Unequal Ownership

TopOsprey

Bought a house with my partner in 2012. Unequal ownership 60% mine, 40% hers due to my contribution towards the deposit. No declaration of trust.
As it happens in life, now we want to split up...

Will I get 60% of the house value (take away the outstanding mortgage), or should prepare myself for a long battle in court?

Exodi

So to go through the motions, you say there was no declaration of trust but do you hold the property as tenants in common or as joint tenants?

If you hold it as joint tenants then you are both legally entitled to half the equity as you have no legal agreement that says otherwise. I would also scrap the idea of 'a long battle in court' if she doesn't intend to play ball as this will almost certainly be a fruitless endeavour. The biggest issue you are now about to face is actually selling the house.

Do either of you live in the property? Did you break up on ok-ish terms or do you think she will chance it?

TopOsprey

Hi,

Thanks for your prompt response.
As per my lawyer's letter (in front of me) a few extracts:

"I note you have requested the Transfer Deed to reflect 60% of the property is to be held by MR X, with the remaining 40% to be held by Ms Y."

"A restriction will be placed on the register to the property following completion of your purchase, just as it would if a Declaration of Trust was prepared"

Exodi

Hi TopOsprey,

Well assuming the solicitor has made good on their promise and has assigned you as tenants in common on the TR1 and reflected your shares (as they say they have) then you should really have nothing to worry about regarding the financials.

EDIT: is your partner receptive to discussions.

MEM62

TopOsprey wrote: »

Will I get 60% of the house value (take away the outstanding mortgage), or should prepare myself for a long battle in court?

Ask your ex. Their actions will dictate which way this goes - not our opinions.

TopOsprey

Thank you Exodi,

Sorry for my very selective response (stress). We are not on good terms I am afraid:( We still live at this property, and I would happily buy her out - although she has already turned down my offer.

What would the Declaration of Trust change in this situation?

Exodi

MEM62 wrote: »

Ask your ex. Their actions will dictate which way this goes - not our opinions.

I have to echo this. Everyday we see ex's that refuse to leave the house making selling the house close to impossible or are happy to leave the house overvalued on the market ad infinitum.

Exodi

TopOsprey wrote: »

Thank you Exodi,

Sorry for my very selective response (stress). We are not on good terms I am afraid:( We still live at this property, and I would happily buy her out - although she has already turned down my offer.

What would the Declaration in Trust change in this situation?

I understand. Unfortunately, whilst you may have all your ducks in a row regarding the equity split, as I said before, your biggest issue will be actually selling the house.

Was your buy-out offer a sensible one? The first ones rarely are - has she gave an indication of what she'd accept to buy her out (and then you could negotiate unless she gives you a mickey mouse figure)? You really need her on your side because there's little stopping her 'veto'-ing any step to sell the house and you won't realistically force a sale without her on your side.

TopOsprey

She wants to sell the house in order to receive "her" 50%". She will not let me buy her out....(why?) out of spite.
I fact she wants to sell it badly, as she is in serious debt. And you are right, she believes that she can get significantly more than the market can offer..

Exodi

TopOsprey wrote: »

She wants to sell the house in order to receive "her" 50%". She will not let me buy her out....(why?) out of spite.
I fact she want to sell it badly, as she is in serious debt. And you are right, she believes that she can get significantly more than the market can offer..

If she refuses to let you buy her out, that's her prerogative. It's good as a starting point that she's at least keen to sell; the first step would be getting some valuations and having the house listed. 'Some' estate agents like to drastically inflate the guide price (and buyers in general like to get a discount to feel like they've got a bargain) so you should both be reasonable in what you're willing to accept after the valuations.

Do you have copies of the deeds? I'd make sure you're 100% the solicitor has assigned the ownership correctly before proceeding. I guess it's then up to you whether you let her know her "50%" isn't "50%".

getmore4less

Do not move out.

even without the trust document you have the evidence that there was an intention to have unequal shares and that would have a good chance of standing up in court.


There is often a complication that many people get it wrong which can cause further issues.

How did you come to the 60:40 split?

You start with the total cost of buying look at the cash inputs and the mortgage payment split.

What were the cash inputs and the mortgage split?

Any other significant contributions like overpayments of paying for work on the property.