Scottish Law Questions? Ask a Scots Lawyer
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What agreement (if any) was made at the time of the purchase?
Under the law of Scotland this would be treated as a business partnership. The house is the main asset of the business. The income is the income of the bed and breakfast and the liabilities are the running costs, including the mortgage. That is the argument I would present to your friend. He can't have it both ways. Either he buys you out based on the value of the house with no deductions or the income from the bed and breakfast has to be taken account of along with the mortgage payments. It would be unfair that you have to contribute to an expense in connection with the property but not get the benefit of the income. That is called the doctrine of unjust enrichment and can apply where there is no contract regulating the ownership of the property. So the starting point is that the title is owned equally and that you are entitled to one half equity. If other factors such as the mortgage are to be taken into account then all relevant factors have to be taken into account and that includes the rents he has received in respect of a property that you own half of. I hope that helps. Happy to discuss further. In the meantime please leave a positive feedback so that I am credited for my time.