House purchase question

onlyroz

Surely the main question is: do you want to continue living in this house? If so then the simplest solution is to buy the ex out (i.e. by giving him 50% of the current equity) and then set up a proper maintenance arrangement through the CSA.

However, if you *do* want to sell the house then I guess things become a bit more complicated...

Mods

FBaby wrote: »

Sorry if it came across that I thought it was her fault the house hadn't sold, it wasn't my intention, just that she had more control over trying to help it happen. 6 years is a very very long time to let a house not sell.

I understand that you don't care about what is fair to her ex, but to reach some kind of resolution, you won't be able to ignore fairness because anything unfair will inevitably come with him not agreeing and therefore going nowhere.

The way he probably sees it is that as much as your partner has been an excellent mum and insuring the best for her kids, he has insured that they remain in the house and local schools by continuing to pay half the mortgage, which most likely meant some sacrifices on his side. On this basis, he probably considers he is entitled to his half.



And if that had happened, he might have been entitled to a lot more equity on the basis of the value of the house at the time of the separation. But it didn't happen and therefore he can't use this as an arguement for more equity than half of the current value.

I really do think taking the current situation, the need to come to a resolution, and all the 'what ifs', into consideration a release of 50% of the current equity is the best move forward.

daska wrote: »

oh yes, and get more valuations, obviously the current agent has it too highly priced - 6 years is a very long time for no one to make an offer! (Either that or your fiance hasn't been presenting the house to best effect - difficult with young children I appreciate.) Ask at least 3 agents to estimate for both best price and quick sale. Have any similar local houses sold recently, if you can get details of purchase prices on them it might help.

To be honest, I think my partner drew a line in terms of how much she was willing to reduce the price to help the sale so this may have hindered efforts to sell the property, but again this was her acting in the financial interests of herself and the children.

Fire_Fox wrote: »

Everyone already understands you but your logic is based on a hypothetical property market and hypothetical timeframe not the real one. For a start the price has not stayed the same or increased and is highly unlikely to do so before you sell or transfer providing you set a realistic value.

Mortgage payments have two parts: paying off the capital (small) = investment, and the interest (large) that you don't ever get back, it's akin to the ex renting the house for his children from the bank = maintenance. On top there is either an increase or decrease in value = equity, so a good return on the investment OR a poor return on the investment. The amount of interest paid (= maintenance) does NOT relate to the increase in equity, they are two independent issues. Your maths erroneously equates the two.

Do bear in mind in the scenario you propose the father might make a return on the property he doesn't live in BUT he also has no equity and perhaps cannot get another mortgage. His £15K equity on day one has a far lower value ten years on due to inflation so his 'share' needs to be a percentage. This uncertainty of this issue is why solicitors like to agree the division of equity soon after the split even if the property is not sold immediately.

This is the part we need to establish properly. So far, I'm only aware that a verbal agreement to split 50/50 exists between my partner and her ex. I don't know if this counts for much. Seeing solicitors next week one of whom asked to see conveyancing documents and the TR1 form which I've got but can't see how they might be relevant. Anyone know why?

Mods

Thank you Daska, Fire Fox and F Baby for all your help by the way. Heading to bed now but will return soon.

FBaby

In the end, there are many factors that can justify a 50/50 or less either way, that rather than trying to justify it, the best bet is probably to approach it on the basis of simple negotiation like buying a house from a stranger. You offer what you want to offer, he will most likely not agree, but return an offer, you accept or not and on and on. If you don't agree, well you are back to where you are, which seems to suit him more than you, so it might be that you will have to compromise and accept a higher offer than what you wish, but at least you'll get what you want out of it, you bying him out.

Mods

onlyroz wrote: »

Surely the main question is: do you want to continue living in this house? If so then the simplest solution is to buy the ex out (i.e. by giving him 50% of the current equity) and then set up a proper maintenance arrangement through the CSA.

However, if you *do* want to sell the house then I guess things become a bit more complicated...

Ideally, we want to make a fresh start somewhere else but we'd be happy to continue living in that house as the children have expressed their wishes to stay there. I agree that the simplest solution is to buy him out which I will do provided that the price is very reasonable.

FBaby wrote: »

In the end, there are many factors that can justify a 50/50 or less either way, that rather than trying to justify it, the best bet is probably to approach it on the basis of simple negotiation like buying a house from a stranger. You offer what you want to offer, he will most likely not agree, but return an offer, you accept or not and on and on. If you don't agree, well you are back to where you are, which seems to suit him more than you, so it might be that you will have to compromise and accept a higher offer than what you wish, but at least you'll get what you want out of it, you bying him out.

Makes sense but I worry that we can't deal with this guy like any other reasonable stranger! Only time will tell though as this is definitely the direction we're heading in.

MrsDrink

I agree with the others - Option 1. Get yourself some evaluations. Calculate the current equity. Offer him just shy of 50% of it. I would assume he'd then counter offer with slightly over 50%, in which case you come back with 50%. He (eventually) accepts. You take on the mortgage. The kids stay in their house (which you've said they want). Your OH goes to CSA for maintenance. Then when all the dust has settled you can then begin planning for your future as a family.

(PS Congratulations - expect to see missscousemouse over on the weddings board!! )

LannieDuck

I would drop the asking price to get a quick sale, acknowledging that I may get a return of slightly less than I've put into it.

But it would separate my from my ex financially, and he would then have to start paying child maintenance properly.

LannieDuck

MrsDrink wrote: »

I agree with the others - Option 1. Get yourself some evaluations. Calculate the current equity. Offer him just shy of 50% of it.

This is also a good way forward.

Marisco

onlyroz wrote: »

Surely the main question is: do you want to continue living in this house? If so then the simplest solution is to buy the ex out (i.e. by giving him 50% of the current equity) and then set up a proper maintenance arrangement through the CSA.

However, if you *do* want to sell the house then I guess things become a bit more complicated...

Exactly what I was going to say! Get it valued, offer him half the equity, then go to the CSA and get the CM sorted. Job done! Given that he's paid his share of the mortgage all these years, then it's only fair he gets half the equity. The fact that he hasn't paid CM is neither here nor there, it should have been pursued when they first split! And unless he was earning a good wage, it's odds on he couldn't have afforded CM and the mortgage anyway, not many could! So your lass would have had to either pay the whole lot herself, sell or get it repossesed.

marisco_2

If the house isn't selling via estate agents have you considered letting it go to auction?