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

NewShadow

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 is exactly how I just scribbled out on a scrap of paper - £15,750 each minus the 'extra' work she's done since you moved out = darn near £12k to me... 

TBagpuss

The way to look at it is "what would you get if the house was being sold"? - not "What have I put in?"

So if  the market value is £360,000, mortgage is £328,500 gross equity before you take into account any costs of sale is £31,500. If youi were selling, you would be paying agents fees etc, and some day when the house is sold, those will be payable, so it's reasonable to take them off. Court's would typically budget around 2 - 2.5% of the house value for that, but even if you only allow 1% then that  is £3,600. And if you were selling, there would presumably be ERC to pay, which again, your ex is taking on that risk.
I suspect that if you sold you might end up with less than £12K, but ignoring the possibility of ERCs it is in the right ball park - by all means see whether your ex will increase it to £13K but £16k is too high, on the facts you have provided. 

[Deleted User]

Have you been making overpayments to the mortgage?  I did a quick calculation based on a 90% LTV mortgage over 25 years with a rate of 2% and I don't get 13,500 of capital repayments in 12 months never mind 8.

Purchase Price	350000
Deposit	£          17,500
Total Deposit	£          35,000
Mortgage	£        315,000
LTV	90%
Rate	2%
Term	25
Payment	-£1,335.14			£      9,788
	Payment	Principal	Interest	Balance
1	-£1,335.14	-£810.14	-£525.00	£  314,190
2	-£1,335.14	-£809.40	-£522.30	£  313,380
3	-£1,335.14	-£810.75	-£520.95	£  312,570
4	-£1,335.14	-£812.10	-£519.60	£  311,758
5	-£1,335.14	-£813.46	-£518.25	£  310,944
6	-£1,335.14	-£814.81	-£516.89	£  310,129
7	-£1,335.14	-£816.17	-£515.54	£  309,313
8	-£1,335.14	-£817.53	-£514.18	£  308,496
9	-£1,335.14	-£818.89	-£512.81	£  307,677
10	-£1,335.14	-£820.26	-£511.45	£  306,856
11	-£1,335.14	-£821.63	-£510.08	£  306,035
12	-£1,335.14	-£823.00	-£508.71	£  305,212

Deanmo89

- deposit was 5% - 17500 total
- mortgage was 1214 x 7 = 8498, obviously minus interest etc, it had only taken off around 3-3.5k in equity.
- last amount i seen was 328.5k still to go, so 21.5k in total off purchase price.

AdrianC

Deanmo89 said:

- deposit was 5% - 17500 total
- mortgage was 1214 x 7 = 8498, obviously minus interest etc, it had only taken off around 3-3.5k in equity.
- last amount i seen was 328.5k still to go, so 21.5k in total off purchase price.

Right number, wrong working.

Start with the current value. Let's assume that's still £350k.
Since she's buying you out, there's zero sale costs.
Mortgage outstanding is £328.5k.
Value - sale costs - mortgage = £21,500 equity in the property.
Half that is your due = £10,750.

If she cannot raise a mortgage to cover the entire £328,500 on her own, then she will need to sell. If you push your sense of entitlement too hard, she will need to sell. If she needs to sell, work on at least £5k sale costs.
So assuming the property sells for the same £350k you paid, that would take your share to £8,250.
But if the property only sells for £340k, that would take your share to £3,250.
And, yes, if the property sells for £360k, that would take your share to £13,250...

diego_94

Also don't forget if you sold that you may have a fee for coming out of the mortgage early. In my opinion, take the £12k and move on, it will be far less stressful for you.