Help - Ex trying to force me out or pay more for her share

notrippedoff

Interest only 300 pcm split half and half with me paying remainder of bills.

mrginge

Well at least it's refreshing to see a new OP who doesn't sulk or resort to abuse just because some others disagree with him.

So let me try look at this another way. Your offer includes a reduction of 4k for selling fees. You would therefore accept that if you took the 35k from the parents then this would also be net of your half of those fees. That offer therefore means you would be paying 5k of neg eq (44 - 4 -35) and she would be lumped with 15k.

You reject that offer. And I can understand why. But your offer is nowhere near as generous as that so why should she accept yours.

In addition, you are buying her out of an asset that (one may reasonably expect) will appreciate in value as the economy strengthens. So, if you are asking her to pay fees that you expect to incur in X years from now, should you also expect to have to pay her for the opportunity cost of selling out to you now rather than wait for any potential equity gain in those X years?

Ultimately it is you who wants to stay there. If you can't agree then you have to sell, and you end up 14k (ish) down and having to find more to buy a new place. I think you have to suck it up and accept that you're going to have to pay more to stop there, or move out but with less hit of the neg eq.

I still think 32 is a fair offer. 3k less than you've been offered (but she put 3k less in), but more than she gets for selling on open market.

ValHaller

Sell for 205000

Pay off mortgage = 140000
Pay EA 1.5% +VAT = 3690
Solicitor to sell 1100 +VAT = 1320
Call it 145000 to be paid off

Equity remaining 60000 - she gets 41/85 of this = 28950

Annisele

notrippedoff wrote: »

MobileSaver and ValHaller
House bought for £225k. RICS Valuation £205k. £20k lost in downturn.
I invested 44k she invested 41k, total 85k.
Mortgage remaining circa 140k

I am not a lawyer, so this is just based on what I think is fair.

If you'd only posted the above figures, I'd have said:

• Equity is £65k. You haven't actually sold, and you don't plan to - so deducting sale costs isn't fair.
• So, one reasonable option would be you pay her £32.5k (half the equity).
• Another reasonable option would be you each get your deposits back first - meaning you get back £3k more than she does, and you pay her £31k.
• Another reasonable option would be to say that she'd effectively bought 48% of the house (because £41k is 48% of your total initial deposit), and so she should only stand 48% of the loss. That would mean she gets back about £31.4k (her original deposit less £9.4k).
• So a fair offer would be somewhere between £31k and £32.5k.

However, I think the fact she's offered you £35k is highly relevant to working out what's fair.

You both want to keep the house. You offer £24k for the house be in your own name - but she offers £35k to buy you out. So, I think you should either offer her more than £35k, or you accept the house is worth more to her than it is to you and accept her offer to buy you out. (Assuming she can take over the mortgage in her own name).

In either case, I think that whoever ends up keeping the house should pay for everybody's legal costs out of their own money.

getmore4less

ValHaller wrote: »

Sell for 205000

Pay off mortgage = 140000
Pay EA 1.5% +VAT = 3690
Solicitor to sell 1100 +VAT = 1320
Call it 145000 to be paid off

Equity remaining 60000 - she gets 41/85 of this = 28950

44/85th = £31k

Take the £35k buy when on the open market,

if it sells for more you were wrong

if it sells for less you are up even more

getmore4less

notrippedoff wrote: »

Getmore4less
If something isn’t for sale, ie my share, then you have to expect to pay a bit more to secure it. She wants to sell not me, often when you sell you have to take a little less than you expect to liquidate your asset. I think a court would see that I am entitled to remain in my home if I am willing to buy her out at current market value less selling costs

Something is only for sale when the price is right.

currently neither of you has a share for sale at a price that is acceptable

They have trumped you by offering £35k while you only offer £27k.

the fact they might just go and sell after paying you off is irrelevent they take on all the risk and costs which will go in their favour if it went to court.

You are clearly saying with your offer(which you say is reasonable) that their offer is excessive.

Kynthia

ValHaller wrote: »

Sell for 205000

Pay off mortgage = 140000
Pay EA 1.5% +VAT = 3690
Solicitor to sell 1100 +VAT = 1320
Call it 145000 to be paid off

Equity remaining 60000 - she gets 41/85 of this = 28950

I'd work out a fair share the same way as this, but round to £29k. The maybe as a final resort offer £30k as it sounds psycologically more than £1k higher and surely it's worth it to keep your house.

Thrugelmir

notrippedoff wrote: »

Don't see why I should as I have never expressed an interest in selling. If I sell at 35k I lose 9k and I paid the majority of bills when there. If they offered me 44k then I would have to consider but in reality I like my home and feel if she wants to sell then surely it should be at current market value ???

Totally irrelevant. There's no basis to argue who paid for what. In most partnerships there's a differential in earnings. Did your ex do most of the housework?

Thrugelmir

notrippedoff wrote: »

I invested 44k and she invested 41k against mortgage.

Did you draw up a declaration of trust. If not the likely outcome is 50/50 division of equity.

Judges hate having their time wasted. So expect to bear the costs if it did end up in court.

notrippedoff

Mrgine
Thanks, I know what forums are like and many don’t like to read what they don’t want to hear, I’m just looking for impartial opinion on the subject. Understand your point but I feel that they made that offer purely to try and make me bid higher. Her original letter from solicitors stated that her client wants to SELL her interest either by making the property available on the open market or by you purchasing her share. She has never expressed an interest to buy my stake as she herself doesn’t have the funds or income to support the mortgage.


Without boring people with details there side are trying all sorts of devious acts, for instance after us both agreeing that we would accept the valuation placed within the RICS report, I have since found out from the surveyor that her family contacted him placing pressure on him to increase his value, he original said 200k. I think they know I don’t want to sell and are offering 35k only in an effort to try and make me raise my offer.


Valhaller
Your calculations on the topic are pretty similar to my revised calcs


Annisele
I hear what you are saying but repeat what I have said to mrgine above


Getmore4less
I have offered to advertise the property on rightmove for 230k, which she thinks it’s worth despite the RICS valuation. I said if we get no offers then you have to accept your wrong, if we get offers then I have to accept I am wrong. She declined this course of action...


Kynthia
Thanks agree with your comments


Thrugelmir
No she didn’t, she was bone idle to be honest! I also contributed far more to decorating the home and making improvements such as landscaping, double glazing etc. She contributed f-all really hence my pleasure in getting rid of her. PS No dec of trust no. 50/50 division of equity would leave her with 31k max, she refused to budge for any less than 37k currently. Would a court think that was fair?