HELP on getting equity out for relationship split

james3333

my ex g/f is wanting £7000 from the house after our split
what do i need to do to get it and would i be better getting a loan instead?

pinkshoes

Have you agreed to the £7k?

Are both names on the deeds/mortgage? (if yes, hers will need taking off, which will cost ££££ and she should pay half. Also, can you afford the mortgage on your own).

A few more details are needed.

james3333

thanks for the reply
yes, 7k agreed.
we are just sorting solicitor a solicitor each to sort her name off the deeds (not sure why we need 2!!!??
and yes, i have seen the bank and i can afford the mortgage on my own..just!

LandyAndy

Looks like you've got things covered. You need two solicitors because each of you needs someone to look after their interests.

Good Luck

LA

pinkshoes

james3333 wrote: »

thanks for the reply
yes, 7k agreed.
we are just sorting solicitor a solicitor each to sort her name off the deeds (not sure why we need 2!!!??
and yes, i have seen the bank and i can afford the mortgage on my own..just!

In that case, then can't you just re-mortgage and add on £7k?

LandyAndy

pinkshoes wrote: »

In that case, then can't you just re-mortgage and add on £7k?

If her share of the equity is just £7k there may not be enough in it to allow an increase in the mortgage. In any case consolidating this payment into a secured loan over 25 years is something not always seen as desirable on these boards.

james3333

so is a loan the best option then?
i dont want to get involved in having to pay fees for re-mortgaging etc.

Richard_Webster

Can't you get a further advance from your present lender?

Debt_Free_Chick

james3333 wrote: »

so is a loan the best option then?
i dont want to get involved in having to pay fees for re-mortgaging etc.

If the mortgage is in joint names you'll need to remortgage anyway. Getting her name off the deeds and getting the money to her is all part of the remortgaging process.

If you do decide to get a loan, then discuss this with your solicitor. It must be clear that she's had her share, so don't make a payment directly to her - go through your solicitor.

chappers

If you are both in agreement over the terms of the transfer of equity then there is no reason why you should need two solicitors, if say you use her solicitor and you have any questions about the lehgal arrangements laid out he is bound legally not to lie to you about the arrangements. ie if you asked him would this be the full and final settlement , he replied yes and it turns out she would still have rights , then he would be breaking the law. He may refuse to answer your questions but that is a different matter.I would only appoint a second solicitor if you are unsure of anything in the transfer of equity.
Are you sure you have worked out the payment requested the way i would do it would be, assuming you have both made equal contributions to the property and are joint owners then:
get three valuations and take the average, and then deduct the outstanding mortgage from this figure remove any deposit paid by each of you ,pay your ex her share of this (if you both put up equal deposits then ignore this. I would then take out the legal fees for the transfer and divide the remainder between you.

SquatNow

If you can only JUST afford the mortgage on your own then it's time to sell.

A slight increase in interest rates will leave you screwed.

Also, your 14k "equity" in the house isn't real money. If you try and sell now you'll see it doesn't exist. If you are lucky you can sell the place and pay off the outstanding mortgage. If you are unlucky you'll need to get a small unsecured loan to pay off the negative equity.

Put simply: DO NOT LET YOUR EX LEAVE YOU WITH THE NEGATIVE EQUITY.

That's what will happen if you do what you plan. She'll end up with 7k and you'll end up with the negative equity.

Sell the place as fast as you can.