Help with break up... splitting the house.
Discussion
I realise I need to see someone proper about this, but I’d like some further opinions anyway.. so here goes (as short an sweet as possible!)...
Me & gf have split. Amicably so far (still both living at home together). Not married and no kids.
We have a house together, owned for 2.5 years, bought for £213k.
Valued at £240k last week (which she has agreed with as initially wanted to get three valuations and take an average)
Mortgage outstanding of £197k
Both put in £4.5k and my Dad gifted me £5k when we bought it which we also chucked in.
I don’t want to move/sell the house, so I have been selling my car/motorbike to raise funds to buy her out.
Here’s the bit I’m a little unhappy/unsure about...The whole time we have lived here, I’ve paid 70% of the total bills and she’s paid 30%. She believes, rightly or wrongly I don’t know, that the equity split is 50/50 regardless of the above. She has already agreed to ignore my Dad’s £5k gift, reducing the equity to £38k aka £19k each if doing a 50/50 split... Is she right? Is there any leg for me to stand on/reasoning regarding paying her less to buy out due to my larger monthly bills? Or does it just not work like that and I’m gonna have to stump up the full 50%? Just feels like I’m getting shafted a little bit that’s all...
Me & gf have split. Amicably so far (still both living at home together). Not married and no kids.
We have a house together, owned for 2.5 years, bought for £213k.
Valued at £240k last week (which she has agreed with as initially wanted to get three valuations and take an average)
Mortgage outstanding of £197k
Both put in £4.5k and my Dad gifted me £5k when we bought it which we also chucked in.
I don’t want to move/sell the house, so I have been selling my car/motorbike to raise funds to buy her out.
Here’s the bit I’m a little unhappy/unsure about...The whole time we have lived here, I’ve paid 70% of the total bills and she’s paid 30%. She believes, rightly or wrongly I don’t know, that the equity split is 50/50 regardless of the above. She has already agreed to ignore my Dad’s £5k gift, reducing the equity to £38k aka £19k each if doing a 50/50 split... Is she right? Is there any leg for me to stand on/reasoning regarding paying her less to buy out due to my larger monthly bills? Or does it just not work like that and I’m gonna have to stump up the full 50%? Just feels like I’m getting shafted a little bit that’s all...
Turkish91 said:
I realise I need to see someone proper about this, but I’d like some further opinions anyway.. so here goes (as short an sweet as possible!)...
Me & gf have split. Amicably so far (still both living at home together). Not married and no kids.
We have a house together, owned for 2.5 years, bought for £213k.
Valued at £240k last week (which she has agreed with as initially wanted to get three valuations and take an average)
Mortgage outstanding of £197k
Both put in £4.5k and my Dad gifted me £5k when we bought it which we also chucked in.
I don’t want to move/sell the house, so I have been selling my car/motorbike to raise funds to buy her out.
Here’s the bit I’m a little unhappy/unsure about...The whole time we have lived here, I’ve paid 70% of the total bills and she’s paid 30%. She believes, rightly or wrongly I don’t know, that the equity split is 50/50 regardless of the above. She has already agreed to ignore my Dad’s £5k gift, reducing the equity to £38k aka £19k each if doing a 50/50 split... Is she right? Is there any leg for me to stand on/reasoning regarding paying her less to buy out due to my larger monthly bills? Or does it just not work like that and I’m gonna have to stump up the full 50%? Just feels like I’m getting shafted a little bit that’s all...
A mate of mine moved in with his young girlfriend a few years backMe & gf have split. Amicably so far (still both living at home together). Not married and no kids.
We have a house together, owned for 2.5 years, bought for £213k.
Valued at £240k last week (which she has agreed with as initially wanted to get three valuations and take an average)
Mortgage outstanding of £197k
Both put in £4.5k and my Dad gifted me £5k when we bought it which we also chucked in.
I don’t want to move/sell the house, so I have been selling my car/motorbike to raise funds to buy her out.
Here’s the bit I’m a little unhappy/unsure about...The whole time we have lived here, I’ve paid 70% of the total bills and she’s paid 30%. She believes, rightly or wrongly I don’t know, that the equity split is 50/50 regardless of the above. She has already agreed to ignore my Dad’s £5k gift, reducing the equity to £38k aka £19k each if doing a 50/50 split... Is she right? Is there any leg for me to stand on/reasoning regarding paying her less to buy out due to my larger monthly bills? Or does it just not work like that and I’m gonna have to stump up the full 50%? Just feels like I’m getting shafted a little bit that’s all...
He paid for everything - deposit, decorating, furniture, mortgage, bills, the lot
However, the house was mortgaged and titled in both their names.
Within 6 months of moving in together, they split.
He had no choice but to split everything, including his (fairly substantial) deposit.
I went through a lot of nonsense with a divorce several years ago, the house sale being the main issue of contention. Two years in total. If you can afford the loss, stand it for the sake of an early outcome. It's just not worth the aggro to pursue it imo, unless it's a substantial sum.
Before you get carried away talk to your mortgage lender. It’s not as simple as buying her out and getting her off the mortgage and title.
You will need the bank to agree to a new mortgage with you as the only person on it. You are going to have to go through the same eligibility tests as you did when you bought, but on your own. The bank will also do their own valuation so don’t even bother asking anyone else to do one.
A few people I know have got themselves in this situation. It’s not straight forward.
You will need the bank to agree to a new mortgage with you as the only person on it. You are going to have to go through the same eligibility tests as you did when you bought, but on your own. The bank will also do their own valuation so don’t even bother asking anyone else to do one.
