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But any profit made from the refurbishment after costs would be equity,so yes you are asking for a share.
You just need to work out what percentage of that share you want after all expenses have been paid and Parents in law have been repaid their deposit etc.
if you've only owned the house a few years I would be surprised if there were much left after everyone takes their cut.in S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
2017-32 2018 -33 2019 -21 2020 -5 2021 -4 20220 -
Of course unless there's paperwork supporting the idea that the £40k deposit was a loan to him, and should be excluded from the Tenancy In Common figures, I think he'd struggle to argue you don't get a share of that too.0
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It looks straightforward to an outsider - ie the house gets valued as both "before" the work and "after" the work and you are due for 50% of the difference between the "before" and "after" value (which may or may not be a noticeable amount of "added value").
Then deduct from your 50% that you paid £40 less than him towards the bills and Council Tax each month. So £20 per month x the number of months involved to be deducted from that "50% of increased house value because of the work done on it".
You will not have had to pay rent for the period of time you were living in his house - so you've saved money in that respect.0 -
@ mitstm
The only trouble with that calculation is what if the "profit" is less than the spend? The OP still needs an equitable way of dividing it.
Eg say you and I do up a house and you put in £80k and I put in £20k while we're living there and doing that. We split up after you find out my hideous secret, but the house has only gone up £60k. In that instance it would be unfair to split it £30k each and then deem that I've put in £60k less than you because then I'd get nothing and you'd get everything, even though you didn't contribute everything.
The fairer way would be to say you get 80% of £60k and I get 20%, i.e. we split the proceeds in line with our shares of what it cost to get there.
The same would apply if there were £160k to divide rather than £60k.0 -
I don't think he is screwing you over at all. In fact it sounds you had it pretty easy financially during your time together. Do you know the value of the property after the renovations?0
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westernpromise wrote: »@ mitstm
The only trouble with that calculation is what if the "profit" is less than the spend? The OP still needs an equitable way of dividing it.
Eg say you and I do up a house and you put in £80k and I put in £20k while we're living there and doing that. We split up after you find out my hideous secret, but the house has only gone up £60k. In that instance it would be unfair to split it £30k each and then deem that I've put in £60k less than you because then I'd get nothing and you'd get everything, even though you didn't contribute everything.
The fairer way would be to say you get 80% of £60k and I get 20%, i.e. we split the proceeds in line with our shares of what it cost to get there.
The same would apply if there were £160k to divide rather than £60k.
In most of the country the house wouldnt have gone down in value to what it was originally thankfully.
If the house is worth less/still worth less despite the money spent on it - then we're into a bit of a different ballgame at that point and one would have to work things out differently (but based on similar principles to those assumed from house staying same value or going up in value as expected).0 -
Yes sorry if I've confused here but I do NOT want a share of the equity. All I was querying was whether I am entitled to a share of the money made from renovating the house since we purchased it.
Ah I see, so by the initial quote, he only meant to pay you back the exact same amount you put into the "joint" account sued for the renovations.We both put savings into a joint account which we used to do up the house over the last 2 years (as we bought it to do it up). Now that we have split up (2 and half years later) he wants to buy me out and said that I am only entitled to the savings that I put away over the last 2 and half years because I only paid the bills, he doesn't think I should I get anymore as bills aren't contributing to the mortgage.
In which case you have a claim on portion of the increased value attributed to said renovations. The tricky bit is how much are we talking about, I don't think it will be financially viable to go to court for couple of £1000's if your ex refuses to budge. If we are talking about £10k+ and add the potential claim to more of the equity based on your name on the title deed etc. It will likely be financially viable to go to court for this.
Either way, IMHO it won't be worth it emotionally. Consider yourself lucky to have lived rent free for 2.5 years and move on.0 -
Paying bills in this scenario, where you are joint owners, is no different to paying the mortgage. You paying the bills freed up his funds to pay the mortgage, it's no different than if you'd been paying £140 towards the mortgage and he'd used his money for bills instead.
Legally, you might be entitled to up to half the equity - it would be up to him to show that despite the joint ownership, you and he both intended your share to be less. The fact you didn't have a declaration of trust to safeguard his parents gift for him contradicts that.
Ethically, you may be on rockier ground.
How much has the house increased in value by? How much did you each put in to cover costs of the work?All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
Cant have your cake and eat it you have been able to save because of the input by your partner surely getting back savings is a bonus .Like op have said where could you live for £140 I think your being greedy...0
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