Buying someone out?

chelseablue

Not that it matters to anyone on here but this situation isn't actually happening to me I was having a discussion yesterday with my cousin


If me and my partner were to split up, how do I work out how much he would be entitled to if I were to buy him out?


We have a trust deed saying we own the house 70% me and 30% him


He put in £6,000 deposit and since we bought it the value has risen approx. £28,000 (according to the Nationwide hpi calculator)

G_M

chelseablue wrote: »

If me and my partner were to split up, how do I work out how much he would be entitled to if I were to buy him out?

We have a trust deed saying we own the house 70% me and 30% him

1) You get the property valued ( say £200,000)

2) You ask your mortgage lender how much is still due on the mortgage ie the redemption amount (say £100,000)

3) you calculate the equity (£200K - 100K = £100K)

4) You pay him his share of the equity (£30K)

5) You pay off the existing mortgage (£100K) and take out a new one in your sole name for whatever amount is needed. (eg £130K to cover the old mortgage and your ex's share).

chelseablue

G_M wrote: »

1) You get the property valued ( say £200,000) £428,000

2) You ask your mortgage lender how much is still due on the mortgage ie the redemption amount (say £100,000) £228,000

3) you calculate the equity (£200K - 100K = £100K) £200,000

4) You pay him his share of the equity (£30K) £60,000

5) You pay off the existing mortgage (£100K) and take out a new one in your sole name for whatever amount is needed. (eg £130K to cover the old mortgage and your ex's share).

£60,000 seems a lot to have to give after less than a year of ownership and he only put £6,000 in, that's what I call a great return :rotfl:


I thought I would have to pay his £6k he put in plus 30% of the rise in value since we bought it?

Pixie5740

chelseablue wrote: »

I thought I would have to pay his £6k he put in plus 30% of the rise in value since we bought it?

Why would you think that if your deed of trust says...

chelseablue wrote: »

We have a trust deed saying we own the house 70% me and 30% him

chelseablue

Pixie5740 wrote: »

Why would you think that if your deed of trust says...

Im not entirely sure haha, me and my cousin were having a discussion yesterday trying to work it out.


60k just seems a lot after less than a year

G_M

Pixie5740 wrote: »

Why would you think that if your deed of trust says...

Indeed. If the intention had been for the respective deposit amounts to be taken into account, the Deed would say so.

The Deed refers to percentage ownership of the property, not % increase in value.

chelseablue

I put in £164,000


Mortgage payment is 50/50

G_M

chelseablue wrote: »

I put in £164,000


Mortgage payment is 50/50

Both irrelevant if the Deed says:

we own the house 70% me and 30% him

but it might be worth quoting the exact wording to be sure.

Pixie5740

What is the exact wording of the Deed of Trust?

chelseablue

This is what it says:

1. The net sale proceeds shall be paid as to:
   
   
   1. The fixed sum of £164,000.00 to the First Owner
   2. The fixed sum of £6,000.00 to the Second Owner.
   3. The balance being divided between the Co-Owners by paying the First Owners share to the First Owner and the Second Owners Share to the Second Owner.

G_M

Well that is entirely different to what you initially told us!

Sigh!

and it's not even the entire quote. You want help? Quote the whole thing- preferably in your first post!

(bye bye)