Ex buying me out after break up

Cobzeh

Hi,

Recently going through an amicable split with my ex. We have a joint mortgage on a property that she wants to keep. I am happy to let her buy me out but I have no idea how much is fair to ask.

My initial contribution was £5000 against the deposit then I paid for the kitchen which was £3000.

We have been splitting mortgage payments 50/50 for the last 30 months at £575 a month.

The house was purchased at £142,000. It has just been revalued at £150,000-£160,000.

There is £120,000 left on the mortgage.

How much can I reasonably ask for? I am only looking for what is fair if she is to take full ownership of the house and mortgage by herself.

Thanks.

getmore4less

How much has she put in, how soon was the kitchen done?

Based on full purchase costs not just the house price.

bellaboo86

You need to take into account what your ex can afford as well as what is fair. Also, it is worth taking a slightly smaller share for the whole thing to be done and dusted quicker?

AnotherJoe

I'm sure it could be divided up in numerous other ways but keeping it simple and since the house hasnt gone up that much*, so.....

... there's maybe £30k equity to come out after expenses.
Take your £5k plus half of the £3k kitchen (you used it after all) so thats £6.5k, leaving £23.5k, you split that 50/50 so you take £18.25k she has £11.75k


* eg had the price doubled you might argue you want £10k back for your £5k.

Cobzeh

For a little extra info:

My ex also put £5k and her great grandad gifted another £8k. £18k total was paid initially (£5k of which was mine).

I paid £3k for the kitchen the month we bought the house.

From that point on, everything was split 50/50.

The speed isn't an issue for me. I plan to rent in the mean time and I have already moved out. I am staying on the mortgage for another 6 months so my ex can prove affordability to take me off the mortgage.

@AnotherJoe - That was my thinking also but I didn't want to ask for more than what I was entitled. My ex putting in a larger share to begin with (£5k + £8k) may effect this value slightly thought I would have thought.

AnotherJoe

Cobzeh wrote: »

For a little extra info:

My ex also put £5k and her great grandad gifted another £8k. £18k total was paid initially (£5k of which was mine).

I paid £3k for the kitchen the month we bought the house.

From that point on, everything was split 50/50.

The speed isn't an issue for me. I plan to rent in the mean time and I have already moved out. I am staying on the mortgage for another 6 months so my ex can prove affordability to take me off the mortgage.

@AnotherJoe - That was my thinking also but I didn't want to ask for more than what I was entitled. My ex putting in a larger share to begin with (£5k + £8k) may effect this value slightly thought I would have thought.

Well with that info especially on the other deposits, lets say that the house rose 10%, so takeout your £5k as £5.5k, her £13k (8+5) as £14.3k, add your £1.5k for kitchen thats 6.5+ 14.3 which you each get and that = 20.8, split whatevers left of the equity after removing that.

luffa

Hi, I don't have any advice to offer, I just want to say congrats for being fair. Good luck! :-)

Cobzeh

AnotherJoe wrote: »

Well with that info especially on the other deposits, lets say that the house rose 10%, so takeout your £5k as £5.5k, her £13k (8+5) as £14.3k, add your £1.5k for kitchen thats 6.5+ 14.3 which you each get and that = 20.8, split whatevers left of the equity after removing that.

Thank you for this explanation. That was my original thinking but wanted to make sure it was accurate at least.

getmore4less

How did you split the buying costs?

You really need to start from all up front costs, house buying and kitchen to establish the total cost of purchase.

from what we have so far ignoring the above.

The proper equitable way to do this

£18k deposit split £5k & £13k + £3k kitchen and £124k mortgage split 50:50

You own £70k, OH owns £75k that gives you 48.3% OH 51.7%
(splitting the kitchen costs is ridiculous you put up all the money)

now.

You each owe 1/2 the mortgage debt £60k each

your exit money, your share of the property less the share of the debt.

value £150k * 0.483 - £60k = £12.45k back
value £160k * 0.483 - £60k = £17.28k back


Adjust for the 1/2 of the selling cost is reasonable as that is what you get if you actually sold.

glennstar

AnotherJoe wrote: »

Well with that info especially on the other deposits, lets say that the house rose 10%, so takeout your £5k as £5.5k, her £13k (8+5) as £14.3k, add your £1.5k for kitchen thats 6.5+ 14.3 which you each get and that = 20.8, split what ever's left of the equity after removing that.

Can we also get an understanding on who is primary bread winner, who is doing all the tedious chores, etc? It's all very well the misers amongst you (AJ) diving the cash up but I think you'll find that a Judge will consider total contribution, fiscal and otherwise, in any deliberation.

densol_2

glennstar wrote: »

Can we also get an understanding on who is primary bread winner, who is doing all the tedious chores, etc? It's all very well the misers amongst you (AJ) diving the cash up but I think you'll find that a Judge will consider total contribution, fiscal and otherwise, in any deliberation.

Nonsense ! If the parties are not married and there are no children its based on Land Law and who made what contribution and the intention of the parties ( often set out in the purchase deed )