Paying ex partner out of the mortgage

alic555

Hi All

Just looking for advice as I don't know where I stand. 

My child's father and I seperated over 5 years ago, he left his name on the mortgage which was great as it meant could stay in the house he has not contributed to the mortgage or home improvements since which I did not want or expect. 

I am now more financially stable to take the house on my own yet he has asked for half of all the equity. Maybe he has every right to and I totally am grateful to have been able to stay here, yet I've made many improvements and obviously paid for everything. I don't want to argue through courts because of our child and we have a really good relationship. I guess I should of sorted this sooner. 

I put the deposit down from my familys gift initially which was 30,000 if I am to pay half the full equity I more than likely will need to move as it is 85,000 as our houses have shot up in price as many have, I managed to pay around 30,000 (I've taken off the interest) so CE he's lived here. 

However, as he has his name on do I just accept it move and pay half? Do I have any kind of arguement here that I could maybe ask through some kind of moderation? 

I know I have been stupid so appreciate that I guess I never anticipated this, which I should of. 

Marky4040

alic555 said:

Hi All

Just looking for advice as I don't know where I stand. 

My child's father and I seperated over 5 years ago, he left his name on the mortgage which was great as it meant could stay in the house he has not contributed to the mortgage or home improvements since which I did not want or expect. 

I am now more financially stable to take the house on my own yet he has asked for half of all the equity. Maybe he has every right to and I totally am grateful to have been able to stay here, yet I've made many improvements and obviously paid for everything. I don't want to argue through courts because of our child and we have a really good relationship. I guess I should of sorted this sooner. 

I put the deposit down from my familys gift initially which was 30,000 if I am to pay half the full equity I more than likely will need to move as it is 85,000 as our houses have shot up in price as many have, I managed to pay around 30,000 (I've taken off the interest) so CE he's lived here. 

However, as he has his name on do I just accept it move and pay half? Do I have any kind of arguement here that I could maybe ask through some kind of moderation? 

I know I have been stupid so appreciate that I guess I never anticipated this, which I should of. 

If your ex's name is on the title as 50/50 there's nothing you can do. He's entitled to 50% of the asset, fighting it in court would cost you thousands.

It's never something which people think about at the start and that's understandable however now it's going to sting to abide by the contract you both signed at the beggining. sorry.

Thrugelmir

Without him remaining on the mortgage for the past 5 years you wouldn't have benefited from the some of the capital appreciation. Swings and roundabouts so to speak. He knew his rights and you've realised this too late. See if your ex will accept slightly less than 50% of the equity. 

alic555

Thanks for both of your advice I really appreciate the honesty I will have a chat and see how it goes but yes don't intend for one second to go to court thanks both 

Sistergold

Yes he did you a favour BUT he also knew he will benefit in the long run. He has asked for 50% and he is probably expecting the 50%. Be prepared for an interesting chat, also be careful not to ruffle him as he might decide not to let you buy him out thereby you continue paying the mortgage for another donkey years and you still have to give him half when finally you go through the courts to buy him out or sell. Basically you are at his mercy otherwise you become joined at the hip and you become a prisoner in this mortgage. 

alic555

Thank you at the moment he's happy for me to buy him out but I think looking at it I will probably sell and just split the collateral it may be easier for everyone a fresh start, unfortunently I wasn't in a great place for a few years to be thinking straight but at the same time it could have been a lot worse had he not agreed to keep his name on, I guess I don't walk away with a loss as such thank you for the advice

Thrugelmir

If you are able to remortgage into your name. You don't face the financial and emotional hassle involved in moving house. Your ex will incur costs in starting afresh. Look at the issue from all angles not just financial. 

alic555

Thank you that's a good point I really appreciate that ☺️ alot to think about.

MovingForwards

How much equity is in your rental property?
You could look to release that, sell it or change the mortgage to a residential one and move back in, after evicting any current tenants. Alternatively, sell both properties and use your 50% plus what's left of the rental equity, as your new mortgage deposit.

I'm assuming you didn't have a declaration of trust drawn up to secure your deposit on this house?