Tenants in common- want to change shares

buzzbuzz1

A bit complicated but here goes…

me and my partner have a declaration of trust whereby I own 75% and they own 25% of our house. We currently pay into our mortgage on those terms. 

However, my partner can now afford to pay 50:50 due to a wage increase. But I have no idea how we can do it fairly (ie. Just changing the declaration of trust means I would forgo the extra money I’ve been paying in for years…) 

is there a way that we can sell the house and take our respective shares  and then buy it back immediately, so that we could re-enter a mortgage agreement at 50:50? 

The only other thing I can think of is that they pay 75% for the next 7years or so, and then we make it 50:50. Or we just keep track of what extra they put in on a spreadsheet, which I could pay out of my 75% should things go awry and we end up selling (not expected but you never know!)

Anyone had a similar dilemma? I want it to be fair for both parties… who would be able to advise on such a matter?

Thanks in advance! 

PRAISETHESUN

Rather then thinking about percentages, could it be easier to divide up ownership such that on sale of the property you get £XXX, they get £YYY (based on the amounts each of you have contributed to the mortgage thus far), and then the reminder is split 50/50?

BikingBud

If the period of proposed flip, 7 years, indicates the current life of your relationship, at what point would you feel there is sufficient mutual commitment and it has become a permanent relationship to decide an equitable 50/50 split is correct?

Or do you feel that you can only accept that once they have contributed equally and you must achieve financial equity irrespective of broader commitments?

 

Mark_d

It won't be straightforward but maybe it doesn't matter.
I think it's probably not worth changing the arrangement now.  Your partner can continue owning and paying for 25% of the house whilst investing any extra earnings elsewhere.  When you eventually move, you can buy the new place together, equally.
When my partner moved in with me I was paying the entire mortgage and I owned all equity in the property.  When my partner started working, after graduating from university, we looked to move house in to a property that belonged equally to both of us.