Ex on the mortgage

vickyb31

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PeacefulWaters

vickyb31 wrote: »

I understand the rental argument, but I do feel it is very murky! If as she may argue, we "rented" the property from her, would she have not had to declare her rental income less the expenses to HMRC? As I understand that she wouldn't have to declare it on her tax return but wouldn't they have to be informed? Which then begs the question, would any profit made be subject to Capital Gains Tax as seeing as she is renting it out and is no longer her residence but now an investment? I'm not trying to be difficult it is a genuine question. V x

You're making it even murkier.

Find some common ground. Get an agreement sorted and get the transaction done.

silvercar

vickyb31 wrote: »

I understand the rental argument, but I do feel it is very murky! If as she may argue, we "rented" the property from her, would she have not had to declare her rental income less the expenses to HMRC? As I understand that she wouldn't have to declare it on her tax return but wouldn't they have to be informed? Which then begs the question, would any profit made be subject to Capital Gains Tax seeing as she is renting it out and is no longer her residence but now an investment? I'm not trying to be difficult it is a genuine question. V x

Yes, but no, but yes.

This is all theoretical. She didn't actually get any rent, so doesn't have any tax to pay. Instead your partner paid all the mortgage. Therefore no rental income changed hands and therefore no tax.

She didn't rent it out (otherwise you would have a tenancy agreement and landlord inspections....) however if the property was sold she would have a potential capital gains tax on the profit.
However, you are talking about her agreeing a transfer of equity and mortgage release for her, which is different.

Raising the possibility of her paying tax at this point is NOT going to encourage her to agree. In any case, her tax affairs are nothing to do with you.

FBaby

unfortunately her parting verbal shot was that she wanted nothing to do with the house. Sadly nothing in writing!

This doesn't mean anything. It could mean that she wants nothing to do with it in terms of maintenance rather than investment.

We made her an offer on a messenger service, she agreed to it,

When you say agreed to the offer, was it a case of him saying 'I'll give you X for you signing over your share', and she responded with 'yes, I agree this offer, send the papers and I will sign'?

If so, the issue is purely managing to get a hold of her. She might be very busy and not too bothered, even though she is still happy with the agreement, or she hasn't been receiving the information from the address she provided. How long has it been since you've been in contact with her? Could she be on holiday?

Diary

vickyb31 wrote: »

Hi there,
I'm just looking for a bit of advice!
My partner purchased a house with his ex in 2005 and they separated in early 2009. She put down a deposit of approx £8k and he took out home improvement loans for around £17.5k Since leaving she hasn't made any form of contribution to the mortgage and they have had no contact until this year when my partner messaged her to try to buy her out of the house. Surprisingly she agreed, and we put the wheels in motion for us to buy her out. However, she so far has not returned the signed transfer documents and hasn't replied to the follow up message to see if she had received them.
I fear that this could get messy.
Can anyone advise how we can go about forcing the sale.
We live there with our young son, but are effectively trapped there, we would like to move at some point.
It is a very frustrating situation as we are fighting a brick wall! She has moved on, we have moved on whilst having also to stand still. We just feel very trapped by her. If, and I am hoping it doesn't, the matter went to court, would it be reasonable to offer her 50% of the equity, less 50% of her mortgage liability payments? I know we live there, but it certainly isn't out of choice, we have HAD to live there! Hope someone can give a bit of friendly advice, this is starting to eat away at me!

This will be an unpopular view.

Are you sure your boyfriend actually wants to sell the house? I see these sort of posts all the time - the aggrieved boy/girlfriend of someone who wanted to have a mortgage with someone else who is now an ex trying to force a sale that really in truth has little to do with them.

leespot

vickyb31 wrote: »

Hi TBagpuss, unfortunately her parting verbal shot was that she wanted nothing to do with the house. Sadly nothing in writing!
I can understand the "rent" argument and if the roles were reversed would probably use it if I could, however, we have literally been forced to live there. We ideally want to resolve this matter and then move and all the while she left and went on trips around the world, without a care towards her financial responsibilities!
When our son was about 3 we had to move for about a year as the house is not suitable for a toddler. It absolutely crucified us financially, but we couldn't live in the house with all of those stairs and an unsteady 3 years old. As the house isn't on a B2L mortgage we had to suffer both the costs. It wasn't pretty on my purse!
We made her an offer on a messenger service, she agreed to it, we paid for the solicitors fees to draw it all up, and now nothing! I just don't know what she wants!
I will look at the ToLATA claim, and am seeing the CAB on Tuesday. We just want to move on, but she is making it impossible, how is that fair? Seems very mean to me. I know there are 2 sides to a split but you would have thought that 8 1/2 years on the sadness/bitterness would have subsided!

I find this bit quite odd to be honest. You moved out for year - like the stairs would have been less of an issue for a 4 year old?? You could've lived in the house, but you chose not to.

It might not have been pretty on your purse, but those costs are down to you, you can't expect to quantify any rental loss incurred in the agreement with the ex.

vickyb31

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vickyb31

leespot wrote: »

I find this bit quite odd to be honest. You moved out for year - like the stairs would have been less of an issue for a 4 year old?? You could've lived in the house, but you chose not to.

It might not have been pretty on your purse, but those costs are down to you, you can't expect to quantify any rental loss incurred in the agreement with the ex.

I'm not trying to claim anything from her at all, I'm trying to press home how trapped we are. If you saw the house you'd see what I mean. I don't want anything from her. We are happy to pay the solicitors costs, we are happy to buy her out. It is not unreasonable to want to cut ties with a person after 8 1/2 years.

gettingtheresometime

why don't your partner write to his ex, pointing out (nicely) that as she's currently on the mortgage & deeds if she did want to buy another property she would incur the higher rate stamp duty as well as being financially tied to him?

Sometimes you have to point out to people what's in it for them rather than what's in it for you

vickyb31

gettingtheresometime wrote: »

why don't your partner write to his ex, pointing out (nicely) that as she's currently on the mortgage & deeds if she did want to buy another property she would incur the higher rate stamp duty as well as being financially tied to him?

Sometimes you have to point out to people what's in it for them rather than what's in it for you

Good thinking! We have decided to get a bit of legal advice, see where we do or don't stand and hope that it all comes out in the wash. It will have to be sorted one day V xx And now I think I'll be off and enjoy the weekend