Buying out my ex girlfriend from our house.

andy50027

Hi everyone.
Long term member, regular visitor but only occasional poster.

Question for you on house ownership / profit.

Basically to cut a long story short me and my girlfriend have split up.

We’re owners of a house within a housing association.
It’s an ownership of 60% mortgage and 40% rent to the association.
The value at purchase (in 2010) was (all prices approx for ease) £200k. We borrowed £100k with a £13k deposit.
It has been valued at £300k now.

£100k value increase to the 60% is £60k. We always split everything half and half so profits will be roughly £30k each.

My parents have offered me some money to buy her out, I’m in bits over the split and I simply can’t afford to rent elsewhere (Surrey prices) and a location change is the only option (job and house move to a great distance) which I really can’t face at the moment.

The house we’re in is a good £150 a month cheaper to maintain than a basic flat round here. And this is the only way I can afford to live here.

What would be a fair amount to offer her do you think? Considering we’d lose quite a bit in fees and disposal / storage of our stuff.
Obviously the 7 years we’ve been here will have dropped the mortgage by a bit as well.
I don’t want to screw her over but neither do I want to shootbmyself in the foot.

I hope this makes sense!

Thanks for reading / any advice.

Pixie5740

To which fees are you referring? Why would you be storing and disposing of your belongings? Wouldn't you just keep what you want whilst she takes what she wants? Are you going to get all the furniture, kitchen appliances, etc since you will be the one remaining in the property?

If you've always gone halves then splitting the equity 50/50 is the fairest things to do. As for who pay which fees that depends on what the fees are for.

Tom99

[FONT=Verdana, sans-serif]Offer ((£300k *60%) less outstanding mortgage))/2, ie 50% of the current equity.[/FONT]
[FONT=Verdana, sans-serif]Split any fee incurred 50/50 but not the fees you are not actually paying, such as sale fees since you are both benefiting from not having to pay these.[/FONT]
[FONT=Verdana, sans-serif]That would be fair to both sides.[/FONT]

andy50027

Hi. Sorry I should have made it a bit clearer.

I!!!8217;m not really sleeping since this and this was written in my 0100-0500 awake worrying about what I!!!8217;m going to do stage!

Basically I!!!8217;d have to move into my parents if I couldn!!!8217;t buy her out.
I couldn!!!8217;t cope with having to move house , area and jobs in one hit so to keep me going I!!!8217;d go there to keep some normality.

Storage or disposal would be for what I couldn!!!8217;t take to theirs that she doesn!!!8217;t want / need. Basically everything of mine bar clothes.

What she did take I!!!8217;d have to replace so I!!!8217;d need to factor this into the price.
Fees, I guess they!!!8217;d be a mortgage cancellation fee we!!!8217;d pay. Probably less than the fee to just take her off and keep my name on.

We!!!8217;ve currently paid £10k off the £100k mortgage so it!!!8217;s rpughly £90k.

So 60% of the £300k is £180k value to us. £180k- £90k remaining mortgage is £90k.
Half of that is £45k minus what we can agree on?

andy50027

^^^^

Sorry for the !!!!8724s above.
Tried editing them out but it!!!8217;s not worked!

Auto correct I guess!

saajan_12

andy50027 wrote: »

Hi. Sorry I should have made it a bit clearer.

Im not really sleeping since this and this was written in my 0100-0500 awake worrying about what Im going to do stage!

Basically Id have to move into my parents if I couldnt buy her out.
I couldnt cope with having to move house , area and jobs in one hit so to keep me going Id go there to keep some normality.

Storage or disposal would be for what I couldnt take to theirs that she doesnt want / need. Basically everything of mine bar clothes. - so this is a separate option, don't mix up the cost of storage with fees if you DO buy her out.

What she did take Id have to replace so Id need to factor this into the price. - offset by what you keep surely.. plus she'd have transport costs for any furniture/appliances she takes.
Fees, I guess theyd be a mortgage cancellation fee wed pay. - offset by her new tenancy fees (referencing, agreement drafting, etc) or her new purchase costs (SDLT, solicitors, surveys, mortgage fees.. )Probably less than the fee to just take her off and keep my name on. - yu need to check with your lender, you may need to apply for a new mortgage in your name and use that to pay off the joint one, can't always just 'take her name off'. Also subject to whether you can pass affordability for the full mortgage alone.

Weve currently paid £10k off the £100k mortgage so its rpughly £90k.

So 60% of the £300k is £180k value to us. £180k- £90k remaining mortgage is £90k.
Half of that is £45k minus what we can agree on?

Split out scenarios and related costs
1) Sell property, split equity 50/50, each of you deal with your own storage/removals/new property fees

2) You buy her out, pay her 50% of equity, split all fees (solicitors, mortgage early repayment charge, your new mortgage fee, her new tenancy / purchase costs, her removals costs..)

xylophone

I'm not really sleeping since this and this was written in my 0100-0500 awake worrying about what I'm going to do stage!

Basically I'd have to move into my parents if I couldn't buy her out.
I couldn't cope with having to move house , area and jobs in one hit so to keep me going I'd go there to keep some normality.

Storage or disposal would be for what I couldn't take to theirs that she doesn't want / need. Basically everything of mine bar clothes.

What she did take I'd have to replace so I'd need to factor this into the price.
Fees, I guess there'd be a mortgage cancellation fee we'd pay. Probably less than the fee to just take her off and keep my name on.

We've currently paid £10k off the £100k mortgage so it's roughly £90k.

So 60% of the £300k is £180k value to us. £180k- £90k remaining mortgage is £90k.

Half of that is £45k minus what we can agree on?

It seems to me that she should pay half of the legal fees and receive half of the equity - with regard to goods and chattels, you'll need to reach an agreement as to who keeps what.

HampshireH

Just out of interest does she want to move out?

What if she offered to buy you out or declines.

I imagine the upheaval for her is equal to that for you (regardless of the circumstances of the relationship breakdown)

Hopefully this is an option you have discussed and its relatively amicable

andy50027

Brilliant. Cheers.

All the above makes it all a bit clearer in my head now.
I just wasn!!!8217;t sure to offer her half the price increase or have to include other prices

I did consider I might have to apply for a new mortgage.
That may be a stumbling block but if I don!!!8217;t try I won!!!8217;t know!

For your ref above, she wants out. Selling is her only choice.
So it!!!8217;s all or nothing my end. Not sure her plans to be honest, she!!!8217;s just flipped and wants out.

Sorry again for the !!!!and numbers.

I!!!8217;m doing a quick reply.

TBagpuss

You work out what she would get if the hosue were sold. So it may be reasonable to take into account about 2% of the value of the house for notional costs ofselling.

So -
Your share of the house = £180,000
less mortgage £ 90,000
less notional costs of sale £ 6,000
Balance £ 84,000

So you pay her £42,000 and you pay the costs of remortgaging and transferring the property into your name. If there are any early redemption charges to pay on the mortgage include them in the working out what the figure is (i.e. the figure you take off the property value for mortgage is mortgage including any ERCs)

home contents you divide between you. Neither of you pays the other anything. Each of you will then up up with some furniture and the prospect of having to replace some stuff as and when you can afford it.

If she doesn't want any of the home contents and you do, then it is reasonable for you to 'buy' them from her - but that would be at their current nd hand value, not replacement value.

andy50027

Brilliant. Thank you all.

That’s how I wanted it put out figure wise and had pretty much figured out the costs, just wanted it confirming!

I’ll put it to her the next time we see each other.

Although she says about 10 words to me a week that might be hard!

Does Martin Lewis also have an excellent relationship page per chance????
I probably need to sighn Up for that if he does!!!!