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poohwithmoney

Hi,

Hope someone can help after 3 and a half years by boyfriend has decided to end things apparantly he has wanted to for months!!!! The thing is we have just brought a house togeather.

We paid £185,000 for it in August (it was a complete state) and set about doing it up it's nowhere near finished and we are in about £30,000 of debt because of all the work, the debt is in joint names. It was valued a few months ago at £230,000 unfinished.

I don't want to put another penny into the house. I am confussed if i should move out (I thankfully kept my flat) or not, if i move out am i still entitled to any of the profit made on the house. He can afford the house on his own so he could buy me out - but who decides on the buy out cost. We live in a sought after area where people are on a list with Estate agents for property and we have been told once the house is finished it could go for £280,000-£300,000.

Any help would be great as at the moment i can't speak to anyone without blubbing x

TheDink

You need to agree the value of the property between you - get some estate agents round to value it, and use the average price if your ex decides to buy you out.

You will need to appoint a solicitor to act on your behalf to sort out all the legal aspects.

kunekune

Is the house in joint names? If so, the presumption is that you have equal shares and if your ex-bf wants more than half, he will have to prove that that is what was intended. You will need to see a solicitor but it should not be too difficult to sort out. It will be more complicated if the house is not in joint names.

Lotus-eater

Best advice is to keep it amicable between yourselves if you can, get estate agents round and if possible decide on a price between yourselves. Good luck.

Phirefly

I agree. If you can decide whats fair, sort it out amicably between yourselves. All a solicitor will do at this stage will ask you what you want, and fight on your behalf to secure that.

Rikki

Don't forget to discuss what will happen to the joint debt. As you are both liable for it.

elvis_girl

I don't think it makes any difference whether you move out or not, though for your own sanity you might prefer it. Get an estate agent to give you a valuation & then let a solicitor to sort it all out for you - the legal side should be straightforward enough. Good Luck

SerenaGoode

Sorry to hear about this, and much sympathy for the emotional side of it. Unfortunately you need to try to be clear-headed about the financial side.

Two points you need to decide:

1) If he is buying you out it should be at the current value (at an agreed time). There is no reason why you would need to live in the flat until that time but you should share all costs on the house up until the moment of the settlement or accept that if you don't some costs may be deducted. For example - if you stop paying the mortgage now but don't settle for two months it would be fair for him to deduct your missing mortgage payments from the settlement.

Also before reaching a final figure you may need to take in any disparity between what you initially put in in terms of deposit. If you've been working on the house together that could introduce another problem if for instance he has done more work than you or vice versa but I think in general the best starting point would be to accept that as an equal endeavour and equal profit.

2) The best way to decide the value is to agree on a system of arbitration and stick to it. For instance you could get three estate agents round, ask them for a realistic estimate of current sale value then average it. Then arrange a proper buy-out of the property through a solicitor.

Bear in mind that he may end up selling for more or less than the settlement price, Forget about that - all that matters is to come to a fair settlement at the time of agreement. If that can't be achieved the final resort would be to insist on selling the house and splitting the profit, but that should be a last resort in this situation (especially as the market isn't great at the moment).

Good luck.

bina72

Hi there,
Sorry to hear of your troubles. This happened to me not so long ago so I may be able to offer some advice?

If the house & mortgage is in joint names then half the equity (& Debt) is yours. In my situation I moved out before a settlement was made. I carried on paying half the mortgage until then. My then partner didn't want to sell so bought my half.
You need to agree a settlement as amicably as possible. Get it all in writing & both sign & date it. I know it sounds daft but the most amicable split can turn sour when it comes to money. I found that my ex mis-remembered or had misheard original agreements (or may be I had!). There's so much stress involved it will add to the confusion (& give you sleepless nights).

So, get the house valued, agree what you think it's worth (on a given date), if it goes up/ down in that time you must cut your losses. Subtract the remaining mortgage from the sum, then divide what's left between you. From this sum you can then offer to pay off half the 30k debt you mentioned. This would mean you receiving less of a lump sum.
Ensure if this happens the debt is no longer in joint names (or you will still be liable if anything goes wrong).
The same advice goes for any joint accounts you may hold too.
I would advise getting a solicitor, a good one will advise you & only do what you instruct them to do.
I wish you luck & happier times ahead.

takoo

Hi poohwithmoney

Hope you will settle amicably. If not, each of you could choose an independent professional estate agent to agree the price on your behalf.

Alternatively, the two of you could select one independent professional estate acceptable to you both to determine a price for you both.

Or you might enquire together of the Valuation Office Agency (but I have never heard of them acting in quite this way).

Find out what the alternatives would cost you jointly.

Best wishes to both of you

Takoo

General_Mayhem

bina72 wrote: »

I would advise getting a solicitor, a good one will advise you & only do what you instruct them to do.

Try to reach an amicable agreement before you get the solicitors involved - it will save you both a lot of money if the solicitors only have to carry out your instructions rather than thrash out a settlement.