Breaking up....Who gets what?

Stuspillz

Hi, my girlfriend and i have split up,
The mortgage is £132k
The property is worth £125k(at last valuation,about 18months ago)
I orginally paid £7k deposit
My partner paid the solicitors fees and about £1k towards the deposit

We want it to be as simple as possible but dont know where to begin, obviously we are going to have debt as the property isnt worth what we paid 3years ago.

Any Advice would be appriciated! Thanks Stu

getmore4less

In the absence of an agreement the fare way to do it is as follows.

You work out your shares as follows adjust the numbers for real ones.

£132k Mortgage (shared in some way assume 50:50 use original mortgage if higher)
£7k deposit yours.
£2k estimate of fees + 1k others.


£141 your share is £66k+£7k others £66k+£2k

you own 51.773% other 48.227%

You split the proceeds after costs in this proportion.

Then take off the shares of the mortgage.

eg.you sell for £120k after costs

you get £62127.60-£66k = -3872.40
other £5872.40 - £66k = -8127.60


If there are other capital injections the calcs start to get very complicated if not a 50:50 split.

Fire_Fox

If the flat was valued at £125K eighteen months ago, it's probably worth less now. Look at sold prices (not for sale prices) of other flats in the block or nearby streets. Bear in mind you have selling costs to consider, estate agents and solicitors fees.

pinkshoes

She owes you half your £7k deposit.

You owe her half the fees and half her £1k deposit

You sell the property, and split the negative equity (debt) 50/50

Any furniture you can either sell, or divide equally. Don't forget second hand furniture isn't worth a lot...

Stuspillz

Thanks guys, a neighbour of mine almost sold for £116k 3months ago but pulled out, with hearing prices are back on the up i hope its worth a bit more.

As another option im thinking of keeping the mortgage on my own or with a friend, is this complex?

LandyAndy

stuspillz wrote: »

thanks guys, a neighbour of mine almost sold for £116k 3months ago but pulled out, with hearing prices are back on the up i hope its worth a bit more.

As another option im thinking of keeping the mortgage on my own fine and relatively simple if you can raise the financeor with a friend don't do this. It is, essentially, what you got you into this mess., is this complex?

. . .

Stuspillz

Would the mortgage company allow me to have it solo though? I could afford it just, but having a friend in would help. Even if it was just rent as a lodger, it is going to help.

silvercar

Stuspillz wrote: »

Would the mortgage company allow me to have it solo though? I could afford it just, but having a friend in would help. Even if it was just rent as a lodger, it is going to help.

Unlikely unless the total mortgage is less than say 3.5 x your income. Lenders don't generally consider income from lodgers.

Stuspillz

My yearly income x 3.5 isnt £132k more like £70k, so the only way to keep the mortgage is to involve another person like a friend. Its not worth selling at the moment so i need to keep paying it.

Thanks for all your comments guys!

mlz1413

My opinion on spliting is:
Sale price - fees = say £120,000
mortgage owed 132,000
so £12,000 owed to lender

You paid in £7000
g/f paid in £3000 (?)

So you owe £6000 to lender and £1500 to g/f
g/f owes £6000 to lender and £3500 to you
or you pay lender £4000 and g/f £8000


If neither of you can afford this then you can look at replacing one name on mortgage with another, but have the conversion about how to split proceeds / losses in the future before going ahead with this.

You could rent out and hope the market recovers but this could take some time.

Otherwise could you and g/f agree one lives in flat and the other does not contribute whilst not living there? Agreements on mortgage payments, bills, repairs if a lodger is allowed, if new partners are allowed etc need discussing as you are both jointly liable for mortgage.

poppysarah

You both have to share a sense of bitterness and frustration and distress. Although some more than others :-)

Get the place valued and write it all down and talk it through.