Partner owns house. I paid for extension. Now pay off mortgage

RAS

I haven't paid towards the mortgage here. Simply as I was living in my mortgage free property before I met him, was happy to pay if I went on deeds, which he didn't want and the last 2  years I've been on maternity (and had to reduce my hours due to the nature of my business, for a lot of the first pregnancy.

Nowhere in your initial post does it explain that you currently own another house, that you rent out.

And if you are such a softie with your tenants, you could still end up homeless as it could take 6-18 months to extract the tenants if you served a compliant S21 tomorrow. 

Obviously if your partner wants you on the deeds before the rental property sells, you could still reclaim the SDLT as long as your current house sells within 3 years. 

shell145

RAS said:

I haven't paid towards the mortgage here. Simply as I was living in my mortgage free property before I met him, was happy to pay if I went on deeds, which he didn't want and the last 2  years I've been on maternity (and had to reduce my hours due to the nature of my business, for a lot of the first pregnancy.

Nowhere in your initial post does it explain that you currently own another house, that you rent out.

And if you are such a softie with your tenants, you could still end up homeless as it could take 6-18 months to extract the tenants if you served a compliant S21 tomorrow. 

Obviously if your partner wants you on the deeds before the rental property sells, you could still reclaim the SDLT as long as your current house sells within 3 years. 

Sorry, was posting whilst with baby, bit manic here!

I'd never end up homeless. I'd have a fair bit of money in savings, even if I paid off mortgage here.  Not enough for a mortgage but enough to rent, which obvs would never want to do. But regardless, I need to protect myself in the worse case situation. 

Very interesting about having 3 years to reclaim SDLT. I will sell within 3yrs. So that goes back to presumably instructing a conveyancing solicitor, for me to pay off mortgage through them and at the same time go on the deeds.

What me and partner are still unsure about is how to value the percentage split. I think might as well get house valued now as a starting point. Perhaps the estate agent could give an opinion on the pre extension valuation too..

Thank you 

shell145

RAS said:

I haven't paid towards the mortgage here. Simply as I was living in my mortgage free property before I met him, was happy to pay if I went on deeds, which he didn't want and the last 2  years I've been on maternity (and had to reduce my hours due to the nature of my business, for a lot of the first pregnancy.

Nowhere in your initial post does it explain that you currently own another house, that you rent out.

And if you are such a softie with your tenants, you could still end up homeless as it could take 6-18 months to extract the tenants if you served a compliant S21 tomorrow. 

Obviously if your partner wants you on the deeds before the rental property sells, you could still reclaim the SDLT as long as your current house sells within 3 years. 

It looks like I might not be eligible for refund kn SDLT. As it has to be selling your previous main home. I've been renting it for 3.5 years already, when I moved into partners home.

Scorpio33

What I would do in the abscence of anything else is state that his equity is £250k/£350k - ie: 71.4% of the house when you moved in. so you can say that the rest (28.6%) is split 50/50.

However, when you paid for the extension, you in effect paid 50% of that to him (£40k). So if you didn't, he would have to borrow the £40k, making his total equity on the house £210k (£250k less the "extra" £40k he woold have to borrow. That makes his share of the house 60%, you 40%.

The better thing to do would be to work out the equity at the time of the extension being done, and adjust the figures accordingly.

Then going forward, assume you pay 50% of the mortgage (and go on the deeds).

Then when it comes to paying off the mortgage when the deal is up, I would state that your share (For exaxmple, 40% in the above) is what you are paying off, the rest is a "loan" to him. You need to think about what would happen if you seperated (in theory) after the mortgage is paid off - would you expect him to pay you back for the amount you paid off the house? If so, would you also need something in place to make the clear, legally?

Other things I would add:

- Technically you have not paid to the mortgage prior to the extension going in, so you would want to adjust it until your contribution to the extension.
- Thinking purely financially, that assumes you both have the same earning powers, which it probably wont be. You may want to adjust things if this differs.
- What you agree between you may not be what others agree on. It is for both of you to agree.
- You need to be careful and assume the worst happens, and what would then happen to the money you have paid in as well as what your kids would get.

shell145

Scorpio33 said:

What I would do in the abscence of anything else is state that his equity is £250k/£350k - ie: 71.4% of the house when you moved in. so you can say that the rest (28.6%) is split 50/50.

However, when you paid for the extension, you in effect paid 50% of that to him (£40k). So if you didn't, he would have to borrow the £40k, making his total equity on the house £210k (£250k less the "extra" £40k he woold have to borrow. That makes his share of the house 60%, you 40%.

The better thing to do would be to work out the equity at the time of the extension being done, and adjust the figures accordingly.

Then going forward, assume you pay 50% of the mortgage (and go on the deeds).

Then when it comes to paying off the mortgage when the deal is up, I would state that your share (For exaxmple, 40% in the above) is what you are paying off, the rest is a "loan" to him. You need to think about what would happen if you seperated (in theory) after the mortgage is paid off - would you expect him to pay you back for the amount you paid off the house? If so, would you also need something in place to make the clear, legally?

Other things I would add:

- Technically you have not paid to the mortgage prior to the extension going in, so you would want to adjust it until your contribution to the extension.
- Thinking purely financially, that assumes you both have the same earning powers, which it probably wont be. You may want to adjust things if this differs.
- What you agree between you may not be what others agree on. It is for both of you to agree.
- You need to be careful and assume the worst happens, and what would then happen to the money you have paid in as well as what your kids would get.

Thank you, that's definitely gives some good options to consider and discuss with my partner. 

It's very difficult to get a price just prior to extension and tbh, house prices (& buildong materials) were crazy high then for around 12 months! We paid a lot more for the extension than originally anticipated, when it was planned 10 months prior.

I've contacted 2 estate agents for valuations. I wonder if they might be willing to estimate a price imagining the extension didn't exist. 

Savvy_Sue

I think a proper RICS surveyor would be better placed to give historic values. You'd have to pay, but you'd be able to rely on their figures.

london21

Not wise to keep putting large amounts of money in with nothing to show you own part of the property.

what planet is your partner from.