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Money owed to ex?
stalkah
Posts: 227 Forumite
Hi All,
Not really sure where to post this, so thought I'd give here a try first. This is a moral dilemma and not sure what I should do? (sorry it's a long post)
Back in 2007 I bought a house with an ex we went 50/50 on the deposit but I paid about 80% on the monthly mortgage payments.
A year or so later we split up, she decided she didn't want to move and was getting a big pay rise in a few months so I moved out but carried on paying for 6 months until she could afford to pay by herself.
After a few months of having to pay for the mortgage she realises she couldn't afford the place so rents it out, without my say so (I didn't find out for about 3 years) it was then rented out until early this year when it was finally sold. Apparently whilst rented it was only paying the mortgage and not making a profit.
Before we listed it on the market she told me there was fees she had to pay whilst it was rented out for things like a leak in the downstairs toilet (would have claimed on new building insurance if I knew about it) and then when she had to pay the mortgage because she had no tenants in there. So wanted about £4000 more of the equity than I got.
Initially I said ok but wanted to see invoices etc for the bills she had to pay, to date I have not seen these but I still instructed the solicitor to pay her £4k then split the rest 50/50 between us.
(un)fortunately the solicitor forgot to do the split and gave us both 50/50 of the equity I initially didn't realise as the solicitor kept my money for a house purchase. It wasn't until 6 weeks after the sale she contacts me explaining what has happened and wants her share.
I've asked for invoices again but still nothing, it's all gone quiet and I haven't heard from her in a while but know at some point she will come for the money, which I have now put a side in a bank account so it doesn't get spent.
I'm in 2 minds as to what to do, do I tell her I'm not paying because I've previously paid towards the mortgage whilst not living there plus paying more of the mortgage whilst I was there, or do I just wait for the day she finally hands over the invoices and then pay her?
Thanks all
Not really sure where to post this, so thought I'd give here a try first. This is a moral dilemma and not sure what I should do? (sorry it's a long post)
Back in 2007 I bought a house with an ex we went 50/50 on the deposit but I paid about 80% on the monthly mortgage payments.
A year or so later we split up, she decided she didn't want to move and was getting a big pay rise in a few months so I moved out but carried on paying for 6 months until she could afford to pay by herself.
After a few months of having to pay for the mortgage she realises she couldn't afford the place so rents it out, without my say so (I didn't find out for about 3 years) it was then rented out until early this year when it was finally sold. Apparently whilst rented it was only paying the mortgage and not making a profit.
Before we listed it on the market she told me there was fees she had to pay whilst it was rented out for things like a leak in the downstairs toilet (would have claimed on new building insurance if I knew about it) and then when she had to pay the mortgage because she had no tenants in there. So wanted about £4000 more of the equity than I got.
Initially I said ok but wanted to see invoices etc for the bills she had to pay, to date I have not seen these but I still instructed the solicitor to pay her £4k then split the rest 50/50 between us.
(un)fortunately the solicitor forgot to do the split and gave us both 50/50 of the equity I initially didn't realise as the solicitor kept my money for a house purchase. It wasn't until 6 weeks after the sale she contacts me explaining what has happened and wants her share.
I've asked for invoices again but still nothing, it's all gone quiet and I haven't heard from her in a while but know at some point she will come for the money, which I have now put a side in a bank account so it doesn't get spent.
I'm in 2 minds as to what to do, do I tell her I'm not paying because I've previously paid towards the mortgage whilst not living there plus paying more of the mortgage whilst I was there, or do I just wait for the day she finally hands over the invoices and then pay her?
Thanks all
0
Comments
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Sounds like you have zero obligation to pay her a penny more than 50% of the equity.
Whether you want to is really up to you. Whether you should do is up to your solicitor.0 -
Wait until you hear something from her, shes chancing her luck from what I can see. If she does provide the invoices then provide her with the extra money you paid whilst living together and money you put towards the mortgage when you moved out.
Plus she had no permission to rent out the property without your knowledge in the first place. She should have checked when selling all the paper work was correct - tough luck now isn't it!0 -
I wonder if she was declaring the rental income to HMRC. Keeping in mind that if this was a repayment mortgage (rather than interest only) then only the interest portion of the mortgage payment was tax deductible.
Your ex sounds as though she is at it. She didn't tell you the place was being let out (did she tell the mortgage lender I wonder...) which could have lumbered you with landlord responsibilities if the s!!t hit the fan with one of the tenants.0 -
I wonder if she was declaring the rental income to HMRC. Keeping in mind that if this was a repayment mortgage (rather than interest only) then only the interest portion of the mortgage payment was tax deductible.
Your ex sounds as though she is at it. She didn't tell you the place was being let out (did she tell the mortgage lender I wonder...) which could have lumbered you with landlord responsibilities if the s!!t hit the fan with one of the tenants.
I was thinking that also, plus with the property in joint names, OP would be due tax on 50% of the profit..rent minus mortgage interest minus allowable expenses
Does not sound like it was converted to a BTL mortgage and not sure whether OP would have had to sign something to obtain consent to let...5 year+ seems a long time for consent to let0 -
As far as I'm aware there probably was no consent to let and it was an interest only mortgage.
I was feeling bad for considering to tell her to do one, but reading the comments so far that seems to be the right thing to do
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