Buying out my ex - am I being screwed over?

Stanner1987

Any help would be enormously appreciated.

I have recently split up with my girlfriend and we have a mortgage on out house which renders ownership of the house 75/25 in my favour. I put down the entire deposit of 50% of the value. I have then spent a further £15k on renovations. Following a recent valuation from a local estate agent, it appears that there is now £40k equity following the renovations. My ex is leaving the house and we need to put the mortgage in my name.

The way we’ve been looking at it is that we take the £40k equity figure subtract the £15k I spent on the property and then 25% of the renaming figure is given to my ex in addition to the £3k she has contributed to the mortgage in the time living in the house. The sole ownership would then go straight over to me.

The problem is that paying this figure off to my ex would wipe out my savings and in all honesty, it seems a joke that she should walk away from this having committed nothing other than monthly payments, with a wedge of cash.

If anyone can explain to me whether the way we are looking at it is correct or not, that would be amazing. Anything I can do to limit what I have to pay out will be a great help.

Thanks!

Alter_ego

Do you have enough income to mortgage in your name only? If not all your calculations are acedemic.

isplumm

Hi

I don't disagree with taking the £40k potential profit, removing your £15k and then giving her 25% of that - giving her about £6k.

Not so sure about the £3k - would you not need to knock off your mortgage payments as well?

Mark

getmore4less

Stanner1987 wrote: »

Any help would be enormously appreciated.

I have recently split up with my girlfriend and we have a mortgage on out house which renders ownership of the house 75/25 in my favour. I put down the entire deposit of 50% of the value. I have then spent a further £15k on renovations. Following a recent valuation from a local estate agent, it appears that there is now £40k equity following the renovations. My ex is leaving the house and we need to put the mortgage in my name.

The way we’ve been looking at it is that we take the £40k equity figure subtract the £15k I spent on the property and then 25% of the renaming figure is given to my ex in addition to the £3k she has contributed to the mortgage in the time living in the house. The sole ownership would then go straight over to me.

The problem is that paying this figure off to my ex would wipe out my savings and in all honesty, it seems a joke that she should walk away from this having committed nothing other than monthly payments, with a wedge of cash.

If anyone can explain to me whether the way we are looking at it is correct or not, that would be amazing. Anything I can do to limit what I have to pay out will be a great help.

Thanks!

What was the original agreement?

that's what you go with no matter how wrong/bad it was.


If you put down 50% and split the mortgage 50:50 to get the 75%:25% split

Then the split is on value before you take off 1/2 the mortgage off each of your shares.

Then you should be paying the maintenance and improvements at 75%:25% to keep the split at 75%:25%

When was the £15k spent as that can make a difference if start or end we can do the different calculation.

Lets go with the simplest approach that you just lent her share of the £15k so she owes you £3750

the way to work it out is she gets 25% of the full value takes off 1/2 the mortgage and £3750 that's what you owe her

That is how you would have done is using equity based shares.


if your agreement is 75%:25% of the equity that changes things.

Need the purchase value and mortgage details.

Mortgage contributions are not relevant just the capital paid off is and that is already counted in any calculations.