Buying my ex out of the house

estvic17

I have recently separated. My ex wants me to buy him out.
We pay for the house £ 345.000 7 years ago, our outstanding mortgage is £ 184.000, the house now is worth £ 425 aprox.
I calculated that we have paid so far £161 , so would I have to give him half of this ( £80.500 ) which is the money he has contributed over the years regardless of the value of the house, is this correct?
Thank you
E

Barny1979

Nope, you would need to give them the difference between the current value and the remaining mortgage (the equity) Also you would have to remortgage for the outstanding balance + half the equity.

prowla

425k - 184k = 241k equity.
241k / 2 = 120k each (plus 1k to cover costs).

(The alternative is to sell the house and split the profit.)

enthusiasticsaver

The calculations have been done for you and you would have to apply to take over the mortgage in your own sole name and raise £120k to buy out your ex which means you would need a mortgage of £304,000 unless you have savings or other income you could use. Of course that only works if your income is enough to cover that. The alternative is to do as #3 suggests and sell the house and split the proceeds and start again, both of you with £120k. If you are married and have kids though this would all be sorted in the divorce settlement and may not necessarily be a 50/50 split.