Relationship break up

hebridean

My daughter and her boyfriend bought a flat in September 2021 in joint names and she was paying half the mortgage. They however split up about five months ago, with her leaving and the boyfriend making the monthly repayments as she couldn't afford to pay her new accommodation rent and the mortgage. The boyfriend wants to buy her out, but presently can't afford to do so and he's quoting a buyout figure of £5000 based on the "family surveyors" valuation (his parents are very wealthy) and what's been payed back to the mortgage.

I've done a bit of online digging and got three valuations one of which was from the estate agents they bought the property through. The estimates are 46000, 35000 and 25000 over what they paid in 2021, so you can see why I reckon he's trying to rip her off! She would take the £5000 from him tomorrow to get him out of her life, but I am convinced that she should be receiving at least three times what he's offering.

So I'd be grateful for any advice I could pass on to her on what she should do given what I've just outlined.

Many thanks

elsien

Get her own independent RICS survey done?

Albermarle

I would take the highest valuation of £46,000, show it to him if you have it in writing from the EA, and ask for a minimum of half of that.
Then a negotiation should start, with counter offers etc.
Normally when you get three EA valuations, you take the middle one, so she should be aiming to get £17,500, but best to start higher as suggested.

swingaloo

Was the deposit 50-50?

theartfullodger

There are no rules for price, what's needed is the two to agree on a number.

ThisIsWeird

Can't your daughter ultimately force him to sell, and split the proceeds? Should be quite a good lever.

saajan_12

hebridean said:

My daughter and her boyfriend bought a flat in September 2021 in joint names and she was paying half the mortgage. They however split up about five months ago, with her leaving and the boyfriend making the monthly repayments as she couldn't afford to pay her new accommodation rent and the mortgage. The boyfriend wants to buy her out, but presently can't afford to do so and he's quoting a buyout figure of £5000 based on the "family surveyors" valuation (his parents are very wealthy) and what's been payed back to the mortgage.

IF he can't afford to buy her out then is this even a starter? Unless his family is going to help, he'll need to sell, in which case the value is firmed up by the actual offers they get. 
The situation can't stay as an IOU for years - that would be unfair to daughter who can't get on another mortgage, doesn't get a return on the money she has tied up, etc. 

hebridean said:

I've done a bit of online digging and got three valuations one of which was from the estate agents they bought the property through. The estimates are 46000, 35000 and 25000 over what they paid in 2021, so you can see why I reckon he's trying to rip her off! She would take the £5000 from him tomorrow to get him out of her life, but I am convinced that she should be receiving at least three times what he's offering.

So I'd be grateful for any advice I could pass on to her on what she should do given what I've just outlined.

Many thanks

Well there's a few things to think about if they're trying to fairly split the equity.

* EA valuations are largely guesswork, as shown by how different they are, They're also often quite optimitstic to try to get your business. Its usually better to take the lowest or compare to recent sold prices in the area. 

* How was the deposit split and how much equity was paid off while she was there and paying? 

* She'll have more buying costs including no FTB stamp duty discount for her next purchase, while he has an owned house with no such costs to come. So arguably she should get a little more than 50% of the equity. 

Albermarle

saajan_12 said:

hebridean said:

My daughter and her boyfriend bought a flat in September 2021 in joint names and she was paying half the mortgage. They however split up about five months ago, with her leaving and the boyfriend making the monthly repayments as she couldn't afford to pay her new accommodation rent and the mortgage. The boyfriend wants to buy her out, but presently can't afford to do so and he's quoting a buyout figure of £5000 based on the "family surveyors" valuation (his parents are very wealthy) and what's been payed back to the mortgage.

IF he can't afford to buy her out then is this even a starter? Unless his family is going to help, he'll need to sell, in which case the value is firmed up by the actual offers they get. 
The situation can't stay as an IOU for years - that would be unfair to daughter who can't get on another mortgage, doesn't get a return on the money she has tied up, etc. 

hebridean said:

I've done a bit of online digging and got three valuations one of which was from the estate agents they bought the property through. The estimates are 46000, 35000 and 25000 over what they paid in 2021, so you can see why I reckon he's trying to rip her off! She would take the £5000 from him tomorrow to get him out of her life, but I am convinced that she should be receiving at least three times what he's offering.

So I'd be grateful for any advice I could pass on to her on what she should do given what I've just outlined.

Many thanks

Well there's a few things to think about if they're trying to fairly split the equity.

* EA valuations are largely guesswork, as shown by how different they are, They're also often quite optimitstic to try to get your business. Its usually better to take the lowest or compare to recent sold prices in the area. 

* How was the deposit split and how much equity was paid off while she was there and paying? 

* She'll have more buying costs including no FTB stamp duty discount for her next purchase, while he has an owned house with no such costs to come. So arguably she should get a little more than 50% of the equity. 

