Split from partner

everycloudandthat

I'm splitting from my partner we have twins who are 5 and own our family home. I have recently moved into my mom's with the kids and plan on staying there. My partner will be living in the family home. The house is in my name as I brought it and paid for the mortgage myself, however he has put £70,000 towards paying the mortgage off when he lost his grandma a few years ago. I have suggested that we get it valued and he takes his £70,000 off the valuation then takes out a mortgage to cover the costs to pay me the rest and I then transfer the house into his name.  I just haven't a clue how to go about this, we are trying to be amicable and do this ourselves without involving solicitors, does this sound feasible? Many thanks.

blue_max_3

Are you married? Assuming not, that sounds a good arrangement if there is enough equity for him to take it on in his own name. It's probably not a good time with values easing downwards. You should get it valued as soon as you can. Many have suggested a RICS valuer will ask for your valuation and often would agree to that, so make sure you get the valuation done. 

everycloudandthat

No but have lived together for almost 13 years

AlexMac

everycloudandthat said:

....we are trying to be amicable and do this ourselves without involving solicitors, does this sound feasible? Many thanks.

Very best wishes resolving this; and excellent that you are being civilised and co-operative.  I have close unmarried friends -luckily with no shared children - who were unable to resolve property matters amicably on separating after 25-odd years together.  The legal bills ran to tens of thousands; what a waste!

One factor to consider is whether in fairness to your partner, you should boost (or reduce?) the £70k to reflect house price inflation since he input his capital?  The property websites such as Zoopla give local house price change averages over the past 1, 5, or even up to 20 years, down to 3-digit postcode areas, so while they aren't necessarily accurate, that might be a guide.  After all, unless you bought right at the peak of the market in 2007 and just before  prices dropped by up to 25% in some areas, you've probably almost inevitably enjoyed the benefit of house price increases during your ownership?  So you'd be realising that gain on selling to him (which is effectively what yo're doing) even if the current valuation shows a COVID wobble?

But that might be me trying to be too clever.  Whatever happens, it's probably better that you keep things amicable rather than coming up with a formula which either party might have last minutes doubts about; good luck.   

blue_max_3

Agree with the above, but we're 'acting' for the OP : )

everycloudandthat

I unfortunately brought the house when the prices were sky high and shortly after they plumetted. So after gutting the place out which I paid for I realise I was never going to make a profit in the long run and will just about break even with what I've spent on the house. I also put a deposit down when I brought it and paid all the mortgage but I always said if anything happened between us I'd give him his £70,000 back regardless and that's what I intend to do. Just hope that I can trust him to remortgage it for the price I have in mind, of what it's value was before covid hit. Thanks for the reply.

Comms69

everycloudandthat said:

I unfortunately brought the house when the prices were sky high and shortly after they plumetted. So after gutting the place out which I paid for I realise I was never going to make a profit in the long run and will just about break even with what I've spent on the house. I also put a deposit down when I brought it and paid all the mortgage but I always said if anything happened between us I'd give him his £70,000 back regardless and that's what I intend to do. Just hope that I can trust him to remortgage it for the price I have in mind, of what it's value was before covid hit. Thanks for the reply.

Sorry no. That's an unrealistic expectation; and outside of his control.

blue_max_3

Well, he's lived in the place rent free, so that should redress the balance somewhat. Only bring up if needed though as he might say he's contributed in different ways.

Comms69

blue_max_3 said:

Well, he's lived in the place rent free, so that should redress the balance somewhat. Only bring up if needed though as he might say he's contributed in different ways.

Well he's paid £70k, hardly rent free. 

Also presumebly contributed to the household in other ways?

blue_max_3

Comms69 said:

Well he's paid £70k, hardly rent free. 

Also presumebly contributed to the household in other ways?

Well, he's getting that back and I mentioned the contribution issue.

Comms69

blue_max_3 said:

Comms69 said:

Well he's paid £70k, hardly rent free. 

Also presumebly contributed to the household in other ways?

Well, he's getting that back and I mentioned the contribution issue.

Yes, i just mean that it could easily be he's actually paid off more equity than the OP.