Buying out my ex.... am I being fair?

Ozzuk

You also have the liability if the house price falls, but also the benefit if in increases. Buying her out at that price seems totally fair as its similar to what you'd get if you sold now (though it may sell for less than valued).

If I wanted the house that much I'd totally do what you are doing, otherwise just sell. Make sure you've tied everything up with a financial settlement that includes pensions...

ethank

You will have the future benefit of any increase in value. 50/50 at todays value of any equity is fair in my opinion.

I think your ex has been very honourable continuing to jointly service the debt. There are lots of horror stories on here from people who have not have been as lucky as you. Plenty of others would just have left you to pay it on your own.

getmore4less

What you are doing is selling the house in joint names

You are buying it in one name.

If you don't like the price sell it to someone else.

In the mean time hope she does not work out that you should be paying her rent for her share of the house while she still owns it and is still paying the mortgage.

Fail to cough up the rent and she could install someone in her share and collect the rent from them.

Or stop paying rent and move back in with anyone she wants.

PasturesNew

Forget the cost of the borrowing, you need to only see the £46.5k. Also, if you sold up to divide the money, there'd be selling costs, so it'd be fair/right to offer her £45k.

TBagpuss

As PPs have said, yes, 50/50 is fair - you can only look at the asset you have now, not what you might have, or might pay, in the future.

It is important that you have a formal agreement drawn up - a Consent Order if you are divorcing, a SEparation Deed iof not.

Also - normally in a settlement other assets would be taken into account - pensions, savings, any debt built up in the marriage, any difference in what each of you earn etc. Those may not any of them apply to you but it is really important that you have a full agreement recorded so that neither of you can come back later saying "yes, we split the house, but we didn;t do anything about the pension, r your higher earnings, and now I want something to deal with those issues" Obviously this is of more immediate concenr to whichever of you is currently the higher earner

Missko

Error.
Error.

Missko

Error.
Error.

Morgage_Confused

"the current value of our house is around £135k"
How have you worked that figure out? What if it would only sell for 125k?

Tigsteroonie

Missko wrote: »

In the mean time hope she does not work out that you should be paying her rent for her share of the house while she still owns it and is still paying the mortgage.

Rubbish.

She is liable to the mortgage company to pay until they agree otherwise. It's her choice not to live there.

(1) It may not be her choice not to live there. We don't know the circumstances of the breakdown and the decision as to who remained and who didn't. All we know is that she is with someone else now.

(2) She is probably very aware of the fact that she is still liable to the mortgage company, hence why she is trying to get this resolved. I doubt she's daft.

(3) The OP has benefited from an entire house to himself, on which she is paying 50% mortgage. So he has had some benefit from her contribution whereas she has had no benefit from his contribution.

(4) This benefit of having access to her half of the property rent-free is often 'off-set' against the 50% mortgage contribution in such situations on the basis of 'notional rent'.

OP - 50% of the equity at the point of her ceasing 50% mortgage payments sounds fair. But as someone else mentioned, the financial proceedings on divorce will also consider other assets such as savings, pension holdings etc, so don't make any rash offers until you have considered everything. Have you started mediation?

Sorrry everyone, but emotions and the sense of right & wrong don't come into the financial proceedings. You can have a sense of injustice, but it doesn't carry any weight in court. That's just the way the process is.

Missko

Error.
Error.