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

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  • Badger_Lady
    Badger_Lady Posts: 6,264 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Biggie wrote: »

    (Current market value- (outstanding mortgage - redemption amount - estatge agent fees - Legal fees - the 5% deposit she paid))/2

    Doesn't add up to much by the time it's all taken off, does it? OP, yes, I'm convinced you've done the right thing for yourself there :D .
    Mortgage | £145,000Unsecured Debt | [strike]£7,000[/strike] £0 Lodgers | |
  • Agree with above, if lender take him off mortage its not a bad offer.

    I've seen some threads on DFW that suggest they won't always do this
  • pinkshoes
    pinkshoes Posts: 20,532 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If she's buying him out, then why would he have to pay half of selling fees? I very much doubt she'll be paying half his buying fees if he finds a new property!!

    Equity (valuation price* - mortgage remaining) minus her £5k deposit (which obviously is hers), leaves you with £2640 each. Out of your £2640, you'd then have to pay any costs of changing deeds, and taking name off mortgage**.

    *Get 3 valuations and take the average

    **IF this can be done!
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • Yeah we had 3 valuatons of the property, and the most positive feedback was to expect a maximum of £113,000.

    Think just leaving with the grand is as good as it will get and the least hassle....
  • Sol1980 wrote: »
    Yeah we had 3 valuatons of the property, and the most positive feedback was to expect a maximum of £113,000.

    Think just leaving with the grand is as good as it will get and the least hassle....

    Well that's most likely to be the least stressful solution as long as you can square it with yourself.

    Presumably you're not really worse off than if you'd rented for that period of time?
  • Badger_Lady
    Badger_Lady Posts: 6,264 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    pinkshoes wrote: »
    If she's buying him out, then why would he have to pay half of selling fees? I very much doubt she'll be paying half his buying fees if he finds a new property!!

    I didn't make this up - it was advised by my solicitor :D

    It's because the property in question is only worth the amount of money that you'd get back if it were sold.

    One day (we assume), she will sell that house and have to pay those costs. Just because he's selling out early doesn't mean he gets away without sharing those. Anyway, even in your calculations he's done OK - it will cost at least £600 (probably a couple of hundred more) in legal fees to do the transfer of equity.

    EDIT: We might all be rambling anyway - their solicitors will probably have to come to a monetary agreement as part of the transfer of equity! They'll be a lot more precise than us...
    Mortgage | £145,000Unsecured Debt | [strike]£7,000[/strike] £0 Lodgers | |
  • chappers
    chappers Posts: 2,988 Forumite
    I didn't make this up - it was advised by my solicitor :D

    One day (we assume), she will sell that house and have to pay those costs. Just because he's selling out early doesn't mean he gets away without sharing those. quote]

    Absolute Tosh, she will reap the increase in equity and decrease in mortgage balance, should he claim back his share of the moving in costs of which he no longer has any benefits in that case.

    You should get ((£113,000-£104,670) -£5000)/2 =£1665 les the solicitors costs.

    As has been said does her salary allow her to transfer the mortgage equity from yourself if so then you won't need two solicitors to do this provided you are happy with the arrangement.
    Why not take your grand and walk and chalk it up to experience, unless you are really tight for the money and if so then screw the heartless !!!!! for every penny:p :p.
  • SquatNow
    SquatNow Posts: 2,285 Forumite
    I'de tell her to keep the £1000 to put towards the costs... basically she can arrange the transfer and pay all the fees (both solicitors etc) and you'll want nothing in exchange.

    Except for:
    A) She agrees that all liability and responsibility for the property transfers to her. Your names comes off EVERYTHING.
    B) She agrees to have it all complete before the end of the month.

    If you start getting into negotiation and dragging the process out, the value of the house will drop in the meantime. Eventually one of 2 things will happen:
    A) You'll have to pay HER to cover off the negative equity liability she will be taking on.
    B) You wont be able to come to an agreement and the house will be sold, probably at a knock down rate, and you'll end up needing a £10k unsecured loan to cover the negative equity.

    Cut your losses and run. Let her have the house and all the tat inside in exchange for her having the liability for negative equity. But don't tell her that or she'll be asking YOU for cash!

    When it comes down to it, all you've paid towards the house is less than you would have paid if you had rented your own place... so why worry about it.

    In 12 months you'll be free and clear and she'll be stuck in the negative equity trap.
    Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.
  • Sol1980 wrote: »
    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.

    It matters not .... if you are joint tenants (rather than tenants in common) you own the house 50/50.

    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)???

    No - you are entitled to half the value of the house, less half the mortgage. The equity is the value of the house, less the mortgage. You are entitled to half of the difference ..... but read on...
    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????

    What she's saying is ..... "if you don't accept my offer, then we put the house on the market. Then .... we split ..... the value of the house (assuming we get an offer at that price), less the mortgage, less the costs of selling i.e. less the EA's fee, less the penalty for redeeming the mortgage, less the solicitor's fee.
    (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?

    all you can reasonably expect is what you would get if you sold on the market. If she buys you out, then she would meet 100% of these costs in the future. You are no worse off - compared with what you would get, if you sold "today" (and assuming you get the full asking price). Put it another way .... she is taking on all the future risk i.e. the risk that these costs will be higher in the future.
    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.

    Anything you bought from your own funds are yours. Anything she bought from her funds are hers. Anything you bought jointly, is owned jointly .... split 50/50 unless either one of you can demonstrate that you contributed more than 50% of the cost. You don't need to take a chainsaw to the sofa... you could agree that one of you has the sofa and other has the bed, for example.

    HTH
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • chappers
    chappers Posts: 2,988 Forumite
    You don't need to take a chainsaw to the sofa... .

    HTH

    !!!! it I would just for the hell of it.
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