Ex is buying me out but how much should I recieve?

Deanmo89

Hi all,
My ex is currently in the process of buying me out. We've lived in the house for 8 months and now decided to go our separate ways.
My question is, how much does she owe me? We went into the house 50/50, with a 17,500 deposit on a 350k house. 
She reckons I should only be paid my deposit back, which equates to 8750, and anything after is a good will gesture. 
In total, with mortgage payments, buying fees (solicitors,surveys etc) work done to the house and mortgage payments, I've paid in over 16K, and she is willing to give me 12K. 
Am I in the wrong here to think I should be entitled to what I've paid in, or have I overestimated?

Point to note, the mortgage lenders have not charged us to end the agreement early, and have ported the mortgage into her name as she can afford it on her own. I was willing to drop 3.5K from the 16K I was estimating due to the early repayment fee (7K), but this wasn't needed.

Anyone been in this situation and have any advice?
Thanks

AdrianC

No, you aren't entitled to a simple "I paid in £1, so I need that £1 back". Apart from the fact that the fees etc were spent on buying the place, you're forgetting interest on the money you jointly borrowed.

If you dig your heels in, then the equitable way to resolve this would be to sell the property, right?

And, in that case, you would be due half of the equity from the sale. If she's offering £12k, I'd be taking it, because you almost certainly won't see that from a market sale.

Deanmo89

I did calculate the mortgage payments and how much we had actually paid off, and it was more around 13.5k. 
I was going off the whole 50/50 argument of I paid this in, so technically you are buying my half of the house from me, and this is how much I've paid, but if that isn't the case then not to worry.
thanks!

p00hsticks

Deanmo89 said:

I've paid in over 16K, and she is willing to give me 12K.

So in effect you've paid 4k for 8 months rent. £500 a month seems very reasonable for a house, depending on where it is. 

In my opinion your ex is being very generous - if you sold the property now you'd be adding selling costs to the purchase costs and there's unlikely to be any equity in the property after such a short time, so if I were you I'd bite her hand off.

greatcrested

Deanmo89 said:

Hi all,
We went into the house 50/50, with a 17,500 deposit on a 350k house. 
She reckons I should only be paid my deposit back, which equates to 8750, and anything after is a good will gesture. 
In total, with mortgage payments, buying fees (solicitors,surveys etc) work done to the house and mortgage payments, I've paid in over 16K, and she is willing to give me 12K.

1) have you each been paying 50% of the mortgage repayments?

2) Did she pay 50% of the buying fees and 'work done on the house'?

3) What is the current market value of the property?

4) What is the current outstanding mortgage?

Deanmo89

greatcrested said:

Deanmo89 said:

Hi all,
We went into the house 50/50, with a 17,500 deposit on a 350k house. 
She reckons I should only be paid my deposit back, which equates to 8750, and anything after is a good will gesture. 
In total, with mortgage payments, buying fees (solicitors,surveys etc) work done to the house and mortgage payments, I've paid in over 16K, and she is willing to give me 12K.

1) have you each been paying 50% of the mortgage repayments?

2) Did she pay 50% of the buying fees and 'work done on the house'?

3) What is the current market value of the property?

4) What is the current outstanding mortgage?

greatcrested said:

1) have you each been paying 50% of the mortgage repayments?
 both paid in 50/50 on mortgage payments, 

2) Did she pay 50% of the buying fees and 'work done on the house'?
she paid the other 50% of the buying fees, but has put more into the house in terms of work done, mainly because we had split a while ago, and if we had worked it out, I was to give her half of this money.

3) What is the current market value of the property?
supposedly (haven't seen the figures) just over 360K

4) What is the current outstanding mortgage?
Mortgage according to my Credit report was 328.5k

Ozzuk

Bite her hand off...you are saving yourself months of stress and costs if she doesn't agree to buy you out.  She could easily just stay in the property then you are facing court costs as well if you wanted to force her hand.  And, it actually sounds like an extremely fair/generous offer - after fees/offers that 360k could easily be 330-340k

Deanmo89

The main question behind this was, does she have to buy out the part of the house I've paid, but it seems it doesn't go that way. 

Thanks for the comments

greatcrested

So broadly speaking (putting aside " has put more into the house in terms of work done, mainly because..." you have each contributed equally overall. So you each 'own' 50% of the current value.

Market value less mortgage (£360K - 328.5K) = £31,500 equity.

Half that is £15,750.

There'll be some modest legal/Land Registry fees to trasfer the ownership, plus that " has put more into the house in terms of work done, mainly because.." which might entitle her to a bit more.

So £12K seems a fair figure - certainly not worth getting inot a bun-fight over a £K or so and risking escalating costs, stress, time or worse... no agreement at all.

Deanmo89

greatcrested said:

So broadly speaking (putting aside " has put more into the house in terms of work done, mainly because..." you have each contributed equally overall. So you each 'own' 50% of the current value.

Market value less mortgage (£360K - 328.5K) = £31,500 equity.

Half that is £15,750.

There'll be some modest legal/Land Registry fees to trasfer the ownership, plus that " has put more into the house in terms of work done, mainly because.." which might entitle her to a bit more.

So £12K seems a fair figure - certainly not worth getting inot a bun-fight over a £K or so and risking escalating costs, stress, time or worse... no agreement at all.

This was more for my own information, just due to the fact shes coming off worse by paying me 12k, even with me putting in what I did.  In my eyes, she was saving herself 4k by me agreeing to take 12k, but she reckons she's the one coming worse off. I was just seeing if i was being reasonable or not.

Thrugelmir

She's suggested £12k. Ask for £14k. Compromise is somewhere in the middle. 
What would it cost to sell the property? What if you didn't achieve a £360k selling price?