Seperation of cohabitees - HELP

silvercar

Whatever anyone thinks is reasonable should stand up the calculations based on little change in the value as well as based on a large increase in value and if the property had moved into negative equity.

There is a lot of circumstancial calculations too. Was your ex moving in rather than paying rent? Or was the move with a view to become a joint equity partner?

In an area where house prices have increased massively, by living with you rather than investing in their own property, someone risks missing out massively on property growth.

FBaby

Did she pay you by direct debit? If so, what did she call it? If it is 'payment towards mortgage', she will have a much stronger difference than if it just says 'contribution towards gas and electricity'.

sammyjammy

16102016 wrote: »

Also the fixed deal is until June 2019, I DONT want to sell the property, and it would cost me £6.6k to change my fixed rate so not worth it for a lower rate

How you raise the funds isn't really the issue though is it? If you agree your ex should be given some money then you'll need to find some other way of paying it.

getmore4less

people over complicate how this is done properly with equitable shares

The equitable way to do this is to work out what % of the house they were funding.

deposit yours, mortgage funding split.

the actual cash contribution needs to be split into purchase related and running cost related, do not mix them.

once you factor out the running costs you will have the bit left for the purchase side of things.

using an example starting at £100k(total cost to buy not purchase price).

£20k deposit £80k mortgage paid 70% 30%

you own £76k they own £24k

New value(estimated funds from a sale after costs)
£120k they are due 120 * 24/100 = £28800

From that they owe 30% of the remaining debt.

say that has gone down to £72k they owe £21600

net owed is £7200.

That's today. if they stop contributing, but you want to wait to pay them they own that part of the house and it grows with future rises in value till you buy them out.


Stick your real numbers in and see where you end up.

silvercar

Surely the intention when moving in counts for something. new partner moves in to your home and makes a contribution to the running costs of the home plus a bit of the mortgage, thus saving them rent elsewhere and the benefit of living together as a couple and the cost savings of living as a couple instead of 2 singletons. Relationship breaks down, partner moves out and no longer saves on paying rent elsewhere. There is an argument for saying that no payment is due.

16102016

Thanks everyone - settlement agreed

fromtheshires

what did you settle for?

saajan_12

16102016 wrote: »

Wow you lost me

So deposit was me - ex gets none of that
8.2k paid off - 30% being 2.5k ex is entitled to claim back

Whats the 20k bit? Whats the total workings out? Didnt get your sum of 30% x whatever..... Thanks for your help

Would be much easier if you gave the purchase price, so we can give numbers rather than formulas. Let me try to rephrase: You say the gain is 20k.. so as a percentage that's

{20k/purchase price}

Your partner's contribution is 30% x 8.2k. So your partner's share of the profit should be

30% x 8.2k x {20k/purchase price}
= 49200 k / purchase price

e.g. if the purchase price was 200k making a 10% gain in value, then your partner gets

• the original 30% x 8.2k = £2460
• plus 10% profit 30% x 8.2k x 20k / 200k = 2460 x 10% = £246

That way you both get a 10% increase in your contributions.

So total £2706

Edit: I see you've come to a settlement.. do tell us what you agreed!