Selling house advice
Discussion
Hi all. My brother and his girlfriend have split and she wants to pay him £2000 to transfer the mortgage into her name.
He wants a bit more than that but she doesn’t believe there is enough equity in the house to warrant it.
Could someone check on my (correct/ incorrect) working outs to see if I have the right equity amount?
House bought for £112k.
Put a £6k deposit down.
Government paid 20% of £106k, £21200.
Took mortgage down to £85k.
Nearly 3 years mortgage payments of £395 has took nearly £8k off.
£77k owed.
Government take 20% of sale when sold, which if sold for £115k would be £23k.
Add to £77k mortgage is £100k.
£2k early repayment charge plus estate agent and solicitor would mean around £11,000 equity in the house.
I know it would probably be easier him ringing up his mortgage provider but she dealt with the mortgage and has said the H2B loan wipes out the majority of the equity.
Thank you.
He wants a bit more than that but she doesn’t believe there is enough equity in the house to warrant it.
Could someone check on my (correct/ incorrect) working outs to see if I have the right equity amount?
House bought for £112k.
Put a £6k deposit down.
Government paid 20% of £106k, £21200.
Took mortgage down to £85k.
Nearly 3 years mortgage payments of £395 has took nearly £8k off.
£77k owed.
Government take 20% of sale when sold, which if sold for £115k would be £23k.
Add to £77k mortgage is £100k.
£2k early repayment charge plus estate agent and solicitor would mean around £11,000 equity in the house.
I know it would probably be easier him ringing up his mortgage provider but she dealt with the mortgage and has said the H2B loan wipes out the majority of the equity.
Thank you.
H2B will just take 20% of any increase. Why is she throwing in estate agent fees and early redemption charges when it is not being sold? Pretty sure she can just port the mortgage so no ERC.
He should be getting half of the deposit, half of the increase in price (after the 20% for H2B) and half of his re-payments minus the interest.
He should be getting half of the deposit, half of the increase in price (after the 20% for H2B) and half of his re-payments minus the interest.
CharlieH89 said:
Hi all. My brother and his girlfriend have split and she wants to pay him £2000 to transfer the mortgage into her name.
He wants a bit more than that but she doesn’t believe there is enough equity in the house to warrant it.
Could someone check on my (correct/ incorrect) working outs to see if I have the right equity amount?
House bought for £112k.
Put a £6k deposit down.
Government paid 20% of £106k, £21200.
Took mortgage down to £85k.
Nearly 3 years mortgage payments of £395 has took nearly £8k off.
£77k owed.
Government take 20% of sale when sold, which if sold for £115k would be £23k.
Add to £77k mortgage is £100k.
£2k early repayment charge plus estate agent and solicitor would mean around £11,000 equity in the house.
I know it would probably be easier him ringing up his mortgage provider but she dealt with the mortgage and has said the H2B loan wipes out the majority of the equity.
Thank you.
I'm lost on the maths here:He wants a bit more than that but she doesn’t believe there is enough equity in the house to warrant it.
Could someone check on my (correct/ incorrect) working outs to see if I have the right equity amount?
House bought for £112k.
Put a £6k deposit down.
Government paid 20% of £106k, £21200.
Took mortgage down to £85k.
Nearly 3 years mortgage payments of £395 has took nearly £8k off.
£77k owed.
Government take 20% of sale when sold, which if sold for £115k would be £23k.
Add to £77k mortgage is £100k.
£2k early repayment charge plus estate agent and solicitor would mean around £11,000 equity in the house.
I know it would probably be easier him ringing up his mortgage provider but she dealt with the mortgage and has said the H2B loan wipes out the majority of the equity.
Thank you.
How much can he (and her) prove they put down as a deposit?
How much if the house worth today?
These are the main points.
You can add how much he has paid off the capital, but expect this to be taken off the resale value after the 20% HTB payback (for this calculation) and the fact he had the benefit of living in it during this time. I simply wouldn't even go there.
His share of the deposit and his share of the increase in value is the starting point.
Selling costs do not come into it if she is not selling.
House was bought for £112k.
It’s a new build on an estate where no sales have been since, so without a valuation for arguments sake say it is £115k now.
He put the majority of the £6k down.
