Buying Out (Property)

[Ikemi]

Basically my girlfriend and I have decided to part ways, but we currently own a flat together. I believe the split is 50/50. However I put down 100% of the deposit and paid any fees required, which unfortunately at the time, included stamp duty. We've also split the mortgage payments according to our salaries, so I've been paying more per month.

I'd like to buy her out of the flat, but I'm not entirely sure how much to offer? She has paid £270 per month for the last 30 months. She is also happy to repay any debts/fees owed to me when we first moved in, which accumulates to around £1500.

I was thinking £270x30 (£8100) - £1500 = £6600?

Effectively though, this would mean that she would have been living rent free. I don't want to rip her off, but at the same time she doesn't want to rip me off either. What would be a fair settlement? We're arranging to see the solicitors soon too, in order to draw up the necessary papers to transfer ownership. Any suggestions are much appreciated!

[robnokia]

I'd work out how much of the mortgage was repayment and how much of it was interest and I'd offer her the repayment percentage.

[Ikemi]

anonymous said:

[redacted]

Blimey! Well, it's certainly a learning curve I'll do my best to answer your questions ...

1. what's it worth compared to what you paid ? I wouldn't have thought the price of our flat would've moved much in 2 years, or at least not substantially.
2. do you own as join tenants, not tenants in common (i.e you own all of it together rather than in distinct proportions) I have to admit, I'm not sure on this. I would have to check with our solicitors and the papers we signed before moving in.
3. the SDRT is irrelevant Not sure what SDRT is, but I'm guessing it's deposit/fees etc?
4. manmath doesn't work - she could easily and will probably say that she earned less and paid less because she did all the work round the pace - true or not, who cares.... it still wastes time and money
5. you seem to be inferring it's a mutual easy breakup and then that you want to be fair, but then trying to find ways to keep more money in your pocket.... Fortunately it is a mutual and easy break up I'm quite happy to give her £6K or so if that's the done thing. Just wanted to check with the financial experts here first, as at the age of 26, it's the first time I've ever done this. I don't want to sell the flat though, as I'd rather keep it and rent it out.

anonymous said:

[redacted]

Surely that would only work if we were selling the property?

Thanks for you help Tonker!

[langy]

Good luck...... Had a similar issue a good few years ago and i got fleeced.

[walm]

I may well be wrong here but if you buy her out - you may end up paying stamp duty again - no?

[Ikemi]

Cheers for the help! We've arranged to meet with a local solicitor, who specialises in transfer of equity, in 2 weeks time. Hopefully we can then sort out a fair agreement ... The split is amicable; she wants to move closer to family 230 miles up North, I want to stay in the South.

[Ikemi]

I've just spoken to a solicitor who specialises in transfer of equity procedures. The solicitor mentioned that the buy out value is something that they cannot help with and ultimately is a figure that both my ex-OH and I have to decide on e.g. what is fair/affordable to both of us.

I also need to speak to my mortgage lender to see if they will remove my ex-OH from the mortgage paperwork, as the solicitors cannot go through with a 'ToE' without this happening first.

It sounds like a right pain in the arse; one of life's little experiences though!

[anonymous-user]

Ikemi said:

I've just spoken to a solicitor who specialises in transfer of equity procedures. The solicitor mentioned that the buy out value is something that they cannot help with and ultimately is a figure that both my ex-OH and I have to decide on e.g. what is fair/affordable to both of us.

I also need to speak to my mortgage lender to see if they will remove my ex-OH from the mortgage paperwork, as the solicitors cannot go through with a 'ToE' without this happening first.

It sounds like a right pain in the arse; one of life's little experiences though!

If you haven't already you better make sure that your income will be enough to get the mortgage co to take her off the mortgage. A friend of mine is in a similar situation but despite earning a good salary and the mortgage being "affordable" to him, the mortgage co will not take his partner off the mortgage.

[Brother D]

I went through this a few years ago, we both agreed on a fair price in what we would get each if we sold the house and parted ways. - Can't remember if I had to pay stamp duty again as it was effectively a sale. (I think we somehow managed to dodge that)...

[rsv gone!]

Stamp duty would be due on the share of the flat you are buying. If that is below the SD threshold then nothing to pay.

eg 200k flat so 50% share would be 100k, which is obviously below the current threshold of circa 120k. No SD due.

Edited by rsv gone! on Wednesday 15th August 21:28