Advice please - buying out ex on mortgage

busybree

In November 2006 myself and my then fiance bought a property for £225,000. The original offer accepted was £205,000 and we arranged a £185,000 mortgage and received a cash gift from his mum of £20,000. Due to him being indecisive and requesting extra surveys that we didn’t need the sale fell through and the house was put on the market elsewhere for an extra £20,000 – I was devastated and his mum gave us the extra £20,000 to buy the property. She was very ill with cancer and wanted to see us settled and sadly passed away soon after.

Three years later we broke up and my ex moved into rented accommodation. We discussed who would be able to cover the mortgage on their own and he did not want to. I have covered the mortgage on my own for the past three years.

I am currently in the process of taking him off the mortgage and wanted advice on whether I have gone about things the right way – between us we have come to a figure of £45,000 for me to pay him which includes the £40k deposit (although the £20,000 price rise was completely his fault I don’t feel I can argue about money his mum who has passed away gave us) and £3,408 for 50% of the actually mortgage equity that was paid off whilst we were jointly paying the mortgage together. He asked for the extra £1,592 as ‘compensation’ for the time that he has had to wait for this to be done as it has obviously been difficult for me to get the £45k together.

The bank valued the property at £220,000 at a base amount if they had to auction it etc so could only lend me £10,000 (I have £10,000 and am borrowing £25,000 elsewhere) but similar ones are on the market for £260,000.

The transfer will be ready in a few weeks and I have honestly have no idea if we have gone about this properly or if I should have only paid back half the deposit and let him claim 50% of the increased value?

Any sound advice would be appreciated.

Thanks

Thrugelmir

Life isn't all about money. If you wish to retain the property as your home. Then the settlement is fair. For you to sell the property and buy something similar would be both costly and stressful. The way you've gone about it is straightforward, and you can both get on with your separate lives.

Applaud yourself for a mature approach to an issue which many couples struggle to resolve amicably.

Dave_Ham

There is no right or wrong answer here, if you are both satisfied and protected - in terms of being done through a solicitor and monies released at appropriate times.

Legally, if nothing was formalised in advance you are being too generous.

That said, it would cost you both a fortune to go through this legally so whatever you can agree on and be happy then good all round..

All the best

kingstreet

busybree wrote: »

The bank valued the property at £220,000 at a base amount if they had to auction it etc so could only lend me £10,000 (I have £10,000 and am borrowing £25,000 elsewhere) but similar ones are on the market for £260,000

Presumably you are taking additional borrowing from your existing lender, as a penal way of valuing the property is more likely via that route.

Did you consider remortgaging to a new lender to see if you could get a better valuation and interest rate in raising all the money you needed?