Mortgage advice, relationship breakdown

Lee_77

Hi all,

Okay as the title states I own a joint mortgage with my now ex girlfriend. I moved out as she wanted 'space' so I now rent a room from a friend. She wants me to take my name off of the mortgage which I am happy to do so but feel I deserve (a little)something as have put a lot of effort into the house (flooring, fencing etc) and have potentially increased the value by up to £30,000.

Okay the money part........

Mortgage - £140,000 (joint)
Deposit - £30,000 (from her parents)

Total £170,000

We got the house (4 bed semi) for £156,000 and spent the £14,000 by stripping it back to a shell then new flooring, carpets, new kitchen, new upstairs bathroom, fencing, paint, TV etc etc. The house was originally valued at £175,000 so we got a bargain.
We have owned the house since November 2013 and I moved out in August 2014 (not very long). Since then she has taken on all of the bills as she has a great job and can afford it and moved a lodger in.

As you can see none of the money came from me in the first place so I don't really expect anything back, I just find it hard to think that she could potentially sell and walk away with £30,000 profit (house value now around £200,000) and the £30,000 from her parents and I can only afford to rent a room from my friend.

Anyway any advice would be really appreciated. I don't really have the money for going down a legal route and as we are still on good terms I had hoped this could be sorted between us.
I just am unsure if I am owed anything or should I just take my name off (her mum will add hers) and walk away.

Thanks

Lee

haras_nosirrah

I would say suggest

Current value - initial deposit - outstanding mortgage = profit

Split this figure 50/50 so she gets her 30k back plus 50% of the value increase

Lee_77

Hi Haras, thank you for the reply. I forgot to add the initial legal fees for buying the house came from the profit of her last house which came to about £5500. I don't think she wants to sell the house.

Thrugelmir

Lee_77 wrote: »

She wants me to take my name off of the mortgage which I am happy to do so but feel I deserve (a little)something as have put a lot of effort into the house (flooring, fencing etc) and have potentially increased the value by up to £30,000.

Then the ball is in her court to make you an offer.

Arguably you cannot expect much. As you made little financial contribution.

Armorica

And she is unlikely to be able to pay unless she sold the house?

Jon_Bake

Many things about a joint mortgage can change if the partners decide to separate ways. Me and my ex-wife had taken a joint mortgage from Northwood mortgage to buy a home in Toronto. Both of us had contributed equally and to the mortgage and so when we split I changed the house to my name by paying her the amount she invested plus an interest. And in this case since your contribution to the mortgage is significantly lesser you cannot be expecting much from her. And it is totally her call to make an offer. Maybe you should consult a mortgage advisor, they will give you the best opinions regarding mortgage solutions.

Foxy-Stoat_3

OP, what was your position before you bought the house with your ex, could you then only afford to rent a room from a friend?

As she/her parents put up the full deposit and buying/legal fees then morally the ball is in her court but still requires your signature to transfer the equity to her and your name off the mortgage and deeds so you can both move on, assuming the lender will agree that she can afford the mortgage on her own.

If you ask for a contribution of some of the cash that you have spent, if any, refurbishing the place to help you get into a rented place then thats the fairest outcome. Asking for 50% of the profit would be a little rich as to get the profit she would have to sell and after paying all the fees, legals and assuming the redemption charges for the newish mortgage there wouldn't be much left over and wouldn't make sense.

Good lucks

nubbins

Its a hard one but if it was me I would be looking for somewhere around 10k to walk away, that would seem fair and looking from the outside I would see that as fair from both sides of the fence.