Valuing a House prior to divorce settlement

kazar76

My S2BX (Soon-to-be-ex) and I purchased a house in 2006. At the time, the house was valued at £280k but we purchased the house at £249k and therefore avoided the 3% stamp duty. We have a mortgage of approx £180k.

My are about to start divorce proceedings and are trying to do things as amicably as possible. We have a young daughter and although I have left the marital home, my daughter is settled and I'd like her (and my S2BX) to continue living there.

My S2BX and her new partner wish to buy me out and we've agreed to split whatever the equity is 50/50. We are about to get 3 Estate Agents (which she chose) to value the property with the idea to take the average valuation as the agreed settlement figure. However...

My S2BX believes that the valuation should be based on what the house would sell for - meaning that it would sell better if the house was valued at less than £250k in order for any buyer having to pay 3% stamp duty. My argument is that we aren't selling the house and therefore no stamp duty is going to have to be paid. On the contrary, it would be me having to pay stamp duty on any property I purchase with my equity. I believe the house is worth around £265k and I believe I won't be far wrong.

I'm concerned that Estate Agents will value the property at a figure above the 3% stamp duty threshold but it will be interpreted that the market value will be used as the valuation (ie £249.995).

Also, her solicitor has advised her "of course, when selling a house no-one pays the asking price and the seller always knocks the price down a bit" and told her that that should be taking into consideration when settling on a figure.

I appreciate that when you marry, each other's possessions are equal but I but the largest deposit down on the house in the first place and I only want what is fair.

What does everyone else think / suggest?

GDB2222

Generally, the house is taken at market value, which is indeed likely to be £250k. Don't ask an estate agent. You will need a surveyor's valuation. *IF* it goes to court, it would be reasonable to argue that you should get a tad more for your share of the equity, as you will need to buy somewhere and have the SDLT to pay. I'm not convinced the Judge will accept that, though.

This is the marital home, and assuming it's a reasonable length marriage your larger deposit won't be taken into account.

The child's needs will be put before yours.

Go see a solicitor for some advice.