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Original poster

Partner buying 25% of house - contributions

8 replies

Densol57 · 30/07/2023 13:36

I own a house worth 1 mil. Mortgage £250k

Me and long term partner decided he would sell his house £500k ( no mortgage) and he would buy in 25% of my house. On completion, the solicitor would pay off the mortgage.
So I would own 750k and him 250k - on the deeds as non equal shares - mortgage free. Who dies first allows second to live in house till death then house sold and goes to our own beneficiaries. All good.

Utility bills to be split 50/50 as consumables etc

BUT …… my question. I will save £1739 a month on my mortgage. If partner put his £250k in savings - he’d earn 5-6% at the moment.
I receive a substantial income a month ( pensions, net rental incomes etc ) - £10k net a month.

He receives state pension and private - so about £ 1,500 plus part time work £1,000 plus will get interest on the other £250k - £1,000 month so £3,500 before tax.

As Im saving on my mortgage payment - should I give him some money for his £250k or is his money now 1) providing him a home and 2) will benefit from house price increases.

I cant decide what is fair and Im going round and round in circles - can you help ?

OP posts:
FlippityFlippityFlop · 30/07/2023 13:38

No - his 250k is providing him with a home just as the 750k is providing you with a home

MrSand · 30/07/2023 13:38

Don't pay him anything. You don't get any income on the 750k share of the house you own, and he doesn't get anything on the 250k he will own.

Whataretheodds · 30/07/2023 13:45

As above. It's his choice to invest his £250k in the house.

OneRingToRuleThemAll · 30/07/2023 13:53

He's living in a £1m home for the rest of his life for £250k. He's getting an amazing deal.

AnSolas · 30/07/2023 14:12

Nope

It is 2 transactions rolled into 1
Say you have a 750k house plus an asset for 250k plus owe the bank 250k
Your DP has 250k cash

You owe the bank 250K
Dp gives you a loan of 250K
You pay off the bank

You sell the asset for 250k to a stranger
You repay DP the 250k

Do you owe the stranger money just because you dont have a loan any more?

You repayed DP the 250k what is owed there?

Plus you have a contract on who lives in the property once one of you die, who pays for the minimim upkeep if that person can not or if that person is moved to a carehome and still alive.

Bramblehedge · 30/07/2023 20:18

Why isn't he putting the whole £500k in? Then it's equal and fair. I can understand if he didn't have that much to invest but he does, so surely he should buy in 50%? Unless you'd rather keep a larger share of course, in which case as someone else said he's benefiting and you shouldn't pay him anything.

Original poster
Densol57 · 31/07/2023 15:22

Bramblehedge · 30/07/2023 20:18

Why isn't he putting the whole £500k in? Then it's equal and fair. I can understand if he didn't have that much to invest but he does, so surely he should buy in 50%? Unless you'd rather keep a larger share of course, in which case as someone else said he's benefiting and you shouldn't pay him anything.

No I definitely only want to part with 25% …..I think 🤣
something to think about 👍🏼

OP posts:
Greentree1 · 31/07/2023 15:29

You've been paying the interest on his 25% for however long you've had the mortgage, for me he would have to at least pay back all the interest you've paid as well as the capital before he deserves a share of any savings. But no don't pay him any of the savings, it was his choice to buy in and you've both agreed the terms.

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