If you own a home with someone else, you need to know exactly what percentage belongs to you. Knowing your share helps with taxes, selling, inheritance and everyday decisions. The good news is that the math is simple once you have the right numbers.
First, a clear percentage tells you how much profit you’ll get if the property sells. Second, lenders look at your ownership stake when approving a mortgage or a refinance. Third, if you and your co‑owner part ways, a fair split avoids arguments. Finally, a documented share makes estate planning smoother – your heirs know what they’re inheriting.
1. Gather the purchase details. Find the original sale price, any later improvements, and the amount of money each person contributed. If you bought the house together, your contributions might be equal or different.
2. Add up the total equity. Equity equals the current market value minus any outstanding mortgage. For example, if the house is worth £300,000 and the mortgage balance is £120,000, the equity is £180,000.
3. Determine each person’s cash input. Say you put in £30,000 and your partner put in £20,000. Add any extra cash you each added for renovations or loan repayments. In this case, total cash input is £50,000.
4. Calculate the ownership ratio. Divide each person’s cash input by the total cash input. Your share = £30,000 ÷ £50,000 = 0.60, or 60%. Your partner’s share = £20,000 ÷ £50,000 = 0.40, or 40%.
5. Adjust for mortgage contributions. If one person pays more of the monthly mortgage, you can add that amount to the cash input before calculating the ratio. This keeps the split fair over time.
6. Write it down. Put the final percentages in a written agreement or add them to the title deed. A simple document signed by both parties protects everyone if the relationship changes.
Here’s a quick formula you can use in a spreadsheet:
Ownership % = (Initial cash + ongoing mortgage payments + renovation costs) ÷ Total of all contributions
Plug in your numbers and you’ll see the exact split.
Remember, the calculation only reflects financial input. Legal ownership can differ if you chose a specific type of joint ownership, like "tenancy in common" or "joint tenancy". Those forms affect what happens when one owner dies or sells. Always check the legal title to confirm how the law views your share.
When you’re ready to sell, multiply the sale price (minus any selling costs) by your ownership percentage. That amount is what you’ll receive before any taxes or mortgage payoff.
Using these steps saves you time and prevents disputes. If you’re unsure about any part of the process, a quick chat with a solicitor or accountant can clear things up. The more transparent you are now, the smoother future transactions will be.
Bottom line: Grab your purchase records, run the numbers, and lock the results in writing. Knowing your exact share of ownership gives you confidence and protects your investment.
Learn simple, practical ways to calculate share of ownership using real examples, clear formulas, and handy tips. Master the numbers so you can make smart decisions.