A few people I know have got themselves in this situation. It’s not straight forward.
Turkish91 said:
Here’s the bit I’m a little unhappy/unsure about...The whole time we have lived here, I’ve paid 70% of the total bills and she’s paid 30%. She believes, rightly or wrongly I don’t know, that the equity split is 50/50 regardless of the above.
It's what's commonly known as the Nuptials tax. Did you think it was free gratis?As others have already said it is a good deal really for the sake of 7.5K which could easily go if you end up arguing and paying solicitor fees.
The important thing is to see if the mortgage company are happy to have you on the mortgage on your own. If not you both have a problem as if both your names remain on the mortgage it causes both of you problems- for her getting another mortgage and you if you want to change the mortgage In anyway and if she has a bad credit rating in the future it will affect you getting a better mortgage deal in the future as you would be seen as higher risk.
So keep it simple pay up get the mortgage in your own name and move on
The important thing is to see if the mortgage company are happy to have you on the mortgage on your own. If not you both have a problem as if both your names remain on the mortgage it causes both of you problems- for her getting another mortgage and you if you want to change the mortgage In anyway and if she has a bad credit rating in the future it will affect you getting a better mortgage deal in the future as you would be seen as higher risk.
So keep it simple pay up get the mortgage in your own name and move on
Also consider early repayment fee on the mortgage when you change to one in just your name (if you're tied in to a fixed period that is).
I may be wrong here but when unmarried, there's no law that says it has to be 50/50 or any particular proportion split. A mate of mine recently split with his Mrs after 25 years which was amicable. They weren't married and he paid 100% of the mortgage and it was all in his name. She paid for various bills and food etc and raised 2 kids.
He remortgaged and took out some of the equity to 'buy her out', not that she was ever on the mortgage, and gave her about 30% of what the house was worth. I suppose she could've got solicitors involved to try and get more, but it was an amicable split so they left it at that.
Moral of the story.....keep it amicable.
I may be wrong here but when unmarried, there's no law that says it has to be 50/50 or any particular proportion split. A mate of mine recently split with his Mrs after 25 years which was amicable. They weren't married and he paid 100% of the mortgage and it was all in his name. She paid for various bills and food etc and raised 2 kids.
He remortgaged and took out some of the equity to 'buy her out', not that she was ever on the mortgage, and gave her about 30% of what the house was worth. I suppose she could've got solicitors involved to try and get more, but it was an amicable split so they left it at that.
Moral of the story.....keep it amicable.
Did you purchase the property as "joint tenants" or "tenants in common"? Take a look through your original purchase papers to see. If tenants in common then the actual split ratio will already be defined and you will have to go with that regardless. If joint tenants then you both own 100% of the property and its down to negotiation as to the exit deal. In the case of the latter, the current 50/50 deal you suggest she has tabled is better than getting solicitors involved which will quickly eat up any spare funds you may have anyway - moving on is probably more important at this stage, though that's easy to say with someone else's money.
Chimune said:
Turkish91 said:
The whole time we have lived here, I’ve paid 70% of the total bills and she’s paid 30%
What % of the cooking and cleaning did you do? :-P Seriously, sounds amicable just agree asap and move on!
Flumpo said:
Before you get carried away talk to your mortgage lender. It’s not as simple as buying her out and getting her off the mortgage and title.
You will need the bank to agree to a new mortgage with you as the only person on it. You are going to have to go through the same eligibility tests as you did when you bought, but on your own. The bank will also do their own valuation so don’t even bother asking anyone else to do one.
A few people I know have got themselves in this situation. It’s not straight forward.
This x 100.You will need the bank to agree to a new mortgage with you as the only person on it. You are going to have to go through the same eligibility tests as you did when you bought, but on your own. The bank will also do their own valuation so don’t even bother asking anyone else to do one.
A few people I know have got themselves in this situation. It’s not straight forward.
One step at a time.
You may not even be offered a mortgage in which case the property will need to be sold.
Plus, if you need to buy her out where are you getting those funds from ?
No disrespect, but 2.5 years ago you bought the property with minimal deposit including a gift from your Dad.
197k outstanding mortgage plus borrowing a further 19k to buy her out ?
That's a 216k mortgage on a property worth 240k (maybe), so at least a 90% mortgage.
On your own.
Lenders are tightening up.
Red 4 said:
Flumpo said:
Before you get carried away talk to your mortgage lender. It’s not as simple as buying her out and getting her off the mortgage and title.
You will need the bank to agree to a new mortgage with you as the only person on it. You are going to have to go through the same eligibility tests as you did when you bought, but on your own. The bank will also do their own valuation so don’t even bother asking anyone else to do one.
A few people I know have got themselves in this situation. It’s not straight forward.
This x 100.You will need the bank to agree to a new mortgage with you as the only person on it. You are going to have to go through the same eligibility tests as you did when you bought, but on your own. The bank will also do their own valuation so don’t even bother asking anyone else to do one.
A few people I know have got themselves in this situation. It’s not straight forward.
One step at a time.
You may not even be offered a mortgage in which case the property will need to be sold.
Plus, if you need to buy her out where are you getting those funds from ?
No disrespect, but 2.5 years ago you bought the property with minimal deposit including a gift from your Dad.
197k outstanding mortgage plus borrowing a further 19k to buy her out ?
That's a 216k mortgage on a property worth 240k (maybe), so at least a 90% mortgage.
On your own.
Lenders are tightening up.
A friend just got offered a 100% mortgage on not absurdly % rates.
Not sure if there were external factors in the banks decision, but sounds like it wasnt.
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