Can I be forced to sell?

chelseablue

AnotherJoe wrote: »

What about selling and buying a smaller place, one that costs 70% as much as this house ?

Current house is 3 bedrooms so selling and buying a 2 bed place would be fine for me, I would actually prefer a newer house eventually (current house was built in the late 50's early 60's)

Current house is quite shabby upstairs (we've redecorated the downstairs already),
As I would need to get the best price possible I was hoping to stay there 2-3 years to get the upstairs sorted and then sell.

A 2 bed house would save me about £200 a month on the mortgage so would be beneficial to me to move, I wouldn't expect to live in current house until my son's an adult

chelseablue

Comms69 wrote: »

Does that include buying him out?


Basically he has money tied up in the property, so you need to factor that in too.


Ultimately yes you can be forced to sell the property, but it is unlikely at this stage. More likely is that the property is sold when child reaches adulthood. But the partner would be potentially entitled to a percentage of the property even though you had paid it off. (ie he has lent you the balance)

Do you mean the £190,000? No that's just the figure that the lender will let me take on on my own
Need to work out the figure I would need to give my partner for his share

For the house value do we go on what its worth when he moves out and stops paying?
Or the value when I can take his name off the mortgage or sell?

Comms69

chelseablue wrote: »

Do you mean the £190,000? No that's just the figure that the lender will let me take on on my own
Need to work out the figure I would need to give my partner for his share

For the house value do we go on what its worth when he moves out and stops paying?
Or the value when I can take his name off the mortgage or sell?

If you are buying him out, you would value the property and aim to complete with-in a reasonable period. Minor fluctuations are to be expected.


For example if the price went up 0.5% you wouldn't expect him to claim it, just like if it went down 0.5% wouldn't expect him to pay it.


If you are planning on using his money in the long term, ie simply paying the mortgage and keeping it tied up for years, you should expect any competent solicitor to use a current valuation.


Paying the mortgage doesn't entitle to you solely benefit from it, as he would in all likelihood be restricted to renting whilst you use his savings to build up equity.

chelseablue

Comms69 wrote: »

If you are buying him out, you would value the property and aim to complete with-in a reasonable period. Minor fluctuations are to be expected.


For example if the price went up 0.5% you wouldn't expect him to claim it, just like if it went down 0.5% wouldn't expect him to pay it.


If you are planning on using his money in the long term, ie simply paying the mortgage and keeping it tied up for years, you should expect any competent solicitor to use a current valuation.


Paying the mortgage doesn't entitle to you solely benefit from it, as he would in all likelihood be restricted to renting whilst you use his savings to build up equity.

Thank you, maybe I should start overpaying to get down to £190,000 as quick as I can while also saving up to give him is money.

Just need to work out what he's due

Pixie5740

chelseablue wrote: »

Unfortunately no one I can add.

We are tenants in common with unequal shares, me 70% and him 30%.

I don't mind selling in a few years if I had too, I was just hoping to be able to save up the money instead to pay him what he's owed.

That's not what your declaration of trust says (from a previous thread):

chelseablue wrote: »

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.

You need to be clear about how much you will need to pay your ex in order to buy him out. Overpaying the mortgage will increase the equity and he will legally be entitled to some of that increased equity.

chelseablue

Thank you, after I get back what I put in and he gets what he put in any remaining equity is split 70% to me and 30% to him.

getmore4less

but as was pointed out in the previous thread the Deed was a duff one as they were paying the mortgage 50:50.

chelseablue

getmore4less wrote: »

but as was pointed out in the previous thread the Deed was a duff one as they were paying the mortgage 50:50.

Thank you, the first part of the deed says:

The Co-Owners declare that as from the date of this deed they will hold the Property subject to the Mortgage jointly both legally and beneficially on trust for themselves in the following manner:

As I understand it the mortgage is a joint mortgage in both our name so we are both liable 50/50.

Its the equity that is 70/30, after we each get back what we put in

chelseablue

As at today the figures are:

House value: £430,000

Mortgage o/s: £219,000

So equity is currently £211,000

If we sold the house tomorrow; I get back the £164,000 that I put in, he gets the £6,000 he put in.

£211,000 - £164,000 - £6,000 = £41,000 left

70% of £41,000 is £28,700 which would go to me

Which leaves £12,300 that would be his

£6,000 + £12,300 = £18,300

If that's the correct way of working it out I'd need to give him £18,300 to buy him out?

My figures are basic, I haven't included any Estate Agents fees or solicitors fees

fewcloudy

I'm not sure I understand? Do you pay 70% of the mortgage payment due each month and he only pays 30%? I'm assuming that must be the case, because if it was 50% each then I don't think I'd be happy only getting 30% back!


fc