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    ComputerUser
    what are her rights? advice following relationship split - joint mortgage holders
    • #1
    • 16th Feb 09, 8:30 PM
    what are her rights? advice following relationship split - joint mortgage holders 16th Feb 09 at 8:30 PM
    My daughter has just split up from her boyfriend of 5 years. They have been living together for 3.5 - 4 years. They are both joint mortgage holders on their property which they bought 18 months ago. They put down a large deposit to purchase the property - he put down 70% of the deposit, she 30% . They have paid the mortgage and all bills and maintenance / improvements on the house 50/50. The boyfriend now wants to buy her out but does not want to sell the property at this time. due to the current economic climate we are quite certain that the house has de-valued since it was purchased and their mortgage is now more than what they first borrowed. the boyfriend wants the property re-valueing and is then prepared to pay her 30% of the equity (minus the mortgage). This will be significantly less than she originally put into the property. he intends to keep the property and have her name taken off the mortgage and will only re-sell the property once the market has picked up. he hopes to afford the mortgage on his own although i am uncertain if he can afford it. what is the maximum mortgage available to someone on 35k? they presently owe 125k

    they have a deed of trust from their solicitor from when they bought the property - this states the percentages and amounts put in by both parties but only discusses what will happen if they split up and sell the property. it does not say what will happen if one wishes to buy the other out. what rights does my daughter have? and if she agrees to him buying her out, will she have to bear the current loss of value to the house even though it is not being sold? Is she entitled to take out the same amount of money she put in?

    Also the boyfriend claims that money already put into the house for house alarm, loft insulation, decking etc is now part of the property and despite my daughter paying for half she is not entitled to any money back for these things. is he right?

    lastly they both paid 50/50 for a planning application to extend the property. this is due to come through in a few months. if planning permission is granted this will be valid for 3 years. if the boyfriend sells the property within these 3 years surely it will add to the value of the house? and she will have lost out. any thoughts on this?

    i'd be grateful for any help
    thanks!
Page 1
  • pennyjar56
    • #2
    • 16th Feb 09, 8:39 PM
    • #2
    • 16th Feb 09, 8:39 PM
    She definately needs a solicitor's advice, as I recall when something similar happened to me my solictor siad that if there were no children involved if it went to court they would probably order the property sold and monies divided as per court decision. If children are involved it's a different situation totally.

    whatever happens it's always a pretty horrible situation, at least they have some pre agreement re how much each put in etc.
  • Psychofly
    • #3
    • 16th Feb 09, 8:59 PM
    • #3
    • 16th Feb 09, 8:59 PM
    I think technically it IS being sold. As far as I'm aware legally speaking it doesn't matter who's buying the house, even if it's your daughter. She's buying if from herself and the ex. She can make any offer she likes for the house and accept it but the ex doesn't need to agree to the offer.
    I also don't think it matters who has spent what on the house, bar the deed of trust, the rest I don't think there is any legal ruling for. What me and my ex did in the same situation was sold the house and split the profit and we both walked away. If your daughter wants to buy him out then I'd say get it valued , get a settlement figure on the mortgage take the difference and your daughter owes him 70% of that. Of course if he doesn't accept this then I don't think there is anything you can do from a legal stance. If it comes to it and they can't agree then they'll have to sell to someone else.

    My friend was in the same situation a few years ago and they got 4 valuations explaining that they wanted a 'fixed price' value not an 'offers offer' style one. They took the average and she bought him out based on those values.

    I wish her luck though, I've been there and I know it's not nice.
  • getmore4less
    • #4
    • 16th Feb 09, 9:33 PM
    • #4
    • 16th Feb 09, 9:33 PM
    If they have been paying the costs 50:50 then at the time they bought the shares were

    Hers ((total cost - mortgage)* 0.3 + mortgage*0.5))/total
    His ((total cost - mortgage)* 0.7 + mortgage*0.5))/total

    Work out a selling cost less expences and then split by these % above and take of 50% of the outstanding mortgage.

    Thats what is due.
    if the deposit was 50% she owns 40%(25+15)
    if the deposit was 10% she owns 48%(45+3)

    If they set up a doc then that should be along those lines if not then that probably will apply.


    It is possible to protect/benifit from future planning permissions but this is very hard to get right, best to get a cash settlement now.

    In a falling market avoid being greedy quick clean break has value.
    Last edited by getmore4less; 17-02-2009 at 2:55 PM. Reason: fix the calcs for the 10% deposit.
  • Robert_Sterling
    • #5
    • 16th Feb 09, 9:57 PM
    • #5
    • 16th Feb 09, 9:57 PM
    The boy friend can say "This is what I think I should pay you to give up your share in the house? This is how I arrived at my figure. What do you think? Can you let me know within about a week or so."

