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Transfer of equity - costs involved
Jojo_2017
Posts: 1 Newbie
I've recently split up with my partner and we are in the process of him buying my share of the house out.
He has told me that his solicitor has advised him that he is entitled to half of the sale costs (costs we would have had to pay had the property been sold so an estate agents fee) which he said is 1% of the value of the property, price we have agreed. We have agreed the property is worth £150k so he therefore wants to take off £750 (half of 1% of 150k) my part of the equity in the house.
Is this correct? I don't think it is as we are not selling the house he is buying my share in the property from me so he has basically made this figure up of what it would cost if we sold. He is saying he's doing me a favor by buying my half of the property so we don't have to pay for an estate agents therefore I should pay him this money back out of my half of the equity. The £750 will basically just go to him. Surely if there is no actual fee to pay out I don't have to pay anything.
He has told me that his solicitor has advised him that he is entitled to half of the sale costs (costs we would have had to pay had the property been sold so an estate agents fee) which he said is 1% of the value of the property, price we have agreed. We have agreed the property is worth £150k so he therefore wants to take off £750 (half of 1% of 150k) my part of the equity in the house.
Is this correct? I don't think it is as we are not selling the house he is buying my share in the property from me so he has basically made this figure up of what it would cost if we sold. He is saying he's doing me a favor by buying my half of the property so we don't have to pay for an estate agents therefore I should pay him this money back out of my half of the equity. The £750 will basically just go to him. Surely if there is no actual fee to pay out I don't have to pay anything.
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Comments
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You are correct. If you are splitting 50/50 then he pays you (£150k - outstanding mortgage)/2.
There will be some legal costs which it would seem fair to split 50/50.0 -
partner? So this is not a divorce settlement? It's a negotiated arrangement and therefore up for.... negotiation.0
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I had cost of sales of the property deducted and only net amount was subject to split (buy out calculations) in my divorce case and it was ordered by the judge.
But as per above post this is not a divorce case so you can negotiate.0 -
Up to you whether or not to agree, personally if there are no fees to pay as he is not selling it then you shouldn't be paying them....YOU are doing HIM a favour by not pressuring him to sell the property so maybe he should not try and weasel another £750 off you.
I have tested this in a court before and the Judge was thinking along the lines of, no fees to pay then no fees to split.0 -
You could argue that if you then have to sell the house alone you will have to pay 100% of fees so maybe He should pay You half the fees !!Decluttering, 20 mins / day Jan 2024 2/20
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I think it’s fair to split the actual legal fees 50/50.0
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