Buying ex's share of the house

saajan_12

The thing is you ARE in a chain if you want to buy ex's share..

• ex is using the money from the sale of (part of) this property to fund his onward purchase --> so sale must be completed on or before the onward purchase completion
• ex is using (part of) this property which they still own to live in until the move date --> so sale must be completed on or after the onward purchase completion

If they complete on your transaction earlier, then they'd be your guest and have no legal right to live there. If they had a tenancy / licence then you get into sale & rent back issues which may not be allowed legally and by the lender. Plus many licences don't have much security - what if you kick them out the day after agreeing for them to stay? What if the purchase falls through but ex has already sold their share of your house? 

Sounds like them buying elsewhere is part of the plan / deal, so naturally that is a chain of transactions. Aside from the stress you cite, whats the problem? 

GreenCat80

saajan_12 said:

The thing is you ARE in a chain if you want to buy ex's share..

• ex is using the money from the sale of (part of) this property to fund his onward purchase --> so sale must be completed on or before the onward purchase completion
• ex is using (part of) this property which they still own to live in until the move date --> so sale must be completed on or after the onward purchase completion

If they complete on your transaction earlier, then they'd be your guest and have no legal right to live there. If they had a tenancy / licence then you get into sale & rent back issues which may not be allowed legally and by the lender. Plus many licences don't have much security - what if you kick them out the day after agreeing for them to stay? What if the purchase falls through but ex has already sold their share of your house? 

Sounds like them buying elsewhere is part of the plan / deal, so naturally that is a chain of transactions. Aside from the stress you cite, whats the problem? 

Because he wants me to sign a legal document stating I’ll pay him the money on the day of his completion. Doesn’t that make me liable if something goes wrong? 

Thrugelmir

GreenCat80 said:

saajan_12 said:

The thing is you ARE in a chain if you want to buy ex's share..

• ex is using the money from the sale of (part of) this property to fund his onward purchase --> so sale must be completed on or before the onward purchase completion
• ex is using (part of) this property which they still own to live in until the move date --> so sale must be completed on or after the onward purchase completion

If they complete on your transaction earlier, then they'd be your guest and have no legal right to live there. If they had a tenancy / licence then you get into sale & rent back issues which may not be allowed legally and by the lender. Plus many licences don't have much security - what if you kick them out the day after agreeing for them to stay? What if the purchase falls through but ex has already sold their share of your house? 

Sounds like them buying elsewhere is part of the plan / deal, so naturally that is a chain of transactions. Aside from the stress you cite, whats the problem? 

Because he wants me to sign a legal document stating I’ll pay him the money on the day of his completion. Doesn’t that make me liable if something goes wrong? 

Speak to your solicitor to ascertain the best way of managing the process. 

doodling

Hi,

GreenCat80 said:

saajan_12 said:

The thing is you ARE in a chain if you want to buy ex's share..

• ex is using the money from the sale of (part of) this property to fund his onward purchase --> so sale must be completed on or before the onward purchase completion
• ex is using (part of) this property which they still own to live in until the move date --> so sale must be completed on or after the onward purchase completion

If they complete on your transaction earlier, then they'd be your guest and have no legal right to live there. If they had a tenancy / licence then you get into sale & rent back issues which may not be allowed legally and by the lender. Plus many licences don't have much security - what if you kick them out the day after agreeing for them to stay? What if the purchase falls through but ex has already sold their share of your house? 

Sounds like them buying elsewhere is part of the plan / deal, so naturally that is a chain of transactions. Aside from the stress you cite, whats the problem? 

Because he wants me to sign a legal document stating I’ll pay him the money on the day of his completion. Doesn’t that make me liable if something goes wrong? 

It is no different to any other house purchase.  You agree to pay for the house on a specific day (and by a specific time) and your ex will be doing the same thing with respect to their purchase, just like any other chain.  Just like any chain, if you don't do what you say you will do then you will become liable for costs.

Whether the document you are being asked to sign is appropriate is something that you need to discuss with your solicitor - it may be that changes would need to be negotiated with your ex's solicitors, but it would certainly be reasonable for you to commit to the purchase of the house on a fixed day.

It would also be reasonable for you to require that your ex is fully moved out of what will be your house on the same day (indeed, this will probably be a condition of your mortgage) so you both have things you want to happen at specific times.

RAS

Note is that you may need to have the funds to pay him at exchange. If he's using his existing savings to cover the deposit, then it may be OK otherwise but your solicitor needs to agree the rules with his solicitor early on.

If you've not bought a house recently with a mortgage, then do get the mortgage broker to run through the dos and don'ts that cover your financial responsibilities between offer and completion.

Don't take out any other credit, make a note of all answers you give all questions on the application form and don't put any other answer on any other application even if it's for insurance as they may be compared and shared between financial institutions. The computer likes to say no. 

Have you got a documented access agreement yet?

I wish you well; you've taken on an unenviable task (grew up in a similar household).  You'll not have much of that 8K left after paying fees, but do get a will sorted out now if you've not already done one. 

saajan_12

GreenCat80 said:

saajan_12 said:

The thing is you ARE in a chain if you want to buy ex's share..

• ex is using the money from the sale of (part of) this property to fund his onward purchase --> so sale must be completed on or before the onward purchase completion
• ex is using (part of) this property which they still own to live in until the move date --> so sale must be completed on or after the onward purchase completion

If they complete on your transaction earlier, then they'd be your guest and have no legal right to live there. If they had a tenancy / licence then you get into sale & rent back issues which may not be allowed legally and by the lender. Plus many licences don't have much security - what if you kick them out the day after agreeing for them to stay? What if the purchase falls through but ex has already sold their share of your house? 

Sounds like them buying elsewhere is part of the plan / deal, so naturally that is a chain of transactions. Aside from the stress you cite, whats the problem? 

Because he wants me to sign a legal document stating I’ll pay him the money on the day of his completion. Doesn’t that make me liable if something goes wrong? 

That's effectively the same as exchanging contracts to pay and transfer the house on <completion date>.
* You should have your mortgage offer in place, expiring beyond the completion date before you sign. Then yes, if something still goes wrong and you don't pay as promised, then you'd be liable - same as if you bought from a 3rd party. 
* Partner should also move out and the solicitors should transfer the deeds to your sole name on that day too - if they fail to do that then they'd be liable to you for any resulting costs.

letthemeatcake

Don't sign anything that his solicitor sends you.  The fact he has jumped ahead is his problem. He needs to wait until you have the finances in place to buy him out.