Splitting up - ex boyfirend buying me out

1984ReturnsForReal_2

#11


At last someone sensible.....

A number of the other posters are going to do nothing but put it in the hands of solicitors....

Let alone delay it at the cost of what the experts are calling a drop in prices in the early part of 2010...

poppysarah

If the property has been valued as is, what's the work needed for?

DVardysShadow

zzzLazyDaisy wrote: »

There are no estate agents fees, as the property is not going to be sold through the estate agent.

This one is always a difficult one to grasp, but if we were advising Boyfriend here, we would be suggesting that he does not forget them.

The reason is 2 fold:

1984ReturnsForReal wrote: »

There will be if this doesnt go ahead.

In other words, OP should not necessarily profit from the fact that BF is taking it on. If half notional EA fees are taken from OP's share, she will be no worse off than if it was an EA disposal

Secondly, BF will be stuck with an estate agent disposal later, and the half of notional EA fees by which he is better out of the deal can be regarded as OP's contribution to the ultimate disposal. Essentially the argument is that the cost of disposal is embedded in the equity

zzzLazyDaisy

There is a fundamental flaw in that argument.

The purpose of bf buying OP out is presumably to allow them both to go their separate ways. This leaves OP having to find a new home while he stays put.

If she buys, not only will she subsequently have costs of disposal should she later decide to sell (just as he will) but she also has the solicitors fees, stamp duty and other incidentals of finding somewhere new to live, while he has none of these costs. Even if she decides to rent she will have a deposit and month's rent up front, which will presumably come out of her share of the equity.

So it seems to be that to factor in a notional cost for the subsequent sale of the flat at some future date of the BF's own choosing, but not to factor in OP's essential and immediate costs associated with moving out is rather unbalanced.

DVardysShadow

zzzLazyDaisy wrote: »

There is a fundamental flaw in that argument.

The purpose of bf buying OP out is presumably to allow them both to go their separate ways. This leaves OP having to find a new home while he stays put.

The other way of looking at it, which arrives at the same conclusion is that they could consider selling on the open market, which might raise a certain price. If BF buys out OP and no EA fees are paid, BF should buy at a discount equal to selling fees, because [assuming the agreed price is fair in an open market] OP gets the same equity as an open market sale.

Certainly if BF offers a discount, there will be the same notional money to divvy up as the conveyancer would have handed over after the EA bill was paid with an open market sale.

Personally, I reckon OP would be better off these days to take a good offer based on EA valuations and forgo the EA fee, rather than put the property to the open market and let the market do its thing and still have to pay the EA fee.

DVardysShadow

christmasjones wrote: »

In addition to this my ex boyfriend has calculated a number of items that he feels should also be taken away from the equity of the flat:

- Estate agents fees
- Solicitors fees
- Cost of doing up the flat
- Cost of doing up the garden

I understand that if we were to sell the flat we would need to pay the above costs in order to sell and get the flat ready for sale and then just split between us any pofit left after the sale.

On EA and solicitor fees I agree with him, as explained in my other posts. But when it comes to cost of doing up, I don't think it is necessarily good to go down that route, because this gives him scope to claim all manner of possibly spurious expense to knock down your equity.

I think you should reject those 2 items and you should base the buy out on the condition of the property now - which reduces the equity but also eliminates the debate about the value of the works to be done.

Radiantsoul

How much are all these costs? As other have said solicitors are expensive. Also presumably for every month you delay you are paying half the mortgage.
I would suggest that you agree to the solicitors and estate agents notional fees, but not the costs of doing the place up - unless it is a relatively small sum of money.

mmikailian

This happened with my BF expected he paid for the flat by himself for two years the interest rates and prices of house dropped and his ex reappeared and guess what she wanted to buy him out for £10,000 now that was unfair......£2000 later on solictors fees and it got sorted but we had to prove he was the only one paying for it all service charges mortgage everything.... had it valued and she still did not want to play ball...hence the solictor fees... but we call her bluff agreed the amount he would be willing to give her and she was willing to give him and then charge her 1/2 all the payments he made over that time period he ended up with over 3 times the amount she wanted to pay but she still go the flat she wanted and he got his name out of the property all happy .....

They amount was split down the middle as she made him advertise it so cost of HIPS where split and cost of transfer halved and mortgage and service charges....this told a total of a year to sort out as she kept messing about ie breaking in changing locks all sorts.....

if you can please sit down and talk about it do not give it to the solictors etc, make sure you contact bank and pay directly from your account so no arguing about who paid what....

PS i would not pay towards the cost of doing up it was valued at its current condition.

Hope this helps?

TighterThanTwoCoatsOfPain

everyone seems to have forgotten that if it goes on sale at the average of 3 estate agents valuations, by the time you have bartered with a purchaser, the sale price would be even less (by more than the agents cost i would wager)..

I would be biting their hand off to rid myself of the house so easily..

Blacksheep1979

As some have said I'd be willing to come down a little here for the following reasons:

- EA price estimates are usually not what you realise and can be anything up to 20% above what you finally sell the house for especially if someone was to get a survey done and find damp/roof issues etc and negotiate downwards

- You're not incurring all the additional expenses of a 'real' sale (including below)

- Whilst someone has said that if the equity is 100k and fees would be 10k of this your partner selling to you for £45k would benefit him with equity of £55k isn't really accurate as when he comes to sell he still has to pay the 10k fees bringing him in line with your £45k

His points about doing up the place aren't really valid as the property would be worth more (as others have said) - come in low at first, offer say a 1/3 of what the EA fees would be off your equity and you each split the legal costs.