Ex's Loan Obligations?

Apollo13

Morning all, first time posting, hope you can help?


I own a house and lived with my ex partner for around 4 years. In around 2015 my partner took out a loan, and that loan paid for double glazing throughout the house, some plastering and some new carpets, as well as a deposit on a new car which was for my partner only. In 2017 we ended our relationship and he moved out. Upon moving out he asked me to repay him for the money that he had put into the house. I naturally agreed and we agreed on a figure of £4000. He understood that I couldn't afford to pay it off in one lump sum, so he was happy with £100 a month. I have been paying the £100 for the past year and a half and a little bit extra here and there, which has came to £2000 so far.


Before Christmas just gone (2018), he came to me and asked me to take out a zero balance transfer of his remaining loan so that I can take away the debt on his loan in order for him to increase the chances of getting his own mortgage. I didn't give an answer and he asked me to think about it.


Luckily we are amicable, however I'm being told by friends and family that he may be taking advantage of my 'kind nature' and that I'm being a bit naïve around the whole situation.


My questions are:


1. Firstly, the £4000 figure, is of full value of what was spent. If he has had at least a year and a half of benefitting from the improvements, would it still be right to pay 'full whack'?


2. Am I under any obligation to take the debt on from his loan?


I hate conflict, and I completely understand that he put money into MY house, which I could benefit from when I sell. However, if it is the case that I'm being 'too nice' here, then I feel I need to act on it.


Any help would be hugely appreciated.


Thank you

Comms69

Apollo13 wrote: »

Morning all, first time posting, hope you can help?


I own a house and lived with my ex partner for around 4 years. - did your ex pay anything towards the mortgage? In around 2015 my partner took out a loan, and that loan paid for double glazing throughout the house, some plastering and some new carpets - so your ex contributed to improvements in the property. , as well as a deposit on a new car which was for my partner only. In 2017 we ended our relationship and he moved out. Upon moving out he asked me to repay him for the money that he had put into the house. I naturally agreed and we agreed on a figure of £4000. He understood that I couldn't afford to pay it off in one lump sum, so he was happy with £100 a month. I have been paying the £100 for the past year and a half and a little bit extra here and there, which has came to £2000 so far. - excellent


Before Christmas just gone (2018), he came to me and asked me to take out a zero balance transfer of his remaining loan so that I can take away the debt on his loan in order for him to increase the chances of getting his own mortgage. I didn't give an answer and he asked me to think about it. - seemed reasonable, but you aren't obliged to do this.


Luckily we are amicable, however I'm being told by friends and family that he may be taking advantage of my 'kind nature' and that I'm being a bit naïve around the whole situation. - usually sensible to ignore friends and family in such situations. They rarely understand the law and are usually better as a shoulder to cry on, if necessary


My questions are:


1. Firstly, the £4000 figure, is of full value of what was spent. If he has had at least a year and a half of benefitting from the improvements, would it still be right to pay 'full whack'? - It's what you agreed. It could be argued that the improvements actually increased the value of the property by more than the amount spent. IE he may have paid £3k, but the value increased by 5k. You benefitted from the improvements as your stake in the property rose.


2. Am I under any obligation to take the debt on from his loan? - If you mean are you obliged to repay the outstanding balance, yes you are. Partly because you have agreed to do so and made payments. Partly because he could argue in court that he has a a beneficial interest in the property - ultimately, though it's unlikely, he could force a sale of the property. (this also includes any payments towards the mortgage)


I hate conflict, and I completely understand that he put money into MY house, which I could benefit from when I sell. However, if it is the case that I'm being 'too nice' here, then I feel I need to act on it.


Any help would be hugely appreciated.


Thank you

I suggest sticking to your agreement of £100 per month to repay the loan. He can repay the loan himself if it's affecting his mortgage application and your money would then pay towards a holiday or whatever he wants to spend it on

Red-Squirrel_2

Can you get a credit card with 0% on a money transfer for £2000?

If you can, I probably would. You have agreed that you owe this money so you can’t really change your mind at the halfway point, and morally I think it’s fair for you to pay. Double glazing will last decades, you are getting the vast majority of the benefit of what he spent.

How would you feel if a loan you were repaying that had been spent on improving somebody else’s home was affecting your ability to move on and get your own home and the security etc. that brings?

Apollo13

Thanks for the reply

Great info thanks! Yes he paid towards the mortgage by paying into my bank account.

Totally agree with what you've said.

Thanks for your help!

Apollo13

Thanks for the reply. Great help.

Thank you

Comms69

Apollo13 wrote: »

Thanks for the reply

Great info thanks! Yes he paid towards the mortgage by paying into my bank account.

Totally agree with what you've said.

Thanks for your help!

In which case he has a potential claim on those payments too (or the equity element of those payments) - worth considering when you decide how to handle things.

Red-Squirrel_2

Apollo13 wrote: »

Thanks for the reply

Great info thanks! Yes he paid towards the mortgage by paying into my bank account.

Totally agree with what you've said.

Thanks for your help!

Then you’re lucky that he only wants his money back for the improvements and not a share of the house.

Gavin83

Your ex is actually being very generous here. Given that he paid towards the mortgage and paid for home improvements he would have built up a beneficial interest in the property. Depending on what, if any increase in the property value has occurred during this time what he's actually entitled to could be a lot more.

I'm not entirely sure what you're asking here. If you're asking if you actually need to pay this money back then yes, you do. If you're asking if you need to take on the debt on an interest free card then no, you don't. However you should probably consider the above. Either he's being reasonable or he doesn't know his rights. Should he consult a solicitor on this matter it's likely they'll advise him what he's entitled to.

TBagpuss

I think your ex's request is reasonable.
He could have made a claim against the property, given the contributions he made, and whether or not that succeeded, it would have been expensive and stressful. Taking into account his other contributions, it sounds as though he paid more than £4,000 in total, and given that, and that you agreed a year and a half ago that you would pay £4,000, it seems unreasonable to try to renegotiate now.

I think if you can get a loan or CC transfer to repay the outstanding balance now, rather than over another year and half , then it would be reasonable for you to do so. If you can't, are you able to look into borrowing at least a proportion of it so you can pay the balance more quickly, and reduce the total debt to him. Even if you need to get a loan rather than a 0% , it wouldn't be unreasonable after all, you'll be no worse off than if you'd borrowed the money yourself from day one, rather than him doing so,

Primrose

I think if you can clear his loan it would be an honourable thing to do, given that you will have the benefit of the double glazed windows permanently into the future improving the value of your house. Also you are fortunate that he is not asking for some kind of recompense for the mortgage money he has paid.


I think agreeing to his request will help keep the relationship amicable, even as you go your separate ways and going forward that is something that money can't buy.

davidwood681

All sounded fair until you hinted at not paying him back.