Mortgage payments are £390 a month and it was bought in December 2016.
She wants to take the house on and he wants rid.
His choices are to sell or get a sum off her and thats why I’ve tried to calculate the equity figure, so that they can come up with a worthwhile sum that they are both happy with.
It’s a new build on an estate where no sales have been since, so without a valuation for arguments sake say it is £115k now.
He put the majority of the £6k down.
Mortgage payments are £390 a month and it was bought in December 2016.
She wants to take the house on and he wants rid.
His choices are to sell or get a sum off her and thats why I’ve tried to calculate the equity figure, so that they can come up with a worthwhile sum that they are both happy with.
CharlieH89 said:
Hi all. My brother and his girlfriend have split and she wants to pay him £2000 to transfer the mortgage into her name.
He wants a bit more than that but she doesn’t believe there is enough equity in the house to warrant it.
Could someone check on my (correct/ incorrect) working outs to see if I have the right equity amount?
House bought for £112k.
Put a £6k deposit down.
Government paid 20% of £106k, £21200.
Took mortgage down to £85k.
Nearly 3 years mortgage payments of £395 has took nearly £8k off.
£77k owed.
Government take 20% of sale when sold, which if sold for £115k would be £23k.
Add to £77k mortgage is £100k.
£2k early repayment charge plus estate agent and solicitor would mean around £11,000 equity in the house.
I know it would probably be easier him ringing up his mortgage provider but she dealt with the mortgage and has said the H2B loan wipes out the majority of the equity.
Thank you.
The HTB loan would have been 20% of the purchase price of £112k, so £22,400.He wants a bit more than that but she doesn’t believe there is enough equity in the house to warrant it.
Could someone check on my (correct/ incorrect) working outs to see if I have the right equity amount?
House bought for £112k.
Put a £6k deposit down.
Government paid 20% of £106k, £21200.
Took mortgage down to £85k.
Nearly 3 years mortgage payments of £395 has took nearly £8k off.
£77k owed.
Government take 20% of sale when sold, which if sold for £115k would be £23k.
Add to £77k mortgage is £100k.
£2k early repayment charge plus estate agent and solicitor would mean around £11,000 equity in the house.
I know it would probably be easier him ringing up his mortgage provider but she dealt with the mortgage and has said the H2B loan wipes out the majority of the equity.
Thank you.
£395pm for 36 months = £14,220...........I would be VERY suprised if in the first three years of a mortgage that £8k of that wpould have been capital.
£112,000 - £6000 - £22,400 = £83,600 mortgage would have been taken if your figures are correct.
The key is the currentvalue.....if it's gone up then so will the value of the HTB loan, but also the quity in the property.
PS: No estate agent or ERC fees to pay if the property isn't being sold.............will cost about £500 in solicitors fees for the transfer of equity needed to transfer the property into her name.
Thanks for the expert info Sarnie.
The ERC and estate agent fees were added to get a figure that they would have if it was to be sold.
It’s either she takes over it or it is sold.
If she was to take over it does a fresh mortgage application solely in her name and affordability have to be done or does she speak to the bank and if her salary (£35k) is ok then he just has his name removed?
Thanks once again
The ERC and estate agent fees were added to get a figure that they would have if it was to be sold.
It’s either she takes over it or it is sold.
If she was to take over it does a fresh mortgage application solely in her name and affordability have to be done or does she speak to the bank and if her salary (£35k) is ok then he just has his name removed?
Thanks once again
xyz123 said:
alistair1234 said:
He should be getting half of the deposit, half of the increase in price (after the 20% for H2B) and half of his re-payments minus the interest.
Would that not mean he lived rent free for this time? Also, as above, each of them needs to deduct/take their original deposit contribution from the 'sale' balance before they split any gains in half.
If they can't agree on the value of the house, get a few Estate Agents in to value it.
Sarnie said:
Incorrect............it's 20% of the value of the property, not 20% of any increase.............
Yeah I assumed he knew they would take their original 20% of the purchase back as well. What I meant was they keep 80% of the price increase, whereas it seems the girlfriend is making out most will be gobbled up by the h2bBit of an update.
She wants the house.
