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    • buttonbeany
    • By buttonbeany 12th Jun 17, 12:14 PM
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    buttonbeany
    Unmarried (ex)couple home equity division
    • #1
    • 12th Jun 17, 12:14 PM
    Unmarried (ex)couple home equity division 12th Jun 17 at 12:14 PM
    Hi, just wondered if someone can give me an up to date advice please, as I'm finding a lot of conflicting information online. I have recently split from my partner. We own a house together as joint tenants with a joint mortgage (but no pre marriage agreement - stupidly). I am still living in the house with our 3 children and am their main carer and have paid the mortgage for the last year. As far as I understand, I'm entitled to live in the house until either my youngest is 18 or I marry/someone else moves in. However we have both agreed I'd like to buy the house from us essentially - I have been approved for a mortgage, but the issue is in dividing the equity. He put down the initial deposit of £25000 which was money from his parents and grandparents which he wants back (and they want him to have back), and then half the equity remaining after that. My dad is insisting that the equity should be split down the middle, regardless of who paid the deposit. I see the logic in both sides BUT I have no idea where I stand. Is there any legal rule in this kind of case? I'd obviously rather not have to go to court because of the amount of stress and then the tensions this would cause with his family. Any advice appreciated!
Page 1
    • Mojisola
    • By Mojisola 12th Jun 17, 12:29 PM
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    Mojisola
    • #2
    • 12th Jun 17, 12:29 PM
    • #2
    • 12th Jun 17, 12:29 PM
    He put down the initial deposit of £25000 which was money from his parents and grandparents which he wants back (and they want him to have back), and then half the equity remaining after that.

    My dad is insisting that the equity should be split down the middle, regardless of who paid the deposit.
    Originally posted by buttonbeany
    And if you had put down the £25k deposit, would your Dad still be insisting that you shared the equity 50/50 with your ex?

    Be fair - give him his money back!
    • aneary
    • By aneary 12th Jun 17, 12:41 PM
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    aneary
    • #3
    • 12th Jun 17, 12:41 PM
    • #3
    • 12th Jun 17, 12:41 PM
    How long ago did he put the deposit down? How is he planning on supporting your children?
    • getmore4less
    • By getmore4less 12th Jun 17, 12:42 PM
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    getmore4less
    • #4
    • 12th Jun 17, 12:42 PM
    • #4
    • 12th Jun 17, 12:42 PM
    He should get the equity that the initial £25k bought,

    If you have had the house a while that could be significantly more than £25k

    how much did you pay how much is it worth now what's left of the mortgage

    can do all three scenario and see how big the differences are.


    where was your dad when the deposit was needed?
    • TrickyDicky101
    • By TrickyDicky101 12th Jun 17, 12:42 PM
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    TrickyDicky101
    • #5
    • 12th Jun 17, 12:42 PM
    • #5
    • 12th Jun 17, 12:42 PM
    Will you qualify for a mortgage solely on your own? Do you work or are you relying on maintenance payments (from ex-partner)? When did you buy the house? Approximately how much is the house worth and how much is the outstanding mortgage balance?
    • AnotherJoe
    • By AnotherJoe 12th Jun 17, 1:03 PM
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    AnotherJoe
    • #6
    • 12th Jun 17, 1:03 PM
    • #6
    • 12th Jun 17, 1:03 PM
    Yes, if your dad had given the £25k as a deposit would he be wanting not just that back, but its proportion as a value of the house at the time, e.g. Let's say it was 10% of the house price, presumably he'd be wanting back not £25k but 10% of the value of the house now, e.g. If the house is now worth £500k he'd be wanting £50k back plus 50% of the remaining equity ?

    So if your ex only wants the £25k back plus 50% equity I'd say you are lucky amd tell your dad to butt out before ex wises up.
    • kingstreet
    • By kingstreet 12th Jun 17, 2:33 PM
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    kingstreet
    • #7
    • 12th Jun 17, 2:33 PM
    • #7
    • 12th Jun 17, 2:33 PM
    Your former partner has a responsibility to keep a roof over his kids' heads.

    This may not mean he has to allow you to remain in the current property without paying him out, but it may mean he has to put some money into your housing arrangements he may not get back until later.

    Get legal advice.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • buttonbeany
    • By buttonbeany 12th Jun 17, 2:40 PM
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    buttonbeany
    • #8
    • 12th Jun 17, 2:40 PM
    • #8
    • 12th Jun 17, 2:40 PM
    Thanks everyone for the replies.


    It's a tricky one, as the personal circumstances were that he had to leave, he is an addict and was too dangerous to live with the kids... so I think my Dad is just going into protective father mode as it all feels unfair! As you say, I'm not sure how he'd feel if it was reversed. His parents gave us the deposit at the time, and my dad did give some too but we used it for furniture and legal expenses/stamp duty. We bought the house in 2014 for 229. It is now valued at 260, and mortgage remaining is 152. The initial deposit was 25 and also 20% from the government scheme. Yep, I work and have been approved for a mortgage so that part isn't a problem. He isn't paying me any maintenance (but I think he's not obliged to as we're not married) but he does pay child maintenance. Oh, what a nightmare!!


    That aside though, I did feel in my heart that he should have the 25000 back plus half equity (I had not actually thought about the increase in value of the deposit if I'm honest, but good point!) so thanks for the other thoughts.
    • aneary
    • By aneary 12th Jun 17, 3:08 PM
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    aneary
    • #9
    • 12th Jun 17, 3:08 PM
    • #9
    • 12th Jun 17, 3:08 PM
    If he's an addict is he safe with the money?
    • buttonbeany
    • By buttonbeany 12th Jun 17, 8:54 PM
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    buttonbeany
    I think it would be his parents keeping it safe for him hopefully 😕
    • Pixie5740
    • By Pixie5740 12th Jun 17, 8:59 PM
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    Pixie5740
    The legal position is a 50/50 split. If you want to give him back all his parents gifted him then it gets a bit murkier. Why is their gift considered the deposit and your father's gift considered SDLT and legal fees?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Number75
    • By Number75 12th Jun 17, 11:17 PM
    • 178 Posts
    • 192 Thanks
    Number75
    You need legal advice because you don't know your rights.

    You are not married so not you don't have a right to house your children there until they're 18. Sounds like you're confusing yourself with a Mesher Order - that's for married couples divorcing, and even that is only an option not a right.

    Strictly speaking, legally - you say you're joint tenants - so it's 50/50 and that includes his deposit. The time for him to protect that was 2014. There is a reason he didn't - I.e. As a couple you decided everything was joint.

    He can certainly try to make a legal case that it was always intended to be a gift from his parents only to him, but as there'll be no record of that (?) and you have 3 children, and your father put in money too, and you have paid the mortgage alone for a year, I expect his argument would be quite weak.

    Morally, there's a lot for you to consider. Did you reduce your actual earnings, future earning potential (and long term, pension) to be main carer for the children? If so, £25K is a drop in the ocean and even with it you probably come out worse. Is he going to pay maintenance for his children? I note that you've been paying the mortgage, not him, of late. These aren't legal points, put practical ones.

    Legally, I'd say - joint tenants, the deposit is joint.

    Morally I'd say this is also correct - you both chose to throw your lot in together as a single unit, money from parents, you being main carer - you will have both lost and gained financially from different decisions made as a couple.

    If you choose for personal reasons to give him some of the deposit back, first allow for your father's contribution, also your recent mortgage contributions, also any other factors affecting your joint finances - like if you had to reduce your hours.
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