HELP! ex turning nasty over house sale

g0009348

house value - start of 2010 167k
deposit 42k
outstanding mortgage around 124k

so in my eyes, i understand we have no argeement, and when i am talking about my parents equity I mean it simply in terms of a personal level. It wouldnt hold up in court but if she is willing to screw my parents over then at least that confirms us splitting up is the correct thing to do.

However the matter of fact is my parent loaned us 15k, and I put in 13.k so for her to be the sole owner of the house I would want this amount (less house value change, less title transfer etc etc)

mundibananas

If the ex is keeping the house, then she owns all the loans, eg the mortgage and the parents contribution. However, if the house is not worth what is was when the deposit was first laid down, then the amount owed to you needs to be adjusted accordingly. The 'loan' from your parents should stand as it is less payments made. I assume they did not have a 'stake' the house, but merely leant you the money to assist you with the purchase.

So if the house is worth 10% less - then you should only get £12600 back. The parents get £13K paid for by your ex.
You need to get the house valued by 2 or 3 independent valuers to sort this out.

Good Luck

The_Blue_Hatter

Lets say you agree to sell the house to her for 160k. After the 124k mortgage you have 36k of which 13k should go to your folks leaving 23k to be split between you and your ex so you have 11.5k. If you can get her to agree to buy the house for the price you bought it (167k) then you would have 30k to split between you.

I suppose it all depends what you agree the house is worth.

g0009348

Thank you, the last two posts are exactly how I see it.

swish2k

Think of things another way. If you guys had stayed together, would you expect her to pay back the full £15k your folks loaned to you? Surely you were paying it back half each? So regardless of whether the split is amicable or not, you should still pay half each back to your folks. Your half would be made monthly or whatever your agreement was or come out of any profit made from the sale of the house as it would if you guys had stayed together and sold the house at any point. Potentially profit could be nothing in the current climate, so I would take her offer and run, as it is actually quite generous. If the property is in negative equity, she could get valuations and start deucting any negative equity from what she had agreed to give you. She sounds like she's being more than reasonable to me!

g0009348

we would be both living in the house though, i have moved out, she is currently living in a house on a decent mortgage rate due to the extra deposit given by my parents. If the house is sold to somebody else then of course we would need to split the money to be paid back, however she wants to buy me out of the house to continue living there.

InkZ

I wouldn't even include your parents money as their money, I would just say it's money that you put in and she's already paid 2k of that back so you have 27k of equity tied up in the house from your side.

She's obviously confused. At first read what she says makes sense, but that money is in the house as equity not money that you have both spent between you.

Check what the house is worth, if it's gone down in value then take the 7k hit and then run like mad. Check houseprices.co.uk for what's sold in your area. If the house was to be sold normally then you would have over 2k estate agent fees etc to lump on top, not to mention all of the hassle and extra mortgage payments, so if you have to take a bit of a hit to get rid of it, I would seriously consider it.

swish2k

I have just re-read your post OP and obviously read it wrong the first time! Yes, the blue hatter's post is defo the best way of explaining things and is exactly how the cash should be shared. Your folks should be paid back from any 'profit' on the price you agree to sell the house to your ex at and the rest should be split evenly between you. Defo the most simple explanation! Sorry, I got my wires crossed!

Your only potential snag now is how your valuations come out. Hopefully the value won't have diminished too far since you bought the house and you will come out with some kind of profit. Get at least 3 valuations and insist on being there when the valuations are done so that your ex doesn't try and do the dirty on you by telling you the house is worth less than it actually is. Good luck!

g0009348

thanks you all so much for your help, its amazing no matter how confident I am i'm correct when somebody tells you with so much passion and anger I am wrong, I kinda started to belive it.

DVardysShadow

johnbusby wrote: »

My thoughts are that your ex is right. For simplicity think of it as your parents loaned you both 7.5k each then surely it is only fair that she would pay 'her part of the loan back', otherwise she would also be covering your liability

Edit: Of course this assumes that the house is still worth what you paid for it (unlikely?) in which case you are also going to have to take a hit on the lost equity

Assuming that there is still the same equity coming out, I disagree here. She will walk away with over 20k for putting in 14k, whereas OP will walk away with 7k for putting in 14k.

This arises because she is splitting the equity equally and insisting that the OP pays back the entire loan from his share.

There are 2 ways to do this correctly

• Pay parents back in full and then split the remainder equally
• Split the whole lot back equally and each pay back half the loan.

What she is doing effectively, is a hybrid of these 2 possibilities, where shares are calculated according to the first arrangement, but parents are not paid back and then paying parents back according to the second arrangement, but claiming that the difference between the 2 arrangements which the OP receives is actually her contribution under the second arrangement.