ex-girlfriend buying me out

chrisjefc

i bought an house with my girlfriend 6 years ago unfortunatly we split up a couple of months ago and i moved out

i asked her what she wanted to do witht he house and she said she would like to stay and buy me out

so i have agreed and told her to pay me what she can afford so she is re-morgaging the house and we have agreed that she will pay me £15,000 which is a lot less than i would have got if we sold the house

i'm happy with that but i just need one question answering am i expected to pay tax on the £15,000 that i get from her ?

because if i am then i wouldn't be happy with the amount and would go for selling the house instead

any help or info would be great

thanks

chris

PasturesNew

No. No tax due.

chrisjefc

thanks for the quick reply

:beer:

SquatNow

And you're probably getting a better deal than you think.

Allowing for costs and a forced sale in the current market... you've probably got a bargain.

Now put that cash somewhere safe... government bods etc, and sit on it for 5 years. Buy at the bottom of the crash... purchase outright.

hostman

SquatNow wrote: »

And you're probably getting a better deal than you think.

Allowing for costs and a forced sale in the current market... you've probably got a bargain.

Now put that cash somewhere safe... government bods etc, and sit on it for 5 years. Buy at the bottom of the crash... purchase outright.

Hardly, unless the house is worth 30k!

I'd be looking to sell the property, rather than allowing her to buy you out. Not out of spite towards an ex (unless she cheated!), but general financial desires.

poppysarah

Is £15k fair?

C'mon I want to hear the figures.

chrisjefc

poppysarah wrote: »

Is £15k fair?

C'mon I want to hear the figures.

well we had a morgage for 45k the house is worth around 90-95k

thing is we have a child so i think i'm probely lucky to be getting that but again i'm not sure how it all works out

i just didn't want the stress on the little un of moving and stuff

plus if i make it difficult for her then she will make it difficult for me to see the little un

she is also sorting all the soliciter stuff out as she works for a soliciter

poppysarah

As child is involved you want to make sure the excess equity she's getting is properly documented.


You should take some independent legal advice. Get half an hour free with someone to whizz thorugh things to point you in the right direction.

PasturesNew

I thought there'd be a child (or several) involved and a low-price property.

That was the only way it seemed to make sense.

Troubled_Joe

If you were not married then the fact there is a child is irrelevant (save for your ongoing CSA obligations).

The division of the property is regulated by the Trusts of Land and Appointment of Trustees Act 1996.

Go to see a solicitor and get their opinion on what a fair figure would be based on all teh facts.

If you hold teh property as beneficial joint tenants then 99% of the time you will be entitled to 50% of the equity regardless of deposit contributions or mortgage payments.

Troubled_Joe

poppysarah wrote: »

As child is involved you want to make sure the excess equity she's getting is properly documented.


You should take some independent legal advice. Get half an hour free with someone to whizz thorugh things to point you in the right direction.

The CSA don't allow capitalisation of child maintenance (the courts can though) so regardless of whether it is documented she may still make a claim at a later date.