Buying out a partner

NicolaEv

I bought a house with my partner in March 21, he’s a lot younger than me so didn’t have a deposit. I have 2 children and owned my own property so when I sold my house I paid the deposit on our new house. We agreed that we would have 50/50 ownership after my deposit was taken out(though nothing in writing). 

The relationship broke down a while ago and he’s become unbearable to live with. I’ve worked out his ownership with the capital he has put into the house from mortgage payments and offered him his actual ownership at the new value based on this percentage (around £6k). As house prices have sky rocketed our property has increased in value by £35k since we bought it. My ex partner is saying he won’t leave the house unless I give him 50% of the equity in the house after I’ve taken my deposit out so around £18k. This seems ridiculous when he’s only contributed £4k of capital. I know I can refuse to give him that and we would have to go to court but is it worth that or would I end up paying the same in court fees that I would to buy him out and is it likely I would win? 

He’s now saying he might not even accept the £18k and if we go down the court route he will come after my deposit as well as he shouldn’t be expected to pay any fees as he doesn’t want to leave. I’ve been told unless he can prove he has contributed to that he won’t be able to get hold of my deposit. 

Choirgrl

Is his name on the title deeds of the property? Is the mortgage in your joint names, or just yours? Both of those will impact what he could legally be entitled to, given you haven’t formally (and legally) agreed anything else.

If you can’t agree things between you, mediation could be a route to resolve things rather than courts.

Noneforit999

Is the house solely in your name or are you joint owners?

If joint, are you actually joint tenants or tenants in common with a 50% share each?

SavingPennies_2

Hm not sure about the last paragraph but I think he is right in that he is entitled to half of the increase in value since you bought the property. Are you join tenants or tenants in common, since you say you agreed 50/50 ownership?

Are the children living in the property? I assume this would put weight on your side if if went to court but someone more knowledgeable may know better. 

pinkshoes

NicolaEv said:

I bought a house with my partner in March 21, he’s a lot younger than me so didn’t have a deposit. I have 2 children and owned my own property so when I sold my house I paid the deposit on our new house. We agreed that we would have 50/50 ownership after my deposit was taken out(though nothing in writing). 

The relationship broke down a while ago and he’s become unbearable to live with. I’ve worked out his ownership with the capital he has put into the house from mortgage payments and offered him his actual ownership at the new value based on this percentage (around £6k). As house prices have sky rocketed our property has increased in value by £35k since we bought it. My ex partner is saying he won’t leave the house unless I give him 50% of the equity in the house after I’ve taken my deposit out so around £18k. This seems ridiculous when he’s only contributed £4k of capital. I know I can refuse to give him that and we would have to go to court but is it worth that or would I end up paying the same in court fees that I would to buy him out and is it likely I would win? 

He’s now saying he might not even accept the £18k and if we go down the court route he will come after my deposit as well as he shouldn’t be expected to pay any fees as he doesn’t want to leave. I’ve been told unless he can prove he has contributed to that he won’t be able to get hold of my deposit. 

He is entitled to half the equity increase of his percentage share.

E.g. if the house was bought at £180k and you put down an £18k deposit, then that means his share was 45% and yours was 55%.

If the house has now gone up by £35k since you bought it, then he is entitled to 45% of this equity increase, so £15,750, plus any extra of equity that has been paid off via the mortgage.

Work the correct amount out yourself:

(House price now - mortgage owed) x 0.45 = how much your ex can claim.

He is not claiming any of your original capital, he is claiming half the increase.

tightauldgit

From what you've written it seems like you are saying you will give him back what he has put in and he is saying he wants his share of the actual equity? 

If so I have to say I agree with him. If the value of his investment has grown over time then he's entitled to benefit from that growth, not just to receive back what he put in.

Maybe I'm misunderstanding your OP though

caprikid1

pinkshoes said:

NicolaEv said:

I bought a house with my partner in March 21, he’s a lot younger than me so didn’t have a deposit. I have 2 children and owned my own property so when I sold my house I paid the deposit on our new house. We agreed that we would have 50/50 ownership after my deposit was taken out(though nothing in writing). 

The relationship broke down a while ago and he’s become unbearable to live with. I’ve worked out his ownership with the capital he has put into the house from mortgage payments and offered him his actual ownership at the new value based on this percentage (around £6k). As house prices have sky rocketed our property has increased in value by £35k since we bought it. My ex partner is saying he won’t leave the house unless I give him 50% of the equity in the house after I’ve taken my deposit out so around £18k. This seems ridiculous when he’s only contributed £4k of capital. I know I can refuse to give him that and we would have to go to court but is it worth that or would I end up paying the same in court fees that I would to buy him out and is it likely I would win? 

He’s now saying he might not even accept the £18k and if we go down the court route he will come after my deposit as well as he shouldn’t be expected to pay any fees as he doesn’t want to leave. I’ve been told unless he can prove he has contributed to that he won’t be able to get hold of my deposit. 

He is entitled to half the equity increase of his percentage share.

E.g. if the house was bought at £180k and you put down an £18k deposit, then that means his share was 45% and yours was 55%.

If the house has now gone up by £35k since you bought it, then he is entitled to 45% of this equity increase, so £15,750, plus any extra of equity that has been paid off via the mortgage.

