My brother and I share a mortgage on a 3 bed terraced house. I now live there on my own as he is on a work placement and has no plans to live in the house in the future. he currently pays 1/4 of the mortgage and i pay everything else including council tax, bills etc. He says its my responsibility to get a lodger to help with the bills but I want to live on my own. How much mortgage should he pay bearing in mind he has %50 share in the property.
2007-02-15 22:20:09 · 12 answers · asked by vini44 1 in Business & Finance ➔ Renting & Real Estate
This is an extremely sticky situation, but you must be strong about it. If he is not going to pay half of the mortgage, then he cannot really expect to get half of the proceeds when it is sold.
How long has he been paying a quarter of the mortgage?
From that date, I would see if there is a way of assessing the value of the house at that time. If he has ALWAYS paid a quarter, then this bit will be easy - it's the price you paid for the house! If you need assistance, you can go onto moneysupermarket, there is a link to a website that shows the values of houses if you type in the year and postcode and is based upon the average paid and past history of the house.
He can then be fairly entitled to a quarter of the profits from that time for as long as he continues to pay a quarter share..
The fact that you pay all the other bills is irrelevant in this case. You should - you are living there! These bills are shared between anyone living in the house and you want to live there alone by choice. Someone who is not there should not be responsible for these costs. You need to focus on the mortgage and the even split of that (That is if you both paid evenly for the mortgage in the first place)
I would buy him out.. you could get the house valued as of now, pay him his quarter share on the increase in value and then sit back and wait for the rewards. You are paying almost all of the mortgage now and I am sure that you could stretch for that other quarter if you really wanted to!
Best of luck...never go into business with friends or family!
2007-02-15 22:58:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In reality he should be paying 50% of the mortgage if he expects to get 50% of the profit. If he wants someone else to pay his 50% of the mortgage, then HE needs to find a lodger who will pay it. If he doesn't pay or get a lodger, then no way should he be entitled to ANY profit when you come to sell.
If you don't have any luck with that, I advise buying him out. Doesn't sound very fair at the moment, though do agree that you should be paying the council tax and bills seeing as you live there.
2007-02-16 06:25:28 · answer #2 · answered by Wafflebox 5 · 0⤊ 0⤋
You have to separate house ownership and your living costs. If your
brother has a 50% share, he must pay 50% of the mortgage & 50% of the repairs maintance. You must pay your own living expenses plus HALF the market rent to your brother. I think this is fair, you both contribute &
benefit equally on the house Hope this helps
ps you maybe better off not changing your current deal do the math?
2007-02-16 07:19:06 · answer #3 · answered by noitall 1 · 0⤊ 0⤋
50% of the mortgage though you will have to pay everything else though the council tax should be reduced by 25% as you live on your own. this depends on the level of time that he will not be there otherwise he should still pay 50% of the costs everythingelse apart from the maintenace of the property to keep it in the same state will be down to you. If he does not agree due to the length of time that he will be away then you will have no option but to seek legal advice.
2007-02-16 06:34:35 · answer #4 · answered by Lady Luck 1 · 0⤊ 0⤋
OK, so you and another party purchased a home. Inherent in that agreement is that the two of you would own and live in the home so long as both of you still wanted to own and live in the home. If one of you decides this agreement no longer works, then the agreement is over and you must either sell the home or enter into a new agreement.
So his current situation dictates the end of this agreement. He's being nice enough to not force sale of the home - which he could - but will allow you to stay if you pay the full carrying cost of the home. Essentially, you are paying your half and renting the other half from him.
If you want to live in the home alone, then you need to pay to live in the home alone. If you want to keep the home but not pay the full amount, then either you or he must find a tenant to share the home. And if you don't want to do either, then you need to sell the home and move on.
You are in no way entitled to having him pay so you can live alone. You know that already.
2007-02-16 06:38:21 · answer #5 · answered by CJKatl 4 · 0⤊ 1⤋
Why not treat it like an investment property that you rent out?
You pay rent, of say $600/month or whatever fair market rent is. Half goes to you, half to your brother. Then you each pay half the mortgage. When you sell, you each get half the profit.
Seems like the fairest way to account for the fact you have use of the house, and to split the profits eventually.
2007-02-16 09:13:26 · answer #6 · answered by Quixotic 3 · 0⤊ 0⤋
If you sold the house he would get 50% so he really should be paying 50% of the mortgage.
2007-02-16 06:29:19 · answer #7 · answered by pigletsam 3 · 0⤊ 0⤋
50%, if he wants the benefit of the property as a future investment then he should be prepared to put his money into it!
2007-02-17 07:41:44 · answer #8 · answered by JOANNE C 3 · 0⤊ 0⤋
if he wants to claim half the house when its time to be sold then he should pay half the morgage, regardless of whether you have a lodger or not
2007-02-16 06:26:07 · answer #9 · answered by angie 5 · 0⤊ 0⤋
50% No questions
2007-02-16 08:36:36 · answer #10 · answered by frankie b 5 · 0⤊ 0⤋