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JGM, Solicitor
Category: Law
Satisfied Customers: 12069
Experience:  30 years as a practising solicitor.
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I bought a flat with my sister earlier this year in Scotland.

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I bought a flat with my sister earlier this year in Scotland. I earn significantly more than her but had no deposit on the other hand she had the deposit but not the salary to buy a flat so we bought together. I agreed to this under the impression from her that this would help us both out in the long term however neither of us has signed an agreement to say how this will be split when it's sold. I don't live in the city we bought the property and made it clear that as I was still paying my own rent that I'd be unable to contribute to the mortgage as its over double my current rent instead she got a flatmate in the second bedroom who's payments essentially cover my share of the mortgage. I didn't contribute to the stamp duty or fees, she works in the property legal sector herself and I'm led to believe she got a good deal on the fees and she said she would handle the stamp duty. She's also taken out a loan to improve the flat such as a new kitchen etc. She has mentioned several times that when the flat is sold I will get a nominal amount from the sale about £500. The verbal discussions we had we agreed to halve any profit after the everythings paid and she has her deposit back but there is nothing in writing. Where do I stand here? I'm happy to halve once her deposit and the loan for improvements has been paid to her but she's insistent I'll only receive £500. She acknowledges that without me she would have been unable to buy.

Thank you for your question. In the absence of agreement in writing the proceeds of any sale would follow the title, ie, an equal split. However it would be open to your sister to go to court and argue that she should get the higher proportion on the basis that all you did was lend your name to the mortgage application and that you have been unjustly enriched by benefiting from a property that you have contributed nothing to. Whilst this is a state able argument I don't think it is a strong one from the narrative you have given me. You are entitled to profit from the increase n value as joint title holder and your sister will also profit and get her deposit back.
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