Negotiation in Joint Ownership

[Deleted User]

I would appreciate your honest advice. I need to sell the house and severe my financial ties with ex-partner. I have managed to locate him and he is happy to negotiate the equity in the property. What would be a fair and acceptable offer on my behalf:
Remaining loan + mortgage: £95,800
House improvement costs: £3-4k
His contributions: no deposit. Only 14 months of payment which amount to £6.3k.
My contributions: £93k 
These figures are rough estimates. To put into context I have been contributing towards the mortgage and upkeep of the house for 15 years vs. his 14months. 
What would be a fair offer to him? 
thank you
  

AdrianC

I think I'd be looking no further than "here's your £6k back"...

[Deleted User]

AdrianC said:

I think I'd be looking no further than "here's your £6k back"...

Well I guess that's not possible.. especially if there is £50k equity - he will want as much as possible from that. And court fees are expensive, and you have to show before you go to court that you have negotiated. So hence the question

xylophone

I have a property that was bought with my ex partner in 2006. He left the country and we separated in 2008. I want to sell the house, and severe my financial ties with him. I have been solely responsible for the upkeep of the house, and for the mortgage payments. 

But he is joint owner of the property and I suspect that offering him only what he paid in won't cut the mustard.

What is the estimated sale value of the property?

getmore4less

funny how when you add the extra details the picture changes,,

prompted by the bought in 2006 we also have.

The property has been partly rented out since 2007. I have also moved out of the property in the last 8 years.   

His contributions: no deposit. Only 14 months of payment which amount to £6.3k.
My contributions: £93k 

How much of that was funded by rent?

How much rent has he got from this arrangement etc.

[Deleted User]

xylophone said:

I have a property that was bought with my ex partner in 2006. He left the country and we separated in 2008. I want to sell the house, and severe my financial ties with him. I have been solely responsible for the upkeep of the house, and for the mortgage payments. 

But he is joint owner of the property and I suspect that offering him only what he paid in won't cut the mustard.

What is the estimated sale value of the property?

He is a joint owner and the value is between £150-£160k, so if I was to get £50k from the sale for argument sake, he would want half of that. What is reasonable to negotiate? what would be the minimum and the maximum. He is asking for 40% at the moment, but I am willing to start negotiations from 20%. Would that be reasonable?

[Deleted User]

getmore4less said:

funny how when you add the extra details the picture changes,,

prompted by the bought in 2006 we also have.

The property has been partly rented out since 2007. I have also moved out of the property in the last 8 years.   

His contributions: no deposit. Only 14 months of payment which amount to £6.3k.
My contributions: £93k 

How much of that was funded by rent?

How much rent has he got from this arrangement etc.

There were times when there was a lodger to contribute towards the mortgage. He had no input into this arrangement. The house was in negative equity for the first 5 years, so I had to play the long game. Contributions from rent have been declared to HMRC. He is not a UK resident. I also have testimonies from him saying "I don't care, your score will be affected, you will be chased by the banks" So I had far more to loose if I did not keep up with payments. I have also incurred a loss over the years, because the rent was not enough. 

getmore4less

You asked what is fare but failed to mention critical information from this thread.

Fare will depend on a lot of factors
often you can cancel out the mortgage for sole use of the property
Then there is the rent that was covering the interest anything over that will be creating equity to share
etc.

Intermediate price are potentially not relevant.
Purchase, sale cashflow and your interim use will contribute to working out what is a guide to fare based on financials.

[Deleted User]

getmore4less said:

You asked what is fare but failed to mention critical information from this thread.

Fare will depend on a lot of factors
often you can cancel out the mortgage for sole use of the property
Then there is the rent that was covering the interest anything over that will be creating equity to share
etc.

Intermediate price are potentially not relevant.
Purchase, sale cashflow and your interim use will contribute to working out what is a guide to fare based on financials.

Thanks for the advice. cancelling out the mortgage for sole use of the property was never an option. its funny how the system sells something but then does NOT protect you as a consumer or does NOT warn you about the risks. the biggest risk i had in my mind when we bought the property was not keeping up with payments, but everyone kept mouth shut all the way from mortgage advisor to conveyancing solicitor about a declaration of trust and explaining the terms joint ownership etc.
Financial education is a BIG problem, and having a legal framework to protect and reward those who have been abiding by the rules, which currently is missing. Happy days for my ex as he will be getting ££ for a promise he never honoured.