unequal splits of deposit and renovation costs and therefore would make a loss if the equity is split 40/60. 

Therefore, she wants to arrange the buy out according to how we originally calculated the split rather than the 40/60 split of equity in the tenants in common agreement. 

What I wanted to know is 1) Does the tenancy in common agreement dictate that whoever buys the other out has to buy out specifically their share of the "equity" or can it be based on a different value? and 2) Is there any way around the tenancy in common agreement if there is evidence that the shares do not reflect the actual value of our initial investments?

Thanks

Brie

I think you can negotiate any price you like.  Does the amount she suggest seem fair to you?  If not make a counter offer.  If you can't agree get solicitors involved and then both of you will be out of pocket.  

Lconrad

Just for arguments sake if we are not able to agree on a price then would there be a way around the shares dictated in the tenants in common agreement if there is evidence that they are not a fair reflection of our initial investments?

I think we will end up coming to an agreement as I'd imagine that solicitor fees could become very high in the event we get into a protracted disagreement.

propertyrental

As you drew up an agreement, then if things went 'legal' thst's almost certainly what solicitors/a courtnwould look at.

What's the point of a written agreement if itn can be changed/ignored at will.

But yes, you can ignore it and agree something else, provided you both agree.

Albermarle

Lconrad said:

Just for arguments sake if we are not able to agree on a price then would there be a way around the shares dictated in the tenants in common agreement if there is evidence that they are not a fair reflection of our initial investments?

I think we will end up coming to an agreement as I'd imagine that solicitor fees could become very high in the event we get into a protracted disagreement.

AFAIK, a judge ( if it came to that )will not be that interested in the minutiae of who paid what and when .