However best to use the highest when opening the negotiations !

saajan_12

Albermarle said:

saajan_12 said:

hebridean said:

My daughter and her boyfriend bought a flat in September 2021 in joint names and she was paying half the mortgage. They however split up about five months ago, with her leaving and the boyfriend making the monthly repayments as she couldn't afford to pay her new accommodation rent and the mortgage. The boyfriend wants to buy her out, but presently can't afford to do so and he's quoting a buyout figure of £5000 based on the "family surveyors" valuation (his parents are very wealthy) and what's been payed back to the mortgage.

IF he can't afford to buy her out then is this even a starter? Unless his family is going to help, he'll need to sell, in which case the value is firmed up by the actual offers they get. 
The situation can't stay as an IOU for years - that would be unfair to daughter who can't get on another mortgage, doesn't get a return on the money she has tied up, etc. 

hebridean said:

I've done a bit of online digging and got three valuations one of which was from the estate agents they bought the property through. The estimates are 46000, 35000 and 25000 over what they paid in 2021, so you can see why I reckon he's trying to rip her off! She would take the £5000 from him tomorrow to get him out of her life, but I am convinced that she should be receiving at least three times what he's offering.

So I'd be grateful for any advice I could pass on to her on what she should do given what I've just outlined.

Many thanks

Well there's a few things to think about if they're trying to fairly split the equity.

* EA valuations are largely guesswork, as shown by how different they are, They're also often quite optimitstic to try to get your business. Its usually better to take the lowest or compare to recent sold prices in the area. 

* How was the deposit split and how much equity was paid off while she was there and paying? 

* She'll have more buying costs including no FTB stamp duty discount for her next purchase, while he has an owned house with no such costs to come. So arguably she should get a little more than 50% of the equity. 

However best to use the highest when opening the negotiations !

No, not necessarily, its not some long, drawn out corporate negotiation to strike the best, nuanced deal. For more simple transactions, I personally would 'start' with something realistic, show I'm being perfectly reasonable and 'end' at the same number. 

kempiejon

 She would take the £5000 from him tomorrow to get him out of her life, but I am convinced that she should be receiving at least three times what he's offering.

So I'd be grateful for any advice I could pass on to her on what she should do given what I've just outlined.

I helped a friend extract themselves from a terrible relationship and joint property. After 18 months of pointless back and forth and promises and ongoing distress from my friend she issued an ultimatum a price and a date and if that couldn't be met a quick sale.

In the end there was thousands of pounds in unfairness that had gone on but getting out sane is more important than quibbling over money.
Are you're asking for advice - I say get out as soon as and move on take the £5k if it offers full and final resolution.

You feel this unfair and your offspring is being hard done by. By a git with a wealthy family too. How very dare they. With that mindset healing cannot being. My situation, the money became largely irrelevant as we just wanted the scrote out of my friends life and a chance to pick up and start free of abuse and control.

Albermarle

saajan_12 said:

Albermarle said:

saajan_12 said:

hebridean said:

My daughter and her boyfriend bought a flat in September 2021 in joint names and she was paying half the mortgage. They however split up about five months ago, with her leaving and the boyfriend making the monthly repayments as she couldn't afford to pay her new accommodation rent and the mortgage. The boyfriend wants to buy her out, but presently can't afford to do so and he's quoting a buyout figure of £5000 based on the "family surveyors" valuation (his parents are very wealthy) and what's been payed back to the mortgage.

IF he can't afford to buy her out then is this even a starter? Unless his family is going to help, he'll need to sell, in which case the value is firmed up by the actual offers they get. 
The situation can't stay as an IOU for years - that would be unfair to daughter who can't get on another mortgage, doesn't get a return on the money she has tied up, etc. 

hebridean said:

I've done a bit of online digging and got three valuations one of which was from the estate agents they bought the property through. The estimates are 46000, 35000 and 25000 over what they paid in 2021, so you can see why I reckon he's trying to rip her off! She would take the £5000 from him tomorrow to get him out of her life, but I am convinced that she should be receiving at least three times what he's offering.

So I'd be grateful for any advice I could pass on to her on what she should do given what I've just outlined.

Many thanks

Well there's a few things to think about if they're trying to fairly split the equity.

* EA valuations are largely guesswork, as shown by how different they are, They're also often quite optimitstic to try to get your business. Its usually better to take the lowest or compare to recent sold prices in the area. 

* How was the deposit split and how much equity was paid off while she was there and paying? 

* She'll have more buying costs including no FTB stamp duty discount for her next purchase, while he has an owned house with no such costs to come. So arguably she should get a little more than 50% of the equity. 

However best to use the highest when opening the negotiations !

No, not necessarily, its not some long, drawn out corporate negotiation to strike the best, nuanced deal. For more simple transactions, I personally would 'start' with something realistic, show I'm being perfectly reasonable and 'end' at the same number. 

However the other party seems to have started with a very low offer !