Separated from partner, can I get my deposit back?

beaver07

Right, here goes.

Myself and partner have split up and are discussing what to do with our house which we own 50/50.

We have owned the house for almost 5 years and I paid the full 10% deposit of £13,750.

She wants to take the house on her own, which I have agreed with as long as I get my £13,750 back plus half of what I have paid on the mortgage up to now, roughly £4,000.

Can anyone see why this is not viable and if my demands cannot be met?

Many thanks,

BitterAndTwisted

Plus what you have paid on the mortgage? That doesn't sound very fair to me.

Get he property valued, you take your original deposit and split what equity has been built up, if any.

dominoman

No, that would not be fair or right. You put in 10% up front so deserve 10% of the increase (or decrease) in value. The mortgage payments are mainly dead money (bank interest) so there is no reason she should pay you that back.

The way to work it out is to split it by ownership.

At the beginning you put in 10% and you then split the mortgage. So in total you own 10% + 45% and she owns 45% of the house.

To work out what you get back the fairest way is to get a valuation done. Then you get 55% of that value and she gets the rest. You would of course use your 55% to pay off your half of the remaining mortgage and what's left is yours.

beaver07

BitterAndTwisted wrote: »

Plus what you have paid on the mortgage? That doesn't sound very fair to me.

Get he property valued, you take your original deposit and split what equity has been built up, if any.

Thanks for the reply. I'm merely just testing the water, not been through this before. I'm just wondering is my deposit guaranteed to be paid back to me, I don't think it fair if i was to lose out on that much money.

Mattygroves2

Did you document your deposit contribution properly when you bought ? If not then you may have a job getting it back as legally all you'll be entitled to is 50% of the net sale proceeds.

Get it valued by 3 estate agents and take the average as a starting point for negotiations then do as BitterandTwisted has said.

Mattygroves2

beaver07 wrote: »

Thanks for the reply. I'm merely just testing the water, not been through this before. I'm just wondering is my deposit guaranteed to be paid back to me, I don't think it fair if i was to lose out on that much money.

Depends on whether the property has gained in value or not. If it's lost value then why shouldn't you take part of the hit ?

AdrianC

You bought a house together. You own the house together. You each put in - I presume - what you could, with the intention of benefitting you both.

You're both intelligent, mature adults. Sit down with a pen and a piece of paper, talk honestly and openly to each other, and agree a solution that you both find acceptable. "Viable" is one of those string-measuring words.

If it helps to avoid the discussions descending into arguments, accusations and recriminations, do you have a "neutral" mutual friend who can keep you civilised and focussed?

BitterAndTwisted

beaver07 wrote: »

I'm just wondering is my deposit guaranteed to be paid back to me, I don't think it fair if i was to lose out on that much money.

No, it isn't. The only way to have been absolutely certain of receiving your original deposit back would have to have had a Deed of Trust drawn up when you purchased.

Now, it's down to whatever you and the ex can agree on. Asking for your mortgage payments back is likely to scupper that completely.

beaver07

AdrianC wrote: »

You're both intelligent, mature adults. Sit down with a pen and a piece of paper, talk honestly and openly to each other, and agree a solution that you both find acceptable. "Viable" is one of those string-measuring words.

If it helps to avoid the discussions descending into arguments, accusations and recriminations, do you have a "neutral" mutual friend who can keep you civilised and focussed?

To be honest, when we do discuss it, it won't end up in arguments, we have come this conclusion amicably and i expect it to continue that way. I wouldn't want to take anything i am not entitled to but likewise i don't want to miss out on anything.

Foxy-Stoat_3

Speak to the lender and see if 1, she meets their affordability criteria and 2 there is enough equity in the property for her to pull out the £13K or 10% you two agree on, if she has no savings.

If she cannot do both then you will have to sell and split the equity.

Prothet_of_Doom

dominoman wrote: »

No, that would not be fair or right. You put in 10% up front so deserve 10% of the increase (or decrease) in value. The mortgage payments are mainly dead money (bank interest) so there is no reason she should pay you that back.

The way to work it out is to split it by ownership.

At the beginning you put in 10% and you then split the mortgage. So in total you own 10% + 45% and she owns 45% of the house.

To work out what you get back the fairest way is to get a valuation done. Then you get 55% of that value and she gets the rest. You would of course use your 55% to pay off your half of the remaining mortgage and what's left is yours.

Okay so I make this : if the house value has gone up 10% to £151250, the OP gets £29525 back (assuming partner and he both paid £4000 each in addition to the interest)

BUT if the house price went down 10% to £123750, he gets back just £14188

and if it stayed the same he gets £21750

So provided house prices have not dropped your offer is more than fair. If house prices have dropped, I'd suggest she tell you to take a hike, and if house prices have not moved, then she would be advised to bite your hand off.