Buying partner out of mortgage (Agreement on Equity)

philpa1977

Hello,

Maybe a basic question but could someone advise if it must be a 50/50 split for the equity calculation when buying my ex out of the mortgage?

We are joint tenants and my understanding is that legally a 50/50 split of equity is stated. We have agreed that this split is not fair due to my contribution Vs my ex's since we purchased the house, as the split is amicable. Therefore we have agreed a 60/40 split. When doing the transfer of equity, will this be acceptable to the solicitor. Or legally does it need to be 50/50?

I am able to afford the mortgage on my own, but this one question is confusing me with respect to how much additional i need to borrow.

Thanks

TonyMMM

50/50 would be the normal starting point if there was no other agreement in place - but you can agree whatever you like between you.

Tom99

And remember there may be stamp duty to pay based on the price paid plus 50% of the mortgage being taken over.

getmore4less

philpa1977 wrote: »

Hello,

Maybe a basic question but could someone advise if it must be a 50/50 split for the equity calculation when buying my ex out of the mortgage?

We are joint tenants and my understanding is that legally a 50/50 split of equity is stated. We have agreed that this split is not fair due to my contribution Vs my ex's since we purchased the house, as the split is amicable. Therefore we have agreed a 60/40 split. When doing the transfer of equity, will this be acceptable to the solicitor. Or legally does it need to be 50/50?

I am able to afford the mortgage on my own, but this one question is confusing me with respect to how much additional i need to borrow.

Thanks

Joint tenants only really comes into play on death as that determines the full legal and beneficial ownership to the survivor.

A side agreement can still exist like a trust deed to create a debt to/from the estate of the deceased.

On a sale JOINT or TIC is not relevant if there is agreement to who gets what.

Even without a prior agreement/intentions you can agree anything you like at the time.

How have you come to the agreement that 60:40 is right?

Many get this wrong including solicitors.