Work the correct amount out yourself:

(House price now - mortgage owed) x 0.45 = how much your ex can claim.

He is not claiming any of your original capital, he is claiming half the increase.

I think this is wrong. 

Unless there is a deed of trust or anything stating different ownership or deposit etc. Ownership is 50/50.

Value of House -  deposits and mortgage then the remainder split 50/50 I think in a divorce you normally split 50/50 after a notional amount for selling costs.

If he wants to be difficult he could try and get 50% of the entire equity IE your deposit, probably would not succeed I hasten to add but ultimately need to know what was put in place legally when the house was bought.

Personally you should just pay him 50% of the £35K equity and move on , the time to be sorting this out was legally before you bought the house. Anything else will just make this an expensive legal battle.

Alternatively offer him £12-15K double you initial offer after taking into account selling costs and not achieving asking price etc.

diystarter7

tightauldgit said:

From what you've written it seems like you are saying you will give him back what he has put in and he is saying he wants his share of the actual equity? 

If so I have to say I agree with him. If the value of his investment has grown over time then he's entitled to benefit from that growth, not just to receive back what he put in.

Maybe I'm misunderstanding your OP though

So sad to read so many threads like this, sorry about your situ OP

I agree with the above post and that's how I've read your post.

Sadly, I have to agree with the above post but if I was a judge and it went to court, I'd agree with you.

Section62

diystarter7 said:

Sadly, I have to agree with the above post but if I was a judge and it went to court, I'd agree with you.

That isn't how courts work, decisions aren't made on the basis of the personal opinions of the judge.

The decision would be arrived at on the basis of the law, precedent, and evidence.

The OP needs to speak to an experienced solicitor offline, so they can discuss the situation in the level of detail which is not advised on an online forum.

pinkshoes

caprikid1 said:

pinkshoes said:

NicolaEv said:

I bought a house with my partner in March 21, he’s a lot younger than me so didn’t have a deposit. I have 2 children and owned my own property so when I sold my house I paid the deposit on our new house. We agreed that we would have 50/50 ownership after my deposit was taken out(though nothing in writing). 

The relationship broke down a while ago and he’s become unbearable to live with. I’ve worked out his ownership with the capital he has put into the house from mortgage payments and offered him his actual ownership at the new value based on this percentage (around £6k). As house prices have sky rocketed our property has increased in value by £35k since we bought it. My ex partner is saying he won’t leave the house unless I give him 50% of the equity in the house after I’ve taken my deposit out so around £18k. This seems ridiculous when he’s only contributed £4k of capital. I know I can refuse to give him that and we would have to go to court but is it worth that or would I end up paying the same in court fees that I would to buy him out and is it likely I would win? 

He’s now saying he might not even accept the £18k and if we go down the court route he will come after my deposit as well as he shouldn’t be expected to pay any fees as he doesn’t want to leave. I’ve been told unless he can prove he has contributed to that he won’t be able to get hold of my deposit. 

He is entitled to half the equity increase of his percentage share.

E.g. if the house was bought at £180k and you put down an £18k deposit, then that means his share was 45% and yours was 55%.

If the house has now gone up by £35k since you bought it, then he is entitled to 45% of this equity increase, so £15,750, plus any extra of equity that has been paid off via the mortgage.

Work the correct amount out yourself:

(House price now - mortgage owed) x 0.45 = how much your ex can claim.

He is not claiming any of your original capital, he is claiming half the increase.

I think this is wrong. 

Unless there is a deed of trust or anything stating different ownership or deposit etc. Ownership is 50/50.

Value of House -  deposits and mortgage then the remainder split 50/50 I think in a divorce you normally split 50/50 after a notional amount for selling costs.

If he wants to be difficult he could try and get 50% of the entire equity IE your deposit, probably would not succeed I hasten to add but ultimately need to know what was put in place legally when the house was bought.

Personally you should just pay him 50% of the £35K equity and move on , the time to be sorting this out was legally before you bought the house. Anything else will just make this an expensive legal battle.

Alternatively offer him £12-15K double you initial offer after taking into account selling costs and not achieving asking price etc.

@caprikid1 - what you are saying is correct, and without a deed of trust in place, he is entitled to demand 50% of ALL equity.

But from what the OP has written, I don't think he is asking for half the initial deposit, just half the increase in equity since they bought which would be more than fair.

If he took her to court for 50% of the entire equity despite their verbal agreement, I don't think he would win, but he would indeed be given half the increase in equity as per his initial 45% share in the property.

RogerBareford

diystarter7 said:

tightauldgit said:

From what you've written it seems like you are saying you will give him back what he has put in and he is saying he wants his share of the actual equity? 

If so I have to say I agree with him. If the value of his investment has grown over time then he's entitled to benefit from that growth, not just to receive back what he put in.

Maybe I'm misunderstanding your OP though

So sad to read so many threads like this, sorry about your situ OP

I agree with the above post and that's how I've read your post.

Sadly, I have to agree with the above post but if I was a judge and it went to court, I'd agree with you.

Don't feel sorry for the OP they could have got a deed of trust to document exactly what would happen in the event of a sale, they could have even owned different percentages of the property.

They have chosen not to do this so they are both entitled to 50% of the property.