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Advice In Case Of Seperation Dividing The House
mbc0
Posts: 15 Forumite
Hi,
I am sorry if this is not the correct place to ask this but I am hoping someone can offer any advice please?
My Partner and I live in a house we/she purchased in August 2016.
The Purchase was made up with a mortgage on her side and a loan from her parents.
November 2017 we took a joint 2nd charge to repay her parents
We have always repaid the mortgage, 2nd Charge & all bills from a joint account that we both pay into every month
September 2018 we are taking out a joint mortgage to replace the sole mortgage in her name and the joint 2nd charge
Obviously my partner has invested more funds into the house and it is only fair that is reflected should we seperate and have to sell.
Can anyone advise on the best way to move forward on this? We purchased the property for £375K (completely needs renovating which I am currently doing) the property value is about £400K and my partner put approx £130K deposit so I feel the fairest way would be that she should have a certain percentage of ownership in case things went wrong?
Any advice/pointers would be really appreciated!!
I am sorry if this is not the correct place to ask this but I am hoping someone can offer any advice please?
My Partner and I live in a house we/she purchased in August 2016.
The Purchase was made up with a mortgage on her side and a loan from her parents.
November 2017 we took a joint 2nd charge to repay her parents
We have always repaid the mortgage, 2nd Charge & all bills from a joint account that we both pay into every month
September 2018 we are taking out a joint mortgage to replace the sole mortgage in her name and the joint 2nd charge
Obviously my partner has invested more funds into the house and it is only fair that is reflected should we seperate and have to sell.
Can anyone advise on the best way to move forward on this? We purchased the property for £375K (completely needs renovating which I am currently doing) the property value is about £400K and my partner put approx £130K deposit so I feel the fairest way would be that she should have a certain percentage of ownership in case things went wrong?
Any advice/pointers would be really appreciated!!
0
Comments
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Was the £130K the deposit or in addition to the deposit? If the latter, at the start she "owned" £130K+£245K/2 and you owned £245K/2. So the ownership before betterment is 67% hers and 33% yours which I would say is the starting point for discussion. Whether you want to charge for your work on the renovation is more difficult - perhaps she is doing other useful things whilst you renovate? Also it would be impossible to say how much any increase in value is due to the renovation amd how much it would have been without renovation.
I very much agree that you should sort this out now rather have an expensive and stressful battle should the worst happen.0 -
You can own as tenants in common.
You can then own shares ! Say 66/340 -
Deduct the deposit then split the remainder 50/50. Both of you then benefit from any uplift in the value of the property.
Was your mortgage lender aware that it was a loan not a gift?0
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