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Mortgage and rental advice


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I've got a query and need a bit of advice please.

I am a joint owner of a flat with a friend (we have a joint mortgage) and we were both living in the flat. Everything from the beginning has been 50-50 with regards payments, bills etc and we have a will and contract to agree this. We also have a flat bank account where the mortgage and anything related to the flat goes out of.

She has now moved out and we are going to rent the vacant room and have differing opinions about how to deal with the mortgage and the rental income. I think that as we are joint owners she still needs to pay her share of the mortgage, and that the tenant should pay the rent into the house account as we are now joint landlords (one living in and one living out), so the rental income should be split 50-50, and therefore going into the flat account. Obviously the rent that we are charging the new tenant is more than what we each pay for the mortgage, but once we've accrued enough we can do an early repayment, so we both benefit. She disagrees and says that all the money should go to her and from that she'll pay the mortgage. In my mind this means that she is not personally contributing to the mortgage whereas I am, so when we eventually sell and pay off the mortgage (it was purchased for investment purposes) I would have paid more than her so how can she expect to get an equal 50-50 once we do that.

Any thoughts or suggestions on how to solve this or what the correct thing to do would be?

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There is never going to be an absolutely fair way of splitting the income & expenditure.

Every single way that either of you can think of dealing with it will have a counter argument.

In my opinion there are only 2 equitable ways of dealing with the situation.

1. Sell the property, split the money down the middle, both go your separate ways.

2. You move out, you jointly rent the whole property splitting income & expenditure 50:50.

Don't waste your time trying to agree aything else.....it will always be a problem.

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It could be argued that you match the rental payment of the new tenant so that the prop yield run at 100% as you are paying less than the other room generates.

If flat partner has left then she still pays her half of the mortgage by letting her room - the rest is arguably hers to do as she pleases ?

If you want to balance things out - move out and let your room then you can do the same - or argree to both pay more in, your option has P paying more than you - albeit that it is generated by a jointly owned property.

Having a partner;

1. think about it

2. sleep on it

3. think about it some more

4. sleep on it again

5. then do the right thing - FORGET IT !!

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