How do I work out what he's entitled to on Mortgage?

amandarosina

Hi there,

I'm hopefully buying out my ex early next year and am trying to work out how much to offer him.

The house we both own now (that I live in with our kids) was bought for £56,000. I put a deposit down of £10,000 from the sale of my flat which was in my name alone (my solicitor has said I need to take this off the workings out to get this money back. I do hold the documents to prove this £10,000 is mine). So, our mortgage was £46,000. (£36,000 still now owing)

We are 10 years into a 25 year mortgage.

I have had the house valued at £100,000 but was told this doesn't reflect the price that is accurate as they noticed lots of building work that needs repairing. So far, the quotes I have for re-pointing, roofing and windows comes to £6,000, (It is in a terrible state). I have spoken to my ex about this, at first he wasn't happy with me taking this into account, but it is standard practise to deduct money for any work you feel is required? The estate agent said if I got a full survey done then this would highlight all the building work that needs doing and therefore would come off the price.

Can anybody help me work out how much to offer my ex? Many thanks in advance

Gonzo33

From what I can gather the mortgage ltv was 82.14%. If the house is currently worth 100k - 6k you are looking at 94k. 82.14% of 94k is £77,211.60 half of that is £38605.80.

Unless you are not splitting 50/50.

I think that is right. I am sure someone will correct me (please do) if I am wrong.

amandarosina

Oooo dear, someone else worked it out totally different and came up with ex getting £10,000. £38,000 does sound an awful lot, that's well over a third of the house value? I'm so confused! Many thanks for your reply

poppysarah

What did you agree when you bought it?


Assume you sold it now - and paid off the mortgage - what would they get?

Because that's what you could do for real.

Firefox1975

£94k minus £10k deposit refunded = £84k

£84k minus mortgage owing (£36k) = £48K

£48k / 2 = £24k

amandarosina

Hi there Poppysarah,

thank-you for your reply. We have 50/50 agreement. I can't sell house, I have 2 young children and am restricted to part-time work so am limited on what mortgage I can get.

I just want to make sure he gets what he's entitled to, and not a penny more, (he cheated and lied) but I'm still unsure as to how to work it out? Many thanks

agrinnall

I'd work it out like this.

Assume sale price of £94K (big assumption, in the current market it's likely that you'd get less than that).

Subtract your £10K deposit = £84K

Repay the outstanding mortgage £36K = £48K

Split the £48K between you, if you agree equal shares then your ex is due £24K.

amandarosina

Ooo Firefox, that sounds better!! Many many thanks :T

Ju&Mel

If the house was £56k, but it has gone up to £94k, it is only fair your 10k % should have gone up too!
£10k is 17.86% of £56k
17.86% of £94k is £16788
£94k - £16788 = £77212
£77212 - £36k (outstanding mortgage) = £41212
£41212 / 2 = £20606 each

poppysarah

amandarosina wrote: »

Hi there Poppysarah,

thank-you for your reply. We have 50/50 agreement. I can't sell house, I have 2 young children and am restricted to part-time work so am limited on what mortgage I can get.

Do you know what the limit is to what mortgage you can get?

rpc

Why take off the £10k deposit? You swapped cash for equity so the 10k is neither here nor there.

Your deposit was 17.8% of the cost.

Currently there is 100-6-36=58k equity.

I would split this 41:59 or £23.8k to him and £34.2k to you. That's giving you back 17.8% and then splitting the rest 50:50.

Or, if you are married, then this would be part of the financial settlement that would probably start at 50:50.

If you own as joint tenants then legally there is no 'bias' either way. If tenants in common, then it is the specified percentages.

Of course, the real answer is "Whatever you agree, or a court orders". If you can't agree then you are scuppered. There is no "you must take £x in exchange for y" unless you spend oodles on lawyers feed.