Selling a house

Tonyr

My ex's partner's parents loaned me and my ex partner £10k ten years ago to buy a house together. My ex partner then left our home with our 2 children and moved in with the guy she was seeing behind my back in May 2009. I have since been paying the mortgage for this property since May, but she cited that she could have quite easily kicked me out of the home (both our children under 12) and move back in the home with the children, even though she was the one having the affair. Anyway the house is now up for sale, and we are splitting the profits, but she claims that her dad now wants £20k in return for loaning us the £10K ten years ago - i've a feeling that i'd be paying the £10k to him and she won't pay anything.. is this fair? This is what she wants...

280k is the current value of the house (in joint names)
minus £139k mortgage (in joint names)
minus £4700 redemption fee
minus £4100 estate agent fee (currently up for sale)
minus £900 sols fees (again up for sale)
minus £350 hip

divided by 2.

Then i have to pay her parents £10k.

Any flaws in this - I feel i've been and am still being conned.
Greatly appreciated
Tony

firstaspect

Unless there was any legal terms with the £10k loan from her Dad then I can't see how it could be increased in any way. To be honest it probably wouldn't have to be repaid at all unless you went through legal channels with the loan but by courtesy I'd say you pay him back the 10k before you split the equity in the house by 2.
It's not a lot of money but you haven't need a HIP for a few months.

Tonyr

Thanks for the quick reply. Yes, i'm thinking along the same lines - but everything else looks ok in terms of payments to her i presume?

neverdespairgirl

The £280k value might need looking at. It's not much over the £250k stamp duty threshold, so you might get offers up to and not above £250k.

firstaspect

Tonyr wrote: »

Thanks for the quick reply. Yes, i'm thinking along the same lines - but everything else looks ok in terms of payments to her i presume?

If she cheated on you and you've been the one paying the mortgage then she probably doesn't deserve as much but in the end it's likely to be easier if you just split it down the middle and cut all ties.

Tonyr

Was 320, then 295, now 280....gulp.

mark5

Pay him back the £5,000 your half of the £10,000 on completion of sale and make sure its done via your solicitor and not your ex-wife.

Tonyr

Yep good advice. She said her dad now wants £20k, with me paying £10k of it. Nothing in writing, it was a gift to her from her dad, so it's funny how its now manefested itself into me owing £10k to her dad with presumably her getting away scot free. Oh well, she don't know i know she was having an affair ...yet. If i'm honest i want to present her with my findings and tell her to poke her dads money.

gbcasual

Tell him to go whistle for 20K! That would mean a consistent 7.2% compound interest for the 10 years to get that, during which time the interest rates haven't been above 6% and for most have been a lot less.

If you wanted to pay him some more back then go for maybe 4% which would mean a 15K return, and that taken before you split the remaining equity.

Jowo_2

Seek legal advice on where you stand, both with the sale of the property and the repayment of the loan.

Some property sales by joint owners whose relationship has broken down become unstuck when disputes arise over the finances, or from emotional issues just to aggravate the other 'ex.

On this forum, there are many tales of buyers being stuck in the middle of warring owners who prevent the sale from going ahead for many factors. She could sabotage any proposed sale, blackmailing you to accept the inflated loan repayment 'I'm not selling the property until you agree to pay my dad back 20k..'.

And so could you, 'I'm withdrawing the property from sale and only paying my share of the mortgage until you agree that I pay your father back 5k plus interest on my share of the loan'.

Best get this resolved before any buyer comes onto the scene.

lincroft1710

Jowo wrote: »

She could sabotage any proposed sale, blackmailing you to accept the inflated loan repayment 'I'm not selling the property until you agree to pay my dad back 20k..'.

And so could you, 'I'm withdrawing the property from sale and only paying my share of the mortgage until you agree that I pay your father back 5k plus interest on my share of the loan'.

Which would be very silly for either of them as they will wait longer for their money and house prices in their area may be falling.

I do agree with your advice though.