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    • rhowes2000
    • By rhowes2000 17th Jun 17, 8:37 AM
    • 85Posts
    • 21Thanks
    Tenants in Common - House Sale
    • #1
    • 17th Jun 17, 8:37 AM
    Tenants in Common - House Sale 17th Jun 17 at 8:37 AM
    Good morning,

    Hoping some of you very knowledgable people can help. I have spent a lot of time researching online but I can't find the answer anyway.

    My ex partner and I bought a house in 2005. Long story short, I have lived alone in the house since 2015 (but we split in 2008). I agreed to buy her out, part cash sum (fully paid in 2015) and the other element was I became fully responsible for the secured loan against the house. I couldn't remortgage the house in to my name only as there wasn't enough equity. Therefore the mortgage and loan are still in joint names but I make all the payments.

    I am now looking to sell the house, as my ex partner was helpful and it's all amicable I offered a share of the house upon any sale. It's all very informal as we still get on well. I didn't specify what the share would be and she didn't ask.

    I am now looking to sell the property and there is likely to be money left over after paying the mortgage and loan off. My ex says the house is mine, I can do what I want with it etc and she will happily sign any documents to say so. The issue is, I don't want to remortgage now as I will be tied in for 2 years+ and I want to move in the next 6-8 months.

    Sorry this has become a very long winded way of asking a potentially simple question! If I were to sell the house what exactly happens with the money? We are tenants in common, split 50/50. Where does the money get paid? If it's paid equally in to our own accounts she may be reluctant to hand it back to me, if it all goes to my account (the account the mortgage is from) then I can give her a share. Just think it's easier to receive a share than hand back some money! Nothing shifty about it at all, just trying to avoid the situation turning sour.

    Thanks for reading this unexpectedly lengthy post!
Page 1
    • getmore4less
    • By getmore4less 17th Jun 17, 8:54 AM
    • 32,042 Posts
    • 19,226 Thanks
    • #2
    • 17th Jun 17, 8:54 AM
    • #2
    • 17th Jun 17, 8:54 AM
    if you are amicable then there are a couple of ways to work it out.

    the first should be based on the initial intention
    ie what you agreed at the time you bought, that's if you had one or can remember the intent at the time.

    a typical example of this would be equal share paying 1/2 deposit each and 1/2 the mortgage.

    At the time of the split* you work out the equitable shares and then the OH share (% stays fixed as you would own the rest.
    you can then adjust that costs.

    Some prefer to keep the agreement going and adjust the virtual rent for the mortgage share(IE they move out you owe them rent for their bit they owe you mortgage payment)

    what sort of numbers are you looking at.

    Initial purchase(cash input and mortgage)
    value and mortgage at time of split.
    value and mortgage now/sale time.

    if you get the agreement in place the solicitor should put the surplus funds where instructed by both of you.

    * there may be multiple dates her as you split and occupied at different time so the agreement/payments might need some sorting.
    • rhowes2000
    • By rhowes2000 17th Jun 17, 9:03 AM
    • 85 Posts
    • 21 Thanks
    • #3
    • 17th Jun 17, 9:03 AM
    • #3
    • 17th Jun 17, 9:03 AM
    Hi getmore4less, appreciate the response thank you.

    Initial purchase price was 90k, 100% mortgage. Agreed everything 50/50.

    Including the loan, there is around 90k outstanding. House should sell for 125-130k.

    I've no idea on the house value or mortgage balance at the time of split unfortunately. It was in 2008.

    Would you know how the money is paid out when a house is sold? I.e do we get cheques? Does it go in to a bank account? If so which account etc?
    • da_rule
    • By da_rule 17th Jun 17, 9:26 AM
    • 2,636 Posts
    • 2,323 Thanks
    • #4
    • 17th Jun 17, 9:26 AM
    • #4
    • 17th Jun 17, 9:26 AM
    Solicitors will do either cheque or bank transfer depending on the specific firm. You can specify who to make the cheque payable to or which account to pay into etc. If the house is still registered in both you and your ex's name then you will both have to instruct the solicitor and both sign the transfer deed.

    As it seems you've come to an amicable agreement then it may be an idea to put it into writing just in case anything turns sour in the future.
    • darkman13
    • By darkman13 17th Jun 17, 9:27 AM
    • 76 Posts
    • 5 Thanks
    • #5
    • 17th Jun 17, 9:27 AM
    • #5
    • 17th Jun 17, 9:27 AM
    My dad sold a property few years a go and my mom were joint owners, solicitors just asked her to write in and say, all proceeds from sale can be transferred to husband as they do not have joint accounts, thats all it was.
    • rhowes2000
    • By rhowes2000 17th Jun 17, 9:33 AM
    • 85 Posts
    • 21 Thanks
    • #6
    • 17th Jun 17, 9:33 AM
    • #6
    • 17th Jun 17, 9:33 AM
    Thanks da_rule and darkman13, much appreciated. That clears it up for me.
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