An air b n b one

[Crocsandshocks]

Help me solve an argument. Who is bu?

Man and woman jointly purchased a house 5 years ago. Man paid £125000 deposit. Woman took out a mortgage for the remaining £125000.

Woman therefore pays 560 per month on the mortgage. Man pays electric bills and council tax.

Man decided to convert double garage in the garden to an air b n b. It cost man approx 18k. Man has said that once he recoups the 18k woman can have half the monthly income from the air b n b.

However woman thinks she should have half the profits from the start seeing as she is paying the mortgage on the overall property.

Who is bu here? Any legal or money experts that can advise?.

I am the woman, by the way.

Yes they are hix children. No we are not married.

I'm with the man. He gets his £18k back before the profits are split. You want your share now, give him £9k.

Inertia · Today 13:50

You (together with the mortgage company ) company already owned a half share of the garage, and half share of the section of garden which has been cordoned off. So your partner has unilaterally taken part of your property to run a business.

I reckon the business should be paying you rental on your half- share of the garage/garden. This should happen irrespective of profit, because the business is set up now on property you jointly own.

Yes this is what I am trying to get him to see. But he can't (or won't).

Also dont forget I'm paying interest on the mortgage payments so I'm paying a lot more than the £125,000 he originally has.

That's irrelevant. That's your debt. It makes no difference to the value of the house.

Yes this is what I am trying to get him to see. But he can't (or won't).

But you seem to be ignoring the large number of people reminding you that he has paid an extra £18k. This last comment of yours makes you seem even more grabby. Once the 18k is paid off you will benefit both in rental income and in property value. I'd shut up if I was you.

And while you're complaining about paying interest on your mortgage repayments don't forget he isn't getting interest on the money he put into the house - unless it has gone up in value on which case you both get a return on your investment.

Ignoring {mention:zonder}s@zonders@zonders@zonderslittle passive aggressive outburst (who tells someone to shut up on a forum because they don't agree with them).

Imagine if someone decided to set up camp in your garage. You weren't keen but it happened anyway can no longer use it. New strangers appear every couple of days. They ask you random things. It gets on your tits. But everyone is telling you you're lucky because after 5 years you might get something out of it. That's kind of how it feels!

And air b n b rules in 5 years may change anyway. So the income 5 years down the line is not guaranteed.

There is no profit to split until the man has recouped his £18,000

There is no profit to split until the man has recouped his £18,000

From your post, it sounds as if you have separate finances.

if you're doing the cleaning/washing/prep of the airbnb, you get the cleaning fee, he keeps the rental.
He does the cleaning & prep, or employs someone else to - he should keep all the airbnb income.
He is currently paying all the bills and council tax, it's reasonable that he recoups the £18k investment in converting.
Sounds generous that it will be shared 50:50, and you will benefit from the increase in house value.

Alternatively, you "borrow" £9k from him, and agree a repayment schedule - at the moment, he is bearing the risk of how quickly it will pay for itself though.

Was this not discusssed before the conversion, or did you just assume you'd be given half?

Alternatively, you "borrow" £9k from him, and agree a repayment schedule - at the moment, he is bearing the risk of how quickly it will pay for itself though.

But this doesn't take into account I own half the garage which he didn't but off me before proceeding. Its like someone setting a clothes shop up in a town, but not paying the property owner any rent until 5 years down the line when the shop is making a profit.

No I think he's been fair. He's giving you half once he's recouped his outlay. If you'd paid half the cost of conversion then you would be getting half the rent now. But you didn't. So why should you be in profit when he's in loss?

The mortgage and everything else is irrelevant.

*buy

If he hadn’t paid 125k deposit your mortgage would have been much higher. So you already gained on that front.

Also dont forget I'm paying interest on the mortgage payments so I'm paying a lot more than the £125,000 he originally has.

That was, presumably, your choice to fund it with money you don’t have. Nothing to do with him.

If the DCs are joint then this is a bizarre way to be living.
Surely by this stage everything should be joint ?

I think he's being mean, because he's taken your shared garage for himself, essentially, and now your property (bike) is being damaged as a result and you're being hassled by strangers to help sort them out so he can make make money.

I'm with

As an aside, has your mortgage lender consented to any structural work done to the garage or consented to you having air B and B lodgers?

This isn't a money issue, it's a communication issue

He isn't making a profit on this, so I don't know why you think you should. If you were to receive half of the AirBnB rent, you would just be giving it to him anyway to cover your half of the 18k invested. That doesn't make sense to do.

He buys you a shed or gazebo to protect the shed.
He gives you 10% of current income from airbnb for inconvenience/lack of access to amenities.
This goes up to 50% once he has his outlay back or if you want it now, he ringfences his 18k if you split plus whatever value it added to house (you need an evaluation now and preferably one from before).

It’s a really bloody odd set up!
But if we want to ignore that…
I’d say that you owned half the garage (albeit mortgaged) so therefore he should rent your half from you. That doesn’t mean 50/50 profit on the AirBnB, because he put up the £18K to start the business. So he still takes 100% profit but the profit comes after the repayment of rent to you.
What the rent should be… well that’s entirely dependent on what you feel it’s worth to you. Your loss of amenity from it - including the garden.
Once the AirBnB business has repaid the £18K to him, I think you can still logically say that it’s his business - so you still get the rent, not a share in the profit. Which might actually be less to you.

Then, on top of the rent - you should be charging him by the hour for any work you’re doing for the business, e.g. if you take phone calls about it, or let people in, you should charge per hour. I’d refuse to get involved in running it - those charges should be only for unavoidable things. For example - laundry after guests, his problem. But knocking to use your washing machine and he is out - you can’t really ignore, so you should charge him for the interruption. I’d also be really bloody clear what guests can and can’t do. So I wouldn’t be letting them use the washing machine at all!

OP already jointly owns the garage and garden though.

his choice to spend 18k on renovations for a business but he’s running that business in property that is jointly owned.