Buying the Ex out of house, protocol?
Discussion
Morning PH, need some advice with regard to buying my Ex GF out of our property.
Right background info. Bought a flat 2 years ago.
I put £15k in.
she put £5k in.
I pay the mortgage (£610), she pays the bills (c.£400).
My offer is along the lines of,
Get mortgage statement and work out how much we have paid off. She is then entitled to %50 of that + her £5k deposit + any profit we have made (getting valuations) + whatever we decide about our belongings.
When we bought it was decided that i'd pay for all the flooring/carpets (£2200) and she'd furnish it which came to around £4k.
We had a quick run round yesterday and she is expecting me to buy all of the things that she doesn't want to take with her (sofa/fridge/tv/cabinets/dining tables etc) off of her for full market price of what she paid. Surely if she's banging on about wanting everything 50% then technically I own %50 of all the stuff?
Also, what is the procedure with the mortgage company? Do I basically need to re-mortgage and involve solicitors again etc or is it as simply as letting them know, they satisfy themselves I can afford it and then cross her name out. I'm going to call them today, but I need to work out if its financially viable to buy her out of it'll be cheaper to sell it. She seems to be getting greedy IMO.
Right background info. Bought a flat 2 years ago.
I put £15k in.
she put £5k in.
I pay the mortgage (£610), she pays the bills (c.£400).
My offer is along the lines of,
Get mortgage statement and work out how much we have paid off. She is then entitled to %50 of that + her £5k deposit + any profit we have made (getting valuations) + whatever we decide about our belongings.
When we bought it was decided that i'd pay for all the flooring/carpets (£2200) and she'd furnish it which came to around £4k.
We had a quick run round yesterday and she is expecting me to buy all of the things that she doesn't want to take with her (sofa/fridge/tv/cabinets/dining tables etc) off of her for full market price of what she paid. Surely if she's banging on about wanting everything 50% then technically I own %50 of all the stuff?
Also, what is the procedure with the mortgage company? Do I basically need to re-mortgage and involve solicitors again etc or is it as simply as letting them know, they satisfy themselves I can afford it and then cross her name out. I'm going to call them today, but I need to work out if its financially viable to buy her out of it'll be cheaper to sell it. She seems to be getting greedy IMO.
The best money you could spend now will be a couple of hours with a Solicitor, she won't have the same rights as if you were married so that will be in your favour.
On division of assets you use current market value not retail price.
Regarding the mortgage you will have to reapply but you will need the ex to sign a few forms and usually a admin fee of about £200.
You also need her name of the Title Deeds for the Mortgage to go thru, should not cost more than £1000 with a Solicitor.
That is how it worked for me but I am in Scotland and the system may be slightly different.
Get proper advice from a Solicitor as despite costing a few hundred ££'s it could save you a lot more in the long run.
Best of luck
On division of assets you use current market value not retail price.
Regarding the mortgage you will have to reapply but you will need the ex to sign a few forms and usually a admin fee of about £200.
You also need her name of the Title Deeds for the Mortgage to go thru, should not cost more than £1000 with a Solicitor.
That is how it worked for me but I am in Scotland and the system may be slightly different.
Get proper advice from a Solicitor as despite costing a few hundred ££'s it could save you a lot more in the long run.
Best of luck
Thanks R1gtr, planning on booking citizens advice solicitor today to see what they can do.
Eric, everything in both names.
Tbh I think she may have screwed herself. She is under the illusion that because I've paid 15k of mortgage payments she is due £7500 for half her equity. Just spoke to the mortgage company we have only actually cleared 5, so 2500 for her.
Last night I offered her £9k + half any increase in property value.
If she wants to play hardball as far as I'm concerned f
k it, it's not my problem if she doesn't want a sofa she paid for. Take it with!
Eric, everything in both names.
Tbh I think she may have screwed herself. She is under the illusion that because I've paid 15k of mortgage payments she is due £7500 for half her equity. Just spoke to the mortgage company we have only actually cleared 5, so 2500 for her.
Last night I offered her £9k + half any increase in property value.
If she wants to play hardball as far as I'm concerned f
k it, it's not my problem if she doesn't want a sofa she paid for. Take it with! in regards to the mortgage, you'll have to prove you can afford the property on your own - whether you re-mortgage or stay with the same provider. And either way you have to engage a solicitor to handle the transfer of names on the deeds.
Also, as the property is in joint names, if the 'half' that you are transferring from her name to yours is over £125k then you will have to pay stamp - so providing the property price is below £250k you are ok.
