How to c alculate figure for ex-partner to buy me out?

Pete456

M y ex-partner wants to buy out my share of our house, but the calculations are driving me crazy, so if anyone could help that would be so so much appreciated!

We purchased Nov 2011 for £173,000. Equal deposit of £30,000 each, leaving a mortgage of £113,000. Mortgage and house deeds are in her name, but it's an amicable split, so no much of an issue.

I paid £318 - half the mortgage each month between Nov 2011 and moving out in January 3014.

We both agree that house prices in the area have risen 10% since purchase. We also agree there's £600 of jointly purchased items she will reimburse.

But how do we calculate a fair figure, is it half the rise in total house price plus deposit and items? Or is it more complicated because the bank still 'owns' most of the house. And d o I take those 26 months of mortgage payments into the equation or just see them as my 'rent'?

I don't have figures for exactly how much we,ve paid off to hand. But any advice based on above figures would be so helpful.

Thanks in advance.

Thrugelmir

I wouldn't get too hung on it. Forget the mortgage payments you made. What was the mortgage balance when you left. Deduct this from £113k and split the difference 50/50.

Add your deposit £30k and the £600.

There's so many scenarios that could be applied. Better to move on with your life.

Pete456

Thank you very much for your reply.

I agree it's best not to get hung up and I definitely want to move know, but it's an important calculation to get right, and I don't see how your formula takes into account the rise in house price.

Apologies if missed something obvious! Thanks again .

tomcc1

Hi,

It strikes me that you've both paid in pretty equally. So get an estate round to value the house, then based on that figure, calculate the equity (value - outstanding mortgage) and divide that figure by half. Your partner then slaps another £600 on, job done.

Tom

jackomdj

As Tomcc1 above. But remember an estate agents value won't be the value of the house!

Thrugelmir

Pete456 wrote: »

I agree it's best not to get hung up and I definitely want to move know, but it's an important calculation to get right, and I don't see how your formula takes into account the rise in house price.

What's the house going to actually sell for? A subjective question.

If the property is sold then there's also costs to consider.

Your ex partner is also going to incur costs to buy you out.

amnblog

£173,000 plus 10 % growth = £190,300


Less current outstanding mortgage (ask lender for figure)


Plus £600 (jointly bought items)


Divide by two is the figure to buy you out.