Breaking up....Who gets what?

Stuspillz

I want to keep the flat now, so i know i should meet her in the middle, comprimise, but i cant bring myself to let her walk away with no debt and put myself potentially in a further £7000 debt.
Yes mortgage company will let us do that for a fee of £150, plus £400 sol fees.

tek-monkey

Stuspillz wrote: »

Shes still paying towards her half of the mortgage but she wants to take her name off, i want her to pay her half of the debt(as we are in negative equity, we had 3 vaulations average is £120,000) which is going to be £9000.

The option i gave her is pay me £7000 and come off and then i keep the flat and add my dad so i can keep it.

If the NE is £9000, why should she pay £7000? Unless you had something drawn up before buying, I don't believe you can use the difference in deposits against her now? Could be wrong though!

mlz1413

If you want to keep the flat until prices rise and you can break even or make a profit then you need to ensure you can afford to do so, even if it is 5 yrs time and when the mortgage is on SVR. Then you need to decided if she can walk away or pay less than £7k.

You didn't say if you would pay her to keep the flat or if both of you could raise funds to sell out.

Have you discussed renting it out for year and looking at prices after that? Not ideal and you would both need to be on speaking terms but maybe in a year emotions would be less raw.

ceebeeby

Seems nuts to me that you're looking at % splits relating to deposit, unless this was agreed at the time!! That seems really mean.

Basically, split the whole thing 50/50 down the middle and be done with it.

Stuspillz

Sorry guys if we sell for £120k the debt will be £12k.

If we sell and take 50/50 on the debt thats 9k each after fees

If we dont sell and she comes off the mortgage i want her to pay me half of the debt if we were to sell which would be £6k?

Anyway tonight she came back and told me her solicitor has laughed at me for even thinking im entitiled to anything.

I dont know what to do, i want the flat but i want to be safe, maybe im being greedy? But then she left me and initiated it so why should i suffer twice?

Thanks for all your input though guys i do appreciate it!

Stu

mlz1413

Stuspillz have you seen a solicitor as yet? I can see that you are not 'entitled' to anything, but I thought you were asking / offering a compromise.

IMO I'd walk away as long as both of you can fund the NE, it really does sound like your talking to a brick wall and that is not going to work long term.

Is the flat on the market yet? If not put it on at the price you need to clear mortgage and write to her saying its on at that price as you have not come to an agreement over how to fund the NE. Maybe the reality check of funding a sale will make her think further than moving out.

Also keep a record of how many payments towards the mortgage she is not paying. Although the mortgage co doesn't care who pays what it maybe a bargining tool in the future.

tek-monkey

Stuspillz wrote: »

Anyway tonight she came back and told me her solicitor has laughed at me for even thinking im entitiled to anything.

Then tell her she can have £6k if she takes the place on instead then?

Stuspillz

Im seeing someone on Monday, I think the comprimise is her not being in as much debt by only paying me £6k, maybe i should lower to make the offer more tempting.

Or just let her walk away with no debt and pay the solicitor fees and admin charges with the lender.

If it was in positive would i have to give her the share of equity by law?

Thanks Stu

Ulfar

Sorry but I am going to be the doom monger here.

You need to find out what the bank will allow before even thinking of coming to an agreement with your ex.

If the bank says no to removing her from the mortgage and adding your father, then it sounds like you will have to sell, unless you can pay for the whole mortgage yourself. In this case it will get very messy if at a later point you sell and property has increased in value as she will be entitled to half of the profit.

If she refuses to pay you anything and you refuse to let her out of her obligation this will also lead to you having to sell.

I know you want to retain your home but that may not be possible, whatever you need to do, you need to sort it out now with advice from a solicitor and your bank.

Do not whatever you do struggle on for some years paying for it all yourself then ending up having to sell with your ex still on the mortgage. In this scenario even if the property has stayed at it current price you will effectively lose half of the equity payments to your ex that you will have made in the interim, if the property has fallen further you will lose out more.

property.advert

If she paid in 50% of the costs, then she would get 50% of the equity, irrespective of the inequality of the deposit. Were it a much larger difference then yes, the different equity share could be established but not in this case.

Property worth - 120k
Estate agents fees - 3k
Legal fees and pack - 1k
Mortgage - 132k

Net position if you were to sell is -16k plus her paying half the bills from now until the property sells. If it takes a year at 120k and bills are £250 a month each, then she owes another 3k to the pot. At this point, her loss is -11k

To work out deposits, say she paid 2k and he paid 7k. She owes the pot another 5k.

So you have -16k +5k / 2 = -5.5k and her position is -16k-5k / 2 = -10.5k. She needs to pay you 10.5k to walk away. You then have to pay all the bills. If she does not pay immediately, then she owes you 50% of the monthly bills until it is sold or she does pay you.

As you would never get this mortgage on your own and as long as you can somehow pay the mortgage, the lender is going to gain nothing in asking you to crystallise the loss and sell up. This is beneficial to you in the long term. I'd be asking for 10k now for her to walk away or she is faced with rent elsewhere and bills on the property. My guess is that she doesn't have the money so you're realistically looking at her parents or taking her to court. Whatever you do, you will need some cast iron valuations so please, get the agents in.