Also, as the property is in joint names, if the 'half' that you are transferring from her name to yours is over £125k then you will have to pay stamp - so providing the property price is below £250k you are ok.
supersport said:
You will have to prove that you can afford it on your own though, which is often when it comes unstuck.
That's what I've always wondered about, must be tricky getting a remortgage when the household income has reducedIt's hard enough getting a mortgage with 2 salaries, never mind 1
Yep! remortgaging on a single salary. Go carefully as I had a mate who split from his wife within a year of buying a house together. It was all amicable and he bought her half out.
The Bank found out and pointed out that 4x, 5x, whatever the criteria is, his salary wouldn't cover the mortgage amount even though he found it easily affordable.
They wanted him out and he had to fight tooth and nail to stay on.
The Bank found out and pointed out that 4x, 5x, whatever the criteria is, his salary wouldn't cover the mortgage amount even though he found it easily affordable.
They wanted him out and he had to fight tooth and nail to stay on.
I should hopefully be ok. Mortgage is easily within the 4x, just over 3x my salary(by £3000). The only thing that counts against me is I now have an £11k loan which I didnt have when I took out the mortgage + its Jan and i've used my overdraft this month for the first time in aaaages...
Mortgage company said I can keep my low fixed rate (if the ex signs to say I can transfer) but I basically have to apply for a new mortgage.
ETA: my theoretical half is under £125k.
There was no written rule about what % of deposit came from which party. Technically it all came from my bank account (as her dad transferred directly to my acc). To be fair we are not arguing and its all fairly amicable but her demands took me by suprise yesterday. Part of my deposit was also a 'gift' from parents so id like to think she wont try to screw my parents!
Mortgage company said I can keep my low fixed rate (if the ex signs to say I can transfer) but I basically have to apply for a new mortgage.
ETA: my theoretical half is under £125k.
There was no written rule about what % of deposit came from which party. Technically it all came from my bank account (as her dad transferred directly to my acc). To be fair we are not arguing and its all fairly amicable but her demands took me by suprise yesterday. Part of my deposit was also a 'gift' from parents so id like to think she wont try to screw my parents!
Edited by S3_Graham on Wednesday 29th January 13:47
Citizens advice is a good start, you should hopefully get to take the mortgage on your own and might even get a better rate when you apply.
It can be a headache trying to sort things out which is why a Solicitor is your best bet as they will sort out who gets what in no time.
If you are worried about the loan affecting you applying for the mortgage could you borrow from your parents, get them to pay off loan or take out a loan to clear yours and you then make monthly payments to them.
It can be a headache trying to sort things out which is why a Solicitor is your best bet as they will sort out who gets what in no time.
If you are worried about the loan affecting you applying for the mortgage could you borrow from your parents, get them to pay off loan or take out a loan to clear yours and you then make monthly payments to them.
supersport said:
If it's in joint names then it will be 50:50.
I would say your offer seems quite reasonable, just add the lot up divide by two and give her profit if there is any.
You will have to prove that you can afford it on your own though, which is often when it comes unstuck.
No it won't, it will be based on contribution. I would say your offer seems quite reasonable, just add the lot up divide by two and give her profit if there is any.
You will have to prove that you can afford it on your own though, which is often when it comes unstuck.
You have two ways of dealing with this.
First of all forget who paid the bills etc. You made various agreements after you bought the place but didn't have a document drawn up saying who owns what.
Option 1:
Lets say the house cost £120K. You put in £15K. She £5K. Mortgage £100K. In %'s you put in 12.5%. She 4.17%. Mortgage Co 83.3%. In my book you own half of 83.3% + 12.5%, so 54.15%, therefore she owns 45.85%.
Get house valued by three agents, take average. Deduct outstanding mortgage. Pay her 45.85% of what's left. Tell her to take her furniture as you deem it too expensive.
Option 2:
Get house valued by three agents, take average, deduct outstanding mortgage, pay her 50% of what's left.
Come to an agreement about furniture.
Whatever you do get it sorted and do it through a Solicitor.
First of all forget who paid the bills etc. You made various agreements after you bought the place but didn't have a document drawn up saying who owns what.
Option 1:
Lets say the house cost £120K. You put in £15K. She £5K. Mortgage £100K. In %'s you put in 12.5%. She 4.17%. Mortgage Co 83.3%. In my book you own half of 83.3% + 12.5%, so 54.15%, therefore she owns 45.85%.
Get house valued by three agents, take average. Deduct outstanding mortgage. Pay her 45.85% of what's left. Tell her to take her furniture as you deem it too expensive.
Option 2:
Get house valued by three agents, take average, deduct outstanding mortgage, pay her 50% of what's left.
Come to an agreement about furniture.
