Repaying shared equity when I'm leaving the property?

Francesco2017

I am in a situation with my Ex (not married). We bought a property together with a government shared equity scheme. We have now broken up, I have moved out and my mortgage payments into the property have been returned. My ex is now living in the property and will take on sole ownership. The property is in negative equity. The programme we enrolled in states that to remortgage under just my Ex's name they need the shared equity repaid. I no longer have a claim to the property as agreed between us once my name is off the mortgage as my mortgage payments were returned. My ex wishes me to pay half the outstanding shared equity as remortgaging for the full amount in one name won't be allowed because of the negative equity. This doesn't seem correct to me as then I am paying out money for my ex only to benefit and i just lose money to take my name off the mortgage - advice please?

No children involved and all other asset division (property/cars/furniture) has been agreed.

G_M

Surely if the value of the property has gone down so that it's in negative equity, you should share half the pain just as you should have benefitted from half the profit if the value had increased.

[Deleted User]

Paying half the shared equity loss is very fair. There were two of you, she's very generously taken on the total mortgage and allowed you to sign off the mortgage.., totally fair you should 'share' the loss in equity equally.

Francesco2017

deannatrois wrote: »

Paying half the shared equity loss is very fair. There were two of you, she's very generously taken on the total mortgage and allowed you to sign off the mortgage.., totally fair you should 'share' the loss in equity equally.

Even if my half of the shared equity is more than I actually put into the mortgage up until our agreed stop date?

Pixie5740

???

If the value had risen and the equity was more than you'd paid in you'd want a share of that so it works the same way if the value falls.

What are the alternatives?

Move out but remain on the mortgage with you ex indefinitely hoping the property eventually rises in value?

Sell the property where you and your ex will need to cover the negative shortfall?

Continue living with your ex until such time the property is no longer in negative equity.

You move in and your ex moved out. You try to get a mortgage in your name only with you and your ex covering the negative equity shortfall.

saajan_12

When you say "repay half the shared equity" do you mean the loss in value of the government's stake or the value of the government's equity?

I'd agree you should pay the former, but not the latter as that equity would presumably go to your partner.

This might be easier if you gave some numbers:
- Property purchase price
- Your/partner's deposit
- Government's share / loan
- Mortgage amount
- Mortgage monthly payments (and split between you and partner)
- Current property value