How much do I give my Partner for his share of the house?

jeri0118

My Partner and I bought a property about 2 years ago for £174,000 (taking out a mortgage of £155,000). We both spent about £5000 renovating it, but the main bulk of the work and investment was from my parents (as a gift to ME) and now it's worth £240,000. A 10% share of the value is mine (I put down the deposit).

So, my Partner has decided to leave me now, and wants 50% of the profit share of the house. However, my parents want about £10,000 of the profit too (for the work they put in). This would work out at my Partner getting £25,500. BUT, I can't see if this is very fair - he's only invested in 2 years worth of mortgage payments, and the return on his investment is going to be way higher than mine ever will be. Am I being unreasonable??

adr0ck

my understanding is that if both your names are on the deeds its 50/50 no matter who put what in

moneysavinmonkey

From my understanding you both bought a property for 2 years ago for £174k
you put down 10% as a deposit
for rennovations your boyfriend and you put in £5k each
+ your parents put in 10k

your boyfriend wants 50% of the 'profit'

so sell the house..
you get your 10% deposit back
your parents get their 10k back
you both get your 5k's back
anything left after paying off the mortgage is the 'profit'... so split that 50%


The only problem I see with that is how much your parent's contribution is as you don't say where the 10k figure comes from?? If they have given you 10k cash that is easy enough to sort out but if they are now trying to charge you for their time that hardly seems fair as presumably you or your boyfriend didn't choose to employ them!! If they gave their time freely but now want paying because things have turned sour that is tough luck.

jeri0118

Thanks! The deed of trust actually says 38/62 split (mine being the bigger half). But I already took off 10% in my calculation above. Wouldn't make much difference still.
So, the calculation MUST be based on what the deed says? (thinking he might try going down the legal route to try and get as much cash as he can)...

moneysavinmonkey

BTW to you + anyone reading this if you are going to buy a house with a boyfriend, particularly lif things are on an uneven footing financially you need to get a brief Tenants in Common Agreement drawn up as otherwise technically the house sale proceeds are split 50/50.

jeri0118

Whoops - forgot to say I don't want to sell the house - I'm remortgaging.

moneysavinmonkey

er yeah.. why didn't you mention the agreement in the first place!!!

He can't go back on that now - you aren't joint tenants you are tenants in common so tough doodies to him.

jeri0118

Thanks so much for all this advice btw. Looks more and more like I'm going to have to take out an additional £25,000+ out on the mortgage to pay him out. You learn from your mistakes hey!

jeri0118

Sorry, so what does that mean? That he only gets 38%? :-S

adr0ck

jeri0118 wrote: »

Sorry, so what does that mean? That he only gets 38%? :-S

yep

thats the split

my previous post was on their being no tenants in common thing

neverdespairgirl

jeri0118 wrote: »

Thanks! The deed of trust actually says 38/62 split (mine being the bigger half). But I already took off 10% in my calculation above. Wouldn't make much difference still.
So, the calculation MUST be based on what the deed says? (thinking he might try going down the legal route to try and get as much cash as he can)...

Glad to hear you have an agreement, saves a lot of hassle now.