    Your daughter can then think about the offer. Consult anyone she likes. ( MSE posters perhaps ).

    She might then reply. "In principle I am not opposed to the idea that you should buy the property. " I think that you should pay X more than your previous offer. These are my reasons for saying this."

    Negotiate. Negotiate. Negotiate.

    If she cannot get as much as she could if the house was sold to someone else then she might decide that the house should be put on the open market.
    ...............................I have put my clock back....... Kcolc ym
  • felby1
    • #6
    • 14th Oct 09, 10:16 AM
    • #6
    • 14th Oct 09, 10:16 AM
    Help!! i am in a similar situation Me and my partner are splitting up and bought a house 6months ago for 90000 in joint names. we put down a 14000 deposit, 5000 gifted from my partners dad, 3000 from me and 5000 from my boyfriend. My boyfriend is saying he doesnt want to sell the house and would prefer me to buy him out which i am more than happy to do so, he is asking for 17000 to be bought out. I had the house valued last week at 100000. Surely he is only entitled to 50/50. He has also threatened to hurt me and my family if we even try and give him less than 17000. I do not understand where this figure has come from. I have offered 12000 but for this him and his parents say they are going to make sure me and my family are hurt and that he will make me pay up. I really need some advice as I am considering walking away with nothing as i am scared of what he will do.
  • Bufger
    • #7
    • 14th Oct 09, 10:21 AM
    • #7
    • 14th Oct 09, 10:21 AM
    Help!! i am in a similar situation Me and my partner are splitting up and bought a house 6months ago for 90000 in joint names. we put down a 14000 deposit, 5000 gifted from my partners dad, 3000 from me and 5000 from my boyfriend. My boyfriend is saying he doesnt want to sell the house and would prefer me to buy him out which i am more than happy to do so, he is asking for 17000 to be bought out. I had the house valued last week at 100000. Surely he is only entitled to 50/50. He has also threatened to hurt me and my family if we even try and give him less than 17000. I do not understand where this figure has come from. I have offered 12000 but for this him and his parents say they are going to make sure me and my family are hurt and that he will make me pay up. I really need some advice as I am considering walking away with nothing as i am scared of what he will do.
    Originally posted by felby1
    If physical threats are taking place i hardly think an internet forum is the place to seek advice. Go to the police and get a solicitor, they will both advise you and you wont have to have direct contact with him or his family anymore.
    MFW - 115,216 (128,000 @ 5.99%)
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  • jamief
    • #8
    • 14th Oct 09, 10:56 AM
    • #8
    • 14th Oct 09, 10:56 AM
    Help!! i am in a similar situation Me and my partner are splitting up and bought a house 6months ago for 90000 in joint names. we put down a 14000 deposit, 5000 gifted from my partners dad, 3000 from me and 5000 from my boyfriend. My boyfriend is saying he doesnt want to sell the house and would prefer me to buy him out which i am more than happy to do so, he is asking for 17000 to be bought out. I had the house valued last week at 100000. Surely he is only entitled to 50/50. He has also threatened to hurt me and my family if we even try and give him less than 17000. I do not understand where this figure has come from. I have offered 12000 but for this him and his parents say they are going to make sure me and my family are hurt and that he will make me pay up. I really need some advice as I am considering walking away with nothing as i am scared of what he will do.
    Originally posted by felby1
    Contact a solicitor AND the police right away.

  • Salvargio
    • #9
    • 14th Oct 09, 1:49 PM
    • #9
    • 14th Oct 09, 1:49 PM
    My partner is in a simular situation where her and her ex have a joint mortgage and he wants to sell, he no longer lives in the property and she along with their two year old son are and living on benifits.

    If they were to sell at the moment there would be a debt of just over 20,000.00

    would she have to pay any of this or would he be entitled to pay the entire sum?

    notes to mention: he contributes nothing towards his son and he moved out on his own accord
  • Caz3121
    My partner is in a simular situation where her and her ex have a joint mortgage and he wants to sell, he no longer lives in the property and she along with their two year old son are and living on benifits.

    If they were to sell at the moment there would be a debt of just over 20,000.00

    would she have to pay any of this or would he be entitled to pay the entire sum?

    notes to mention: he contributes nothing towards his son and he moved out on his own accord
    Originally posted by Salvargio
    If it was a joint mortgage they are both responsible to repay the mortgage, they would need to check with the mortgage provider as they are likely to want to know how they intend to pay them the shortfall
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