Recent split

kevcarling

Hi

My partner and i of 20+ years (not married) have recently split, she is still living with me and i want to keep the house on in my name with the morgage. Our house has £73k left on the morgage and its worth approximately £180k, leaving just over £100k equity. We recently took out a second morgage for some home improvements for £10k, but we have only used about £1.5k of that. I pay the morgage of about £693 and second morgage of £86 per month. She pays the utility bills gas, water, council tax etc totalling approx £290. 
She has said, that she wants half, which is fair enough but also the deposit of £10k which was part of her inheritance from her grandmother. I initially agreed but have had second thoughts and said she wasn’t entitled to it. We have no agreements in place in the event of a split. She has reacted badly to this and is now demanding £5k for the kitchen which she funded.
Can anyone advise which is the correct way to proceed on this matter?

Cheers

getmore4less

There must have been some discussion/agreement to get to the point  of you pay the mortgage she pays the bills.


Why were you not 50:50 from the start?


if you start going down the "I paid this and that" you will need a full time line.


Do you have the cash to buy out or will this require a bigger mortgage,  will you get one?

kevcarling

There was no real discussion as to who paid what, I earn about a third more than her so it was natural ( to me anyway) that I’d pay the lions share. 

I will hopefully be able to remortgage & but her out. 

Redwino222

Have you spoken to a solicitor.

your partner was very foolish to live like this for so long.  

She contributed to the running off this home for twenty plus years.  She should have had a share in ownership of the house.

you should both get legal advice and come up with something fair. 

MWT

kevcarling said:

She has said, that she wants half, which is fair enough but also the deposit of £10k which was part of her inheritance from her grandmother. I initially agreed but have had second thoughts and said she wasn’t entitled to it.

You can do some simple maths to get a rough idea of what is likely to be fair based on the starting point.

What was the initial value of the house, mortgage and deposit?

getmore4less

I would look at the starting point total costs to buy. that includes all costs and who paid them.

That will be split into the cash you each put in and the mortgage.


Then any major cash input over and above that during the ownership.


estimate the value now

there are typically 2 main methods you get people doing with a written deed of trust.

1. money in back  split the mortgage 50:50(or  agreed %)  then split the uplift 50:50 after mortgage.
   (cash in during ownership can complicate a bit or go with the cash in== cash out)
2. more equity based where  you split on the amount in + share of mortgage.
   again the cash inputs during ownership can complicate but id near the beginning you get equity near end cash back or a share of instant uplift.

Depending on the numbers there may not be a big difference in the two or combination and then it is down to a bit of negotiation which is Often driven by motivations, need and greed.



Not sure how you earning 1/3 more left you with ~70% of the bills?


The legal starting point will be 50:50 of whatever is left after the debt and any costs as you don't seem to have any pre agreed case.

You might be able to argue a case for owning more at the start by paying more of the combined bills.

That may hold more for a short relationship but 20years with combined finances I think it would goo 50:50 



Equity buy out soon after a capital raise for improvements one for the brokers knowing  your lender.



One thing to realise is when she says when want X  it is 1/2 X out of your pocket

when she want money back and 1/2 equity  you should get you money back as well before doing the 1/2 bit.


Say you put nothing in then she is asking for £14k so you will be negotiating £7k less for you.

rough numbers lets call it £100k  since you have most of the cash from the £10k

That would be ~£50k each
she takes out her £14k

leaves you £43k  her £57k

I would counter that with you were paying the mortgage 2:1 equivalent  and that should swing it back to you using equity based.

That could be you paid more than your fair share because she provided the deposit


Need more numbers to have a go at that option.

Thrugelmir

You'll need to compromise. No one is going to resolve this for you. Why not split the difference and agree to another £5k. After all your ex partner is going to incur costs in buying a new home whereas you have no hassle at all just stay as you are.