Split from Fiance

Vobill

I think he's keen to make me pay any legal fees as he says he'll have his own legal fees when buying somewhere else - is this usual? I think fair enough that he's the one moving out but he originally agreed to be on this mortgage. A conversation to have I'm sure.

Seabee42

He will have legal fees on buying but it is also normal to have legal fees for selling as well. It is not unreasonable for you to ask him to pay half of these for the transfer to you (the equivalent of the sale).

chappers

Yeah perfectly normal, it's part of the cost of transferring the equity, maybe ask the solicitor, how much of his fees apply to the transfer of equity and how much relates to your new mortgage and split the transfer fees, alternatively he could stay tied into the mortgage with you, I'm afraid it's the price you have to pay for going your separate ways.

Thrugelmir

Vobill wrote: »

I think he's keen to make me pay any legal fees as he says he'll have his own legal fees when buying somewhere else - is this usual? I think fair enough that he's the one moving out but he originally agreed to be on this mortgage. A conversation to have I'm sure.

Compromise makes for far less stress. At the end of the day you are keeping the property. Your ex has all the cost and hassle of finding somewhere new. Personally I know which position I'd prefer to be in.
Suggest that he remains on the mortgage until the fixed term period ends. Then yes you've legal costs to bear but there'll be no ERC to redeem the existing mortgage.

I'd also look at the fact that if the property is sold. Then neither of you will come out on top. It'll cost everybody money. Particularly if you struggle to sell the property at a good price.

silvercar

Your ex gains, by ridding himself of the obligations of the mortgage. That is a debt that is a liability to him and will make securing a mortgage on a new property difficult to say the least. He needs to realise that this has a value to him.

tlc678910

I agree with Valuation minus Outstanding Mortgage divided by two. Simple as that.

I think you should aim to just give him his half of the money back, end of. Anything else (fictional selling costs, your solicitor fees, mortgage application fees) are just fuel to the fire at a tricky time.

What if you pay solicitors/ application fees and can't secure the finances - is he supposed to pay half of your unsuccessful attempts to buy? You are effectively trying to buy the house from him - you should pay.

I wouldn't pay until the point he comes off the mortgage/ownership though as if you agree to pay him off and he remains on the mortgage he could become unhappy with this as it prevents him from buying his own place and then force you to sell anyway to free him of it.

If you can't afford to buy it (the fees or obtaining the mortgage) you need to sell up and split the equity.
Good luck with your predicament, hope it works out OK for you both.
Tlc

In response to your post #3 using the above calculation you would not then do anything else to account for the mortgage payments he has made towards the mortgage. Some of the payment amount is interest (and this is lost) the remainder of the payment amount reduces the mortgage which is already taken into account in the calculation above (lower mortgage amount outstanding). Hope that makes sense.

Vobill

OK thanks everyone for your input. The house has been valued by 3 estate agents and the value is far higher than both he or I anticipated so it looks like we will have to sell up and split the equity. I'll be using the money towards getting a smaller mortgage on a smaller property,.