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Ex-Partner wanting name off property
Comments
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Are you perhaps able to come to an agreement between you?
I have experience of this from a few years back. I moved out and my ex took over full payments of the flat and bills. About a year and a half later I had met someone else and we were looking to buy somewhere together. I asked my ex if I could be taken off the mortgage and fortunately he was in a position to get a mortgage on his own, which he did. We also agreed he'd pay me back the deposit I put in and I took a few bits of furniture that I'd bought and wanted to keep.
A few people said to me I was selling myself short and to be honest I probably did out of guilt but it depends how keen you are for it all to be sorted. At that time, if we'd had to sell the flat I think we'd have made a loss and I wouldn't have got any money at all so this made sense.
I just wanted to get on with my life and so did he so neither of us wanted to make it awkward!0 -
Wrong. She will have exactly the same interest as if she'd paid the lot, all based on just what the entry at the Land Registry says.
What will happen instead is that the doctrine of equitable accounting will be used to factor this into the split of value of the sale, reducing the partner's share by half of the value of the deposit and some portion of the mortgage payment cost.
For example, a 25k deposit on a property bought for £200k and sold for £250k immediately after the split, as joint owners, would leave the partner with a £12.5k gain. Half of the £50k gain minus half of the £25k deposit. If sold for only £190k the partner would have a bill of £17.5k to pay. Half of the £10k loss plus half of the deposit.
It's not wrong. The property was purchased in mid 2013 so most of the mortgage payment is going towards interest rather than capital at the moment. They used one of the HTB schemes so only a 5% deposit and if there's a Declaration of Trust the OP should get that back. Then by the time you factor in solicitors fees etc there's probably little if anything left unless the property is in an area that has seen substantial property price increases in the last 2 years.0 -
Just go and read the legal firm link I posted earlier and you will find the clear statement that: "Recent case law (namely Stack v Dowden and Jones v Kernott) has clearly established that in the vast majority of cases, equity will follow the law i.e. the beneficial interest in the property will be equal, if the property is legally owned in joint names".It's not wrong.
The Land Registry entry is likely to be equal shares as tenants in common or joint tenancy so it'll be an exactly equal ownership interest with the equitable accounting principle used to handle issues like the deposit and mortgage payments.
There's a lot more useful content at that page and it's well worth reading.
I agree that there's probably little or anything left but there is some hint that improvements have been made and those might have increased the value.The property was purchased in mid 2013 so most of the mortgage payment is going towards interest rather than capital at the moment. They used one of the HTB schemes so only a 5% deposit and if there's a Declaration of Trust the OP should get that back. Then by the time you factor in solicitors fees etc there's probably little if anything left unless the property is in an area that has seen substantial property price increases in the last 2 years.0 -
Another alternative is get friend to take over her 1/2 the mortgage but get contract first. Need to check okay with bank.
Best speak to her and be civil rather than jumping to conclusion on what is wanted and why. What are the costs? is it really that important to you?0 -
Just go and read the legal firm link I posted earlier and you will find the clear statement that: "Recent case law (namely Stack v Dowden and Jones v Kernott) has clearly established that in the vast majority of cases, equity will follow the law i.e. the beneficial interest in the property will be equal, if the property is legally owned in joint names".
The Land Registry entry is likely to be equal shares as tenants in common or joint tenancy so it'll be an exactly equal ownership interest with the equitable accounting principle used to handle issues like the deposit and mortgage payments.
There's a lot more useful content at that page and it's well worth reading.
You're assuming there is no Declaration of Trust and that the property is either owned as joint tenants or tenants in common with a 50:50 split. The OP hasn't actually explained the set up yet. If the OP put in all the deposit that would be very silly. Not to mention that both parties, in particular the party paying the deposit should have been appropriately advised when the property was being purchased by the conveyancing solicitor.
Where are you getting any hint that improvements have been made to the property? The OP hasn't mentioned any, besides very few improvements substantially increase the value of a property.0 -
Another alternative is get friend to take over her 1/2 the mortgage but get contract first. Need to check okay with bank.
Best speak to her and be civil rather than jumping to conclusion on what is wanted and why. What are the costs? is it really that important to you?
Someone else can't just take over the mortgage. The OP and friend could apply for a joint mortgage together to buy the ex out but that would be a completely new mortgage with affordability checks and credit referencing.0 -
Right, because if it was something different a poster would normally know that, remember why it was done and mention it. Not guaranteed, just likely. Of course i asked for the actual facts, so we'll know rather than having to deduce.You're assuming there is no Declaration of Trust and that the property is either owned as joint tenants or tenants in common with a 50:50 split.
Should have but again it's the sort of thing that would probably be known to be important and mentioned, so at the moment my guess is that it wasn't done. But hopefully it was.If the OP put in all the deposit that would be very silly. Not to mention that both parties, in particular the party paying the deposit should have been appropriately advised when the property was being purchased by the conveyancing solicitor.
"I have this horrible gut feeling that I'm about to lose every penny I've put into this place (I paid the deposit myself)" could refer to just the deposit or it could refer to subsequent work as well.Where are you getting any hint that improvements have been made to the property? The OP hasn't mentioned any, besides very few improvements substantially increase the value of a property.
Hopefully Columbus88 will clarify the unknowns.0 -
Right, because if it was something different a poster would normally know that, remember why it was done and mention it. Not guaranteed, just likely. Of course i asked for the actual facts, so we'll know rather than having to deduce.
Should have but again it's the sort of thing that would probably be known to be important and mentioned, so at the moment my guess is that it wasn't done. But hopefully it was.
My issue with your posts is that you were saying, "what will," happen as though it's gospel based on some information you found online but it might not be what happened depending on whether or not there is a Declaration of Trust which is why I asked if there was in post #2."I have this horrible gut feeling that I'm about to lose every penny I've put into this place (I paid the deposit myself)" could refer to just the deposit or it could refer to subsequent work as well.
Yes it could just refer to the deposit. Even if the OP has done what he considers to be improvements as I've already said, very few improvements add value to a property.Hopefully Columbus88 will clarify the unknowns.
Given that the OP hasn't been back to the forum since 10 minutes after posting his question I doubt it. Hopefully he and his ex can come to an amicable agreement.
It's all become academic though as the OP hasn't been0
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