Negative Equity/Transfer of Equity, Advice needed!

Susieq_1985

Hi,

My partner and I are splitting up. We own a property jointly that we bought 2 years ago.

We didn't pay a deposit as it was a new build and its now in negative equity.

I want to take the property on myself and have started the process with the lender and this seems positive so far, I know that this could be difficult and isn't guaranteed yet.

As we didn't put a deposit down and the house is in negative equity, do I owe my ex partner anything?

He wants money out of his investment but the property has only lost money. We put in about 4k each at the beginning but this went in to furniture and curtains, savings etc (the savings we've split). Obviously the furniture etc isn't worth what it was but do I owe him for this?

Thanks!!

loubel

If the house has no equity then I can't see any justification for him wanting any money in return for you taking on that burden on your own.

Has he asked to take any of the furniture? Unless it's high value it would seem a bit petty to argue over it given that you are taking on his debt on the house.

CloudCuckooLand

You share the current loss, if you had to sell - see if he fancies paying half the shortfall...

As for furniture, you should share this according to the amount you put in.

Susieq_1985

Hi,

Thanks for the replies.

No, he doesn't want any of the furniture but no, there's nothing really of any value, especially second hand.

He's paid into the house for 2 years and wants to see something out of it but he knows there's no value in the house.

We'll have to agree over the furniture, I guess the best way to do it is put a current price on it and split the value equally? If a sale is forced, the furniture wouldn't be worth much!

getmore4less

If you are in negative eqquity then with the costs of selling he will have a big bill coming if you say stuff you we are selling.

What has he put in weel you rented some money for acouple of years and might have reduced the capital owing but your asset has lost money.

He needs a reality check, he is geting off lightly if you let him go without paying YOU.

If he winges about needing something out put it on the market untill he sees sense.

shortchanged_2

Susieq_1985 wrote: »

Hi,

Thanks for the replies.

No, he doesn't want any of the furniture but no, there's nothing really of any value, especially second hand.

He's paid into the house for 2 years and wants to see something out of it but he knows there's no value in the house.

We'll have to agree over the furniture, I guess the best way to do it is put a current price on it and split the value equally? If a sale is forced, the furniture wouldn't be worth much!

At the end of the day property is an investment in that it can make or lose money.

What would your partner expect if he was dabling on the stock market. That because he put money in he is guaranteed to get money back! It doesn't work like that I'm afraid.

If your property has lost value then he must share that loss with you I'm afriad.

ViolaLass

I agree with Cloud. If anything, your ex owes YOU money.

Susieq_1985

Thanks for the replies.

Thrugelmir

Susieq_1985 wrote: »

We didn't pay a deposit as it was a new build and its now in negative equity.

Unless you can reduce the mortgage sufficently to address the issue of negative equity. Your lender may prefer the security of both parties remaining on the mortgage to underwrite the shortfall still.