My Girlfriend is trying to buy me ouy... Help Please!!!

Sol1980_2

Hi any help on the following subject would be apreciated.

I split up with my girlfriend a few months back and now the time has finally come to go our seperate ways.

We purchased the house in May-06 for £109,500 and a joint 50/50 mortgage and it has been that way ever since in terms of contributuions to the mortgage and bills. All done via a joint account which was set up for this purpose.

She has decided she wants to keep the house (fair enough) and i will be moving out very shortly. Now it comes to terms of money and what im entilted to?????

We have had the house valued recently and the common figure is £114,950 but to expect a couple of grand less. I have been putting in £280 every month for the past 20 months to cover the mortgage (£5400) but around £600 in total including bills etc.

I have such a sheltered knowlegde when it comes to this, and as it stands she has offered me a £1000 and i will leave and sign it over into here sole name. This cant be right. If anyone could answer these questions i would be grateful-

1) From what i have researched im entilted to the equity i have put into the property (£5400)???

2) She keeps mentioned selling cost of about £2500, but this cant be right as there wont be selling costs just a small charge for taking my name off the mortgage????

3) Im know its an easy way out but im not really looking for every last penny and obviously want to avoid solicters cost, but would like to walk away with a decent some of money?

We have pucrchased household items together but i said she can keep those ie: sofa, bed, washer, fridge, etc but would just like to know roughly what im entilted too...... Any and i mean any help/advice would be sooo grateful.

Many Thanks.

itsgototstop

Hi,

An expert will be along shortly, but most of your mortgage repayments in the first few years will be interest so you haven't paid off £5k of capital, more like £500

Once solicitors fees etc have been taken into account it doesn't sound like there is much equity in the flat for you to have a share of?.

pinkshoes

You won't have put in £5400 equity, as alot of that money would be mortgage interest payment, and not paying off the debt!!

If you've both paid 50/50 to the mortgage and bills, then you should be entitled to half of the valuation of house minus the mortgage remaining.

i.e. if the house is valued at £115k, and you owe £100k on the mortgage, then you have £15k equity in the house, so she should give you £7500 (plus half the furniture). You might require a solicitor to get the name changed on the deeds, so should pay for this 50/50.

itsgototstop

Sorry just reread your post, it sounds a good offer FWIW

itsgototstop

pinkshoes wrote: »

You won't have put in £5400 equity, as alot of that money would be mortgage interest payment, and not paying off the debt!!

If you've both paid 50/50 to the mortgage and bills, then you should be entitled to half of the valuation of house minus the mortgage remaining.

i.e. if the house is valued at £115k, and you owe £100k on the mortgage, then you have £15k equity in the house, so she should give you £7500 (plus half the furniture). You might require a solicitor to get the name changed on the deeds, so should pay for this 50/50.

Totally agree, but if they paid £109, and now EA says under £114 to sell, not alot of equity?

Trollfever

Have you asked the mortgage lender if they are prepared to release you from the liabilty?

Badger_Lady

Assuming you're on 100% mortgage (since you haven't mentioned deposits), this sounds fair.

It's got nothing to do with how much mortgage you've paid - why should your girlfriend make a loss? It's 50/50 all the way.

Your house has apparently gone up by about £3,000. There will be a cost to sell the house and realise that equity of at least £1,500 (the house is worthless until it's sold, and your girlfriend will have to fork out for this). This leaves £1,500 for you two to split between you.

Even if you exclude the sale costs (which you shouldn't), there are legal expenses to carry out a transfer of equity - ballpark, £300 for your girlfriend's solicitor, £300 for your solicitor (you have to have a separate one for conflict of interest) and £200 for the mortgage company. This would leave £700 for you two to share.

You can ignore the last paragraph if you like, because I guess you'll pay for those costs half each anyway. But, overall, £1000 is a good offer and I'm guessing she only made that offer to get it over and done with. Cut and run, mate!

pinkshoes

itsgototstop wrote: »

Totally agree, but if they paid £109, and now EA says under £114 to sell, not alot of equity?

True, at the current valuation, the OP would get (£114,950 - £109500k)/2 = £2725

but that's assuming they took a 100% mortgage.

Perhaps they put down a deposit??

AMILLIONDOLLARS

I'd make sure that she has got a mortgage to cover the entire cost of the house, it would be a shame if she defaulted but you were still liable for half the mortgage, its not enough to get your name removed from the deeds, the Building Society needs to know whats going on as well.

Suzy_M

From what you've said it sounds as though you'll be walking away with nothing at all - and this sounds suspiciously like she's taking you for a mug!

I know it's a difficult time for you but you really should stand up for yourself and get your fair share. And do at least have a preliminary chat with a solicitor - it's really not that expensive when you consider what you may lose.

itsgototstop

Did you put down a deposit on purchase?

If so you want this back. If not it doesn't sound a bad offer TBH.