Ex buying my equity

Gra76

My STBX is in the process of buying out my equity so I sign the house over to her.

At the moment she is unable to give me the full amount, but she has an AIP to buy out most of the equity.

We've agreed that as part of the divorce we will draw up a clean break agreement in the next few months and that there will be something in there to state that she will pay me the balance of he equity subject to there being the equity available in the property, in 7 years time or when she sells the house, whichever comes sooner.

Figures if it helps:

House has been valued by 2 estate agents @ £300k
Remaining mortgage is £101k
She has an AIP for £180k

To get things rolling a bit quicker and to let her feel like she's got one over on my I lowered my requested 50% equity from £99.5k to £95k

She says she will give me £79k now with the balance of £16k in 7 years or whenever the house is sold (whichever comes sooner).

If this is written into the clean break agreement and she decides to try and get out of it in 7 years time where do I stand? Short of an epic collapse in the housing market there should still be acres of equity left on the property and in 7 years time she should easily have cleared enough off the mortgage to pay me if she remortgages.

I assume because the agreement will be written into a legal document I'll be entitled to pursue her for it through the courts if necessary?

Am I missing something or is it as straight forward as it sounds to me?

Thrugelmir

Gra76 wrote: »

I assume because the agreement will be written into a legal document I'll be entitled to pursue her for it through the courts if necessary?

Am I missing something or is it as straight forward as it sounds to me?

That maybe the course of action you'll need to pursue.

An AIP doesn't guarantee a mortgage. The valuation for mortgage purposes could potentially come in lower than that given by the EA's. .

LRmortgage

You could potentially take a second legal charge over the property to secure your outstanding money against the house.

Thrugelmir

LRmortgage wrote: »

You could potentially take a second legal charge over the property to secure your outstanding money against the house.

First charge lender has to agree to this.

Gra76

Thanks guys, I'll look into the possibility of getting a legal charge on the house as I've got a sneaky feeling my STBX is promising something she has no intention of delivering

robatwork

Gra76 wrote: »

Thanks guys, I'll look into the possibility of getting a legal charge on the house as I've got a sneaky feeling my STBX is promising something she has no intention of delivering

This is what's known as a messy break up.

Personally I would accept the full amount or nothing, and make a clean break.

MoneyGeoff

If you are going try to get a charge you may as well just remain on the deeds but 95% to her, 5% to you. That way you'll probably get some growth instead of giving her an interest free loan for 7 years.