Whatever you do get it sorted and do it through a Solicitor.
Sir Bagalot said:
You have two ways of dealing with this.
First of all forget who paid the bills etc. You made various agreements after you bought the place but didn't have a document drawn up saying who owns what.
Option 1:
Lets say the house cost £120K. You put in £15K. She £5K. Mortgage £100K. In %'s you put in 12.5%. She 4.17%. Mortgage Co 83.3%. In my book you own half of 83.3% + 12.5%, so 54.15%, therefore she owns 45.85%.
Get house valued by three agents, take average. Deduct outstanding mortgage. Pay her 45.85% of what's left. Tell her to take her furniture as you deem it too expensive.
Option 2:
Get house valued by three agents, take average, deduct outstanding mortgage, pay her 50% of what's left.
Come to an agreement about furniture.
Whatever you do get it sorted and do it through a Solicitor.
Option 1 sounds good, at the moment we are looking at pretty much option 2.First of all forget who paid the bills etc. You made various agreements after you bought the place but didn't have a document drawn up saying who owns what.
Option 1:
Lets say the house cost £120K. You put in £15K. She £5K. Mortgage £100K. In %'s you put in 12.5%. She 4.17%. Mortgage Co 83.3%. In my book you own half of 83.3% + 12.5%, so 54.15%, therefore she owns 45.85%.
Get house valued by three agents, take average. Deduct outstanding mortgage. Pay her 45.85% of what's left. Tell her to take her furniture as you deem it too expensive.
Option 2:
Get house valued by three agents, take average, deduct outstanding mortgage, pay her 50% of what's left.
Come to an agreement about furniture.
Whatever you do get it sorted and do it through a Solicitor.
We decided last night that first things first I get my 15k and she gets her 5k. Whatever has been paid off the mortgage is split 50/50. Whatever profit has been made on the property is split 50/50.
The furniture is a sore point. The way I look at it is that everything we bought is lumped together and value split 50/50, she looks at it that I should just buy the things she doesn't want/can't take as she's moving back to her parents.
Luckily my parents are in a good enough financial position, and have agreed to clear my loan so mortgage should hopefully go through.
Edited by S3_Graham on Thursday 30th January 11:03
furniture should be amicable split or she can take it...
She wants to play hard ball then the worst it will come down to is this:
£4k for the furniture
£2.2k carpets (think you said that or £2k)
£1.8k left on her behalf.
So the absolute max should be this value to make her whole as you will have all the furniture, make sure nothing is on finance with DFS, etc.
If you want to take wear and tear, then take 30% off or thereabouts as long as its not all under a year.
Use the above calculation to deduct any furntire she takes too.
£1k fridge originally
So you owe her circa £450 at brand new rates.
If you take wear an tear take 30% off so its roughly £315 owed to her
You could offer either depending on how you are feeling about her playing hardball.
(bit early for maths but looks correct)
She wants to play hard ball then the worst it will come down to is this:
£4k for the furniture
£2.2k carpets (think you said that or £2k)
£1.8k left on her behalf.
So the absolute max should be this value to make her whole as you will have all the furniture, make sure nothing is on finance with DFS, etc.
If you want to take wear and tear, then take 30% off or thereabouts as long as its not all under a year.
Use the above calculation to deduct any furntire she takes too.
£1k fridge originally
So you owe her circa £450 at brand new rates.
If you take wear an tear take 30% off so its roughly £315 owed to her
You could offer either depending on how you are feeling about her playing hardball.
(bit early for maths but looks correct)
Option 1
She accepts an amicable and reasonable offer from you for her share of house and fittings you both pay a smallish amount of fees and go your separate ways.
Option 2
You sell everything, the house the fittings the lot, all selling and legal costs are then shared between you both, you both take back your deposits and split any remaining cash, this option may take a considerably more time.
I know which she would get most from.
I selected option 1 when my ex girlfriend bought me out from our house many years ago, I even accepted the low valuation she obtained on the house knowing if I pushed for more she wouldn't have been able to afford option 1 and option 2 would have been a real pita.
She accepts an amicable and reasonable offer from you for her share of house and fittings you both pay a smallish amount of fees and go your separate ways.
Option 2
You sell everything, the house the fittings the lot, all selling and legal costs are then shared between you both, you both take back your deposits and split any remaining cash, this option may take a considerably more time.
I know which she would get most from.
I selected option 1 when my ex girlfriend bought me out from our house many years ago, I even accepted the low valuation she obtained on the house knowing if I pushed for more she wouldn't have been able to afford option 1 and option 2 would have been a real pita.
Gassing Station | Finance | Top of Page | What's New | My Stuff