She’s apparently spoke to Halifax who the mortgage is with and they have said she wouldn’t be able to have the house on her own.
Shes spoke to a broker and is currently trying to get a DIP with a different lender (?)
My brother wants £5k and she has said she will try and get that £5k on top of the mortgage in her own name.
Is that even possible? I weren’t aware that it was.
Their mortgage still has 2 years left on it I believe.
She wants the house.
She’s apparently spoke to Halifax who the mortgage is with and they have said she wouldn’t be able to have the house on her own.
Shes spoke to a broker and is currently trying to get a DIP with a different lender (?)
My brother wants £5k and she has said she will try and get that £5k on top of the mortgage in her own name.
Is that even possible? I weren’t aware that it was.
Their mortgage still has 2 years left on it I believe.
CharlieH89 said:
Bit of an update.
She wants the house.
She’s apparently spoke to Halifax who the mortgage is with and they have said she wouldn’t be able to have the house on her own.
Shes spoke to a broker and is currently trying to get a DIP with a different lender (?)
My brother wants £5k and she has said she will try and get that £5k on top of the mortgage in her own name.
Is that even possible? I weren’t aware that it was.
Their mortgage still has 2 years left on it I believe.
Yes it's possible........she/they will incur the Halifax ERC in the process...........She wants the house.
She’s apparently spoke to Halifax who the mortgage is with and they have said she wouldn’t be able to have the house on her own.
Shes spoke to a broker and is currently trying to get a DIP with a different lender (?)
My brother wants £5k and she has said she will try and get that £5k on top of the mortgage in her own name.
Is that even possible? I weren’t aware that it was.
Their mortgage still has 2 years left on it I believe.
Sarnie said:
CharlieH89 said:
Bit of an update.
She wants the house.
She’s apparently spoke to Halifax who the mortgage is with and they have said she wouldn’t be able to have the house on her own.
Shes spoke to a broker and is currently trying to get a DIP with a different lender (?)
My brother wants £5k and she has said she will try and get that £5k on top of the mortgage in her own name.
Is that even possible? I weren’t aware that it was.
Their mortgage still has 2 years left on it I believe.
Yes it's possible........she/they will incur the Halifax ERC in the process...........She wants the house.
She’s apparently spoke to Halifax who the mortgage is with and they have said she wouldn’t be able to have the house on her own.
Shes spoke to a broker and is currently trying to get a DIP with a different lender (?)
My brother wants £5k and she has said she will try and get that £5k on top of the mortgage in her own name.
Is that even possible? I weren’t aware that it was.
Their mortgage still has 2 years left on it I believe.
I sent you an email earlier on in regards to my own switch
CharlieH89 said:
Cheers Liam. Would the ERC have to come out of her/ his pocket before she took a mortgage out with a different lender?
I sent you an email earlier on in regards to my own switch
Who covers it is for them to decide..........if I were him, I'd argue that the ERC is hers to swallow if she wants to keep the house for herself............she might argue that the ERC would be incurred if they sold up also........I sent you an email earlier on in regards to my own switch
Sarnie, presuming there is no Trust Deed, is it not worth finding out if the couple had bought the property as Joint Tenants or Tenants in Common with an uneven split?
If TiC, the equity in the property should be split as per that agreement (including the share of any fees).
It is not necessarily 50/50 down the middle (although I appreciate if they had lazy conveyancers they were probably put down as Joint Tenants).
If TiC, the equity in the property should be split as per that agreement (including the share of any fees).
It is not necessarily 50/50 down the middle (although I appreciate if they had lazy conveyancers they were probably put down as Joint Tenants).
roadsmash said:
Sarnie, presuming there is no Trust Deed, is it not worth finding out if the couple had bought the property as Joint Tenants or Tenants in Common with an uneven split?
If TiC, the equity in the property should be split as per that agreement (including the share of any fees).
It is not necessarily 50/50 down the middle (although I appreciate if they had lazy conveyancers they were probably put down as Joint Tenants).
Indeed.....the OP's brother should be taking correct legal advice of course...........If TiC, the equity in the property should be split as per that agreement (including the share of any fees).
It is not necessarily 50/50 down the middle (although I appreciate if they had lazy conveyancers they were probably put down as Joint Tenants).
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