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Are my calculations correct???

Treadway1
Posts: 826 Forumite


Hi folks, its been a while since posting here last but wondered if anyone could help me with my calculations for a mortgage issue I have regarding my bankrupt ex partner. Ill try to be as brief as possible....
Five years ago, my ex and I bought a house for £192,500 on a shared equity scheme. We took a mortgage for £122,500 and an shared equity loan of £70,000. This meant that at that time, the loan company had a 36.36% share of the house.
The loan was on a 3 year payment free period, during which time, obviously the loan companies interest in the property went up, and now stands at 38.646%.
As mentioned above, my ex has since gone bankrupt (after we split) and I have an opportunity to buy her half of the property from her OR. Im obviously hoping that my house in in neg. equity, so that I dont have to pay anything other than the admin costs, for her half of the property.
So this is where my question starts. My house has recently been valued at £186,000, and there is £115,298.32 left to pay on the mortgage. With that in mind are the following calculations correct...
38.646% of £186,000 = 71,881.56 (what the loan company would expect back with the house at this price), so then,
£115,298.32 (outstanding on mortgage) + 71,881.56 = £187,179.88
Therefore, my house would be £1,179.88 in neg. equity.
I know the calculations are mathematically correct, its more the method by which Im working the numbers out that Im sketchy on. Im just wondering if the loan company would want the near 39% of the original price of £192,500, or if Im right in thinking its the current price thats important.
Sorry if this doesnt make much sense, but Ive been confusing myself with this all day.
Id really appreciate any advice anyone can give. Thanks
Tredders
Five years ago, my ex and I bought a house for £192,500 on a shared equity scheme. We took a mortgage for £122,500 and an shared equity loan of £70,000. This meant that at that time, the loan company had a 36.36% share of the house.
The loan was on a 3 year payment free period, during which time, obviously the loan companies interest in the property went up, and now stands at 38.646%.
As mentioned above, my ex has since gone bankrupt (after we split) and I have an opportunity to buy her half of the property from her OR. Im obviously hoping that my house in in neg. equity, so that I dont have to pay anything other than the admin costs, for her half of the property.
So this is where my question starts. My house has recently been valued at £186,000, and there is £115,298.32 left to pay on the mortgage. With that in mind are the following calculations correct...
38.646% of £186,000 = 71,881.56 (what the loan company would expect back with the house at this price), so then,
£115,298.32 (outstanding on mortgage) + 71,881.56 = £187,179.88
Therefore, my house would be £1,179.88 in neg. equity.
I know the calculations are mathematically correct, its more the method by which Im working the numbers out that Im sketchy on. Im just wondering if the loan company would want the near 39% of the original price of £192,500, or if Im right in thinking its the current price thats important.
Sorry if this doesnt make much sense, but Ive been confusing myself with this all day.
Id really appreciate any advice anyone can give. Thanks
Tredders
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... I know the calculations are mathematically correct, its more the method by which Im working the numbers out that Im sketchy on. Im just wondering if the loan company would want the near 39% of the original price of £192,500, or if Im right in thinking its the current price thats important.
Sorry if this doesnt make much sense, but Ive been confusing myself with this all day.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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