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How much am I morally entitled to if house valued aroun £250000

by trudihui1 11 August 2012 |

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My partner wants to buy me out as we have split up and I couldnt afford or want to keep the house. I got the mortgage (only in my name) and pay it monthly, he put down a large deposit of £80000 and spent around £35000 over the past year on improvements. He says Ive put no money in the house although I have spent thousands of man hours working in it and thinks Im entitled morally to only a pittance of £3-5000

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MikeGG1 posted
You don't say what the outstanding mortgage is or whose name(s) the house is in, or how much you paid towards the mortgage.

You have to split the equity (sale price minus cost of sale minus outstanding mortgage) taking into account his £115,000 and your mortgage payments.

If the house was in joint names, was there a Declaration of Trust which said what should happen in the event of a split? Unmarried couples buying together should always have one. Also was the split 50/50 and as 'Tenants in Common' or as 'Joint Tenants'. Unmarried couples should always be 'Tenants in Common'.

Mike
Posted on 11 August 2012 | Love 0 loves Report
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trudihui1 posted
Hello and thanks so much for the reply. The outstanding mortgage is £103000, the house is only in my name as he couldnt get a mortgage at that time as his credit was bad. I didnt have any money to put down as a deposit and Ive only put about £1500 in for the renovation because I havent excess cash like him. I dont want to take anything Im not entitled to and have asked that I have £15000 for a deposit for my next house. He says Im asking too much and Im in a dilemna because although I know legally Im entitled to a lot more, in fact the solicitor said when we bought the house it would have to be put as a gift, I know that isnt just or morally right.
Posted on 15 August 2012 | Love 0 loves Report
878

MikeGG1 posted
Sorry, I should have asked for the current value on a realistic sale basis, not what it would be marketed at.

You say you paid the mortgage. Did you pay all of it, or half, or what?

Mike
Posted on 16 August 2012 | Love 0 loves Report
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Mally posted
Hi, I would say the answer to what you are "entitled" to, for the circumstances you have detailed, is 50% of any equity in the property (Value of property minus outstanding mortgage and costs of sale). Strictly speaking you do not have to take into account the deposit provided by your ex partner as this was gifted, nor is it likely the funds he provided for home improvements would be taken into account.

I am assuming that as well as you only being named on the mortgage, this is the same in relation to the deeds to the property.

Too many times I apeak individuals who take this stance regardless of the background in relation to who provided deposit etc. and it is good to see that you only wish to take what you feel is morally right for your circumstances.

The answer to what amount you should take from a moral point of view is down to you but once you have a figure you believe is right you are in a strong position for this to be done.

Steve

Posted on 17 August 2012 | Love 0 loves Report
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fungus1487 posted
Legally
= ([sale price] - [outstanding mortgage] - [sale fees]) / 2
= (250k - 103k - [sale fees]) / 2
= 73.5k

Morally
= ([sale price] - [outstanding mortgage] - [his expenses] - [sale fees]) / 2
= (250k - 103k - 115k - [sale fees]) / 2
= 16k

You still need to factor in selling fees above and any extra cost.
Posted on 17 August 2012 | Love 0 loves Report
878

MikeGG1 posted
If you paid nothing towards the mortgage then morally, you should get
(£250,000 - £103,000 - £115,000 -£1,500)/2 + £1,500 = £16,750

If you paid some or all of the mortgage then it would be higher, depending on the original mortgage and the proportion that you paid.

Mike
Posted on 18 August 2012 | Love 0 loves Report
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trudihui1 posted
Thanks for your replies, weve agreed he buys the house from me for £113000 giving me £10000 as he cant afford any more. He says he will give me an extra £5000 in a couple of years time when the renovations are complete and time will tell whether he will do it or whether I have the need to accept it
Posted on 22 August 2012 | Love 0 loves Report
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trudihui1 posted
Thanks for your replies, I paid the mortgage for 10 months but weve now agreed he buys the house from me for £113000 giving me £10000 as he cant afford any more. He says he will give me an extra £5000 in a couple of years time when the renovations are complete and time will tell whether he will do it or whether I have the need to accept it.
Posted on 22 August 2012 | Love 0 loves Report
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trudihui1 posted
Thanks for your replies, I paid the mortgage for 10 months but weve now agreed he buys the house from me for £113000 giving me £10000 as he cant afford any more. He says he will give me an extra £5000 in a couple of years time when the renovations are complete and time will tell whether he will do it or whether I have the need to accept it.
Posted on 22 August 2012 | Love 0 loves Report
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trudihui1 posted
Re my partner buying me out. Can anyone help my next dilemna. Because the house is worth around £250000 can I sell him the house for £113000 (10 grand more than I owe) and gift him the rest so he doesnt have to pay a deposit?
Posted on 10 September 2012 | Love 0 loves Report
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Mally posted
As he is not on the mortgage or deeds the transaction will be classed as a sale rather than a transfer of equity. A lot of lenders would have a problem with it but there are a couple that may consider it, especially if he is resident at the property at the moment.

Your ex partner needs to speak to a mortgage broker who will carry out the necessary research to ascertain if there is a lender available that will help with his particular circumstances.
Posted on 12 September 2012 | Love 0 loves Report

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