Buying ex partner out of mortgage / house

Thrugelmir

CloudCuckooLand wrote: »

Then take £50k from your parents as a deposit on a place you can more readily afford. Say 3x income. Don't over-extend. On a repayment basis.

Sensible suggestion in my view.

evoke

guidarufino wrote: »

So let's say the valuation is accurate and we'd get £215,000 for it.

Current redemption figure is £127,000 which means we'd be left with £88,000 - estate agent fee of 1% = £85,850.

So how would we divide that between us?

Didn't he put in £80K+ and you put in £10K as deposits? I guess whatever you'd be left with would go to him! You'd end up with nothing.

I think you're starting off from a no-win situation. I feel for you but I think financially, you're in a bad situation.

guidarufino

He put in £85k, I put in £10k. Surely the balance should be divided between us somehow. I'm not suggesting 50/50 obviously, perhaps a percentage deal of some kind. So if our total deposit between us was £95k, then he gets a percentage of that as do I? So he'd get approx 90% and I'd get 10%, right?!

UltraViolet

Split the loss equally, you went in as a partnership and you you would have split any profit equally too.

£95K joint deposit, £85850 return gives a loss of £9150
So you both lose £4575

He gets £80425 and you get £5425

If you paid 57% of the mortgage he potentially owes you £560 based on £8000 mortgage payments, but it was something you had agreed to when living together.

guidarufino

Well whoever said this was going to be messy was spot on! He isn't even speaking to me at the moment which on the one hand is great but on the other hand could make negotiations difficult!

I think what I'm going to do is put three offers on the table to him.

1. Offer him £85k (maybe less) to buy him out.
2. Offer to pay the mortgage if he moves out and rents until we can get a decent price for the house. I would draw some kind of legal agreement up for this so we were clear about money and other arrangements. I could get a lodger so would be no worse off than I am now except I get to stay in my house without him in it!
3. Suggest that we drastically drop the price on the house and see if it sells that way.

I have a feeling he'll say no to all three however! :eek:
And I can't force any of the above solutions. Yes I can force a sale but having looked into it yesterday, it would be expensive, stressful and would probably put buyers off so not ideal. I guess if he refuses to play ball on any of the above, I just have to live with that but our agreement to not bring people back to the house will be reviewed... Not to be spiteful but I don't want to put my life on hold forever...

nomoneytoday

guidarufino wrote: »

So let's say the valuation is accurate and we'd get £215,000 for it.

Current redemption figure is £127,000 which means we'd be left with £88,000 - estate agent fee of 1% = £85,850.

Don't forget the solicitor bills, moving costs, and any bills owing have to come out of the £85850

I would then divide any proceeds left using an 8.5 to 1 ratio.
As the house has depreciated, how can he expect all of his deposit back?

getmore4less

If you had any agreement when you bought that should be used.
(most peole do these wrong anyway even with solcitors)

To do an equitable split based on real contributions.

You need to determine who owns what at purchase time.

Purchse £230k What were the costs who paid those?

Ignoring purchse costs for now you can add these in below.
£85k + £10k deposits so £135k mortgage debt.

How was he mortgage debt split? I will use 60:40 since that is what you hinted at. if you did overpayments as well as split the regular payment that may complicate things. (as will the contributions to any capital improvments)

Anyway on the basics

You own £10k+(£135*0.6) + %of costs
He owns £85k+(135k*0.4) + % of costs

so that is 91:139 or 39.555% 60.445%

If you now agree a price of say £215 you have £85k he has £130 based on those shares, you then pay off the part of the debt you own

Take off his 40% of the outstanding(£125k) mortgage £50k.

So you need to pay him £80k to buy out is share of the house.

Adjust for costs of buying as they were actualy paid, any selling costs should be considered but not the ful amount only part of them(IMO).


If joint tennets then you shold own 50:50 but can still slit the debt based on how you paid. this would reduce his payout a lot and IMO is not fare.

Ginger_ninja_2

I've been in a simialr situation recently and I can promise you, no matter how loevely your house is, it soons become pretty irrelevant when you're paying a massive mortgage and can't afford to enjoy life.

guidarufino

Well it's probably all a moot point now as not only has he said he won't accept £85k, he wants £95k!!! He's generously reduced that to £90k but apparently no less. So even if I could afford to give him that much and even if I was crazy enough to take that big a gamble, it's irrelevant now. Even though I've shown him the valuation which shows we've lost £15k on the purchase price, he still wants to walk away with more than he put in, go figure! :eek:

And he refuses to drop the price too. The estate agent called today to suggest we drop the price. I'm quite happy to reduce it by £10k for a start off to see if that helps at all but he's not prepared to do that either. :mad:

And he's not prepared to move out and rent elsewhere with me covering the current mortgage until such a time as we can't get a decent price as he doesn't trust me apparently. Despite the fact that it's obviously not possible for me to remove him from the deeds without his permission, regardless of whether he lives here or not, he says he's not shifting. I offered to get a deed of covenant or whatever they're called drawn up but that won't do either.

So he won't reduce the price to sell, he won't move out and rent elsewhere and he won't accept my offer to buy him out...

Anyone else got any ideas?!!!

Thrugelmir

Refuse to pay your share of the mortgage. My focus his mind.