Buying my partner out

134Mummy

I bought a property with my boyfriend only a couple of months ago. the deposit came wholely from my family and we have a joint mortgage. Also the cost of all furniture was bared by my family. The relationship has broken down and i want him off the mortgage and title deeds. I have offered to give him all moneys he has paid into the property (including his payments towards the mortgage) and what i consider to be a generous voluntary additional payment however he is wanting more (ie half of the valuation at todays date by an estate agent) as the property has theoretically increased in value since we purchased it. He says he wants a return on his investment - yet as he did not contribute in anyway to the deposit i do not feel he ever made an investment other than a couple of contributions towards the mortgage payments. He says he has taken legal advice and is entitled to much more. how can this be??

comeandgo

I would imagine he is entitled to this as the property is in joint ownership? Did you take legal advise prior to buying the property with boyfriend? My daughter and her boyfriend bought house together but her share of deposit was only £10'000 and boyfriends was £40,000 so it has been agreed if they have to sell property she gets back her deposit, he gets his back and any equity is split between them. Probably not the best way but this is the way they have things arranged.

Thrugelmir

Unless you had a legally binding agreement drawn up at the outset. Then there's no evidence to support the division of the equity in the property.

You'll need to negotiate a compromise.

134Mummy

thanks for advice. no we didn't have anything legal written up prior to purchase, but i thought we had a verbal understanding about the deposit money and furniture and that everything else would be split equally if things didn't work out. i am currently offering £3,000 voluntary contribution which on the basis that he has contributed no more than 2 mortgage payments (which i am also offering to reimburse him for) seems to me a very generous offer. it certainly matches my forecast prediction of half the profits if we had to sell (taking account of selling fees)

Annisele

Do you earn enough to support the mortgage on your sole salary?

If you don't (or if the lender thinks you don't), you won't be able to get him off the mortgage without either selling or replacing him with someone else.

kingstreet

On a recent purchase, chances are you won't be able to borrow more to buy him out, so what's the source of those funds?

As has been mentioned, you need to be able to prove affordability for the mortgage alone, can you do that under the new MMR rules?

Finally, the cost of a transfer of equity is £400 to £600 excluding the cost of his legal advice. Why not wait until you can remortgage into one name and reduce the cost?

dimbo61

Hi 134Mummy ? Do you have kids ? Is your boyfriend the dad ?
Please answer the two questions !
Counts are unlikely to evict you from your home with kids involved.
May be a good idea to get half an hour free advice from a family solicitor

getmore4less

If doing the equitable shares. and the price has gone up then he is due the share of rise for the share of the mortgage he was supporting.

by the time the expences are taking into account it may not be thta much.

to do the numbers need
total cost of purchase including costs(but not nay contents)
the cash contribution made by each of you towards the purchase and expenses
the mortgage.
the shares of the mortgage you were each paying.

The estimated(agreed) selling price value.

getmore4less

another thing why the breakdown, do you think this might have been planned?