Owning a house and splitting up?

getmore4less

What do the numbers look like.

Purchase and now,
who paid what(all purchase costs) and how much is left on the mortgage, rough estimate of value etc.


it might mean waiting for the fix to end to do a full financial split if there are ERC but that may be the sensible option for both of you.

TBagpuss

OK, options will be for you to buy her out now, which would mean that you will need to be able to get a mortgage in your sole name to release her from the existing mortgage, and in addition raise a lump sum = to 50% o the equity. In working outthe equity, it is fair to take into account what the costs of sale would be f the house was being sold, and what the ERC will be.
Costs of sale - use 2.5% of the value of the property.

Talk to your existing lender. If you take on the mortgage in your sole name, technically there would be a remortgage but some lenders will waive the ERC in those circumstances so that while srictly speaking you have paid off the old mortgage and taken out a new one, they treat you as if you had simply taken your ex's name off the mortgage, and eveything else stays the same.

If you can't afford to remortgage, then a second option might be to agree with your ex that you will buy her out at a set future date (possibly in 2 years time when the fix ends). If you go down that route, you would need to get a formal separation agreement and new declaration of trust drawn up, explicitly setting out exactly what she wil;l be entitled to and when.

Typically this would be on the basis that you would work out what she would get if the house was sold today (current value less outstanding mortgage less costs of sale, divided by 2) and work that out as a % of the house value. She would then get that % of whatever the house is worth at the date you actually pay her.

This may work if she doesn't need the money immediately to buy a new property and if she is willing to wait.

depending on the figures involved, if you could get a mortgage in your own right but couldn't afford to borrow the extra to pay her her share of the equity, would your family be able to lend you the money to give to her?

cashbackproblems

I don't understand you are not married so there no legal automatic right to half the property.

Sure if you has paid half the mortgage the courts would probably give her a share, but as you paid the deposit and fees I don't think 50-50 is fair.


I personally wouldn't give her a penny (she would have paid rent if not living with you) and let her take on the cost of legal action