Bigsmoke79
Registered User
- Messages
- 5
If I was paying rent to a private landlords probably about 400-450 a month
The mortgage interest monthly payment is £115.00
Ground Rent is £56 a year (£14 per quarter)
Rates £680.00 a year
OK, for the last three years, you have been doing very well?
You should have been paying around £5,000 a year.
But you have been paying around £2,200 a year ( £1,500 interest, £680 rates and £56 Ground rent)
So you "owe" him around £6,600 and he owes you £5,000.
So a fair balancing payment from you would be £1,600.
Brendan
He lived in it for about 1 year alone after
Yes, I had missed that.
There is no agreed formula. Usually it's two former partners who have contributed different amounts to the deposit and they are at each other's throats.
You seem to get on well with him, so I think that the above is a reasonable formula.
He might well have a different way of looking at it. But put the above to him and see what he says.
If he has "allowed" you to live there for 3 years with no adjustment for the cheap cost, he sounds like a reasonable guy.
Brendan
Another way to look at it is you have an investment producing 3k profit per year
Guaranteed for next 17 years.
Presuming this will increase over the years as rent goes up.
And property price likely to increase so there should be capital profit too
So 50k profit before you sell.
IdI say offer your friend 25k for the privilege of becoming sole owner.
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