I'm quoting you!
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
I'm trying to get my ducks in a row after a split from my long term partner and am planning on making her an offer to buy her out of the house. We currently have about £30k left on the mortgage, but also £30k in an ISA so are effectively mortgage free. To buy her out, I feel a fair offer is £110k. The house is now worth £350k and I put £110k in at the start while she put 5. It's a low offer, but it would be quick and she also wouldn't be liable for any fees which I hope will swing it in my favour. I've got the savings to buy her out outright, but it would wipe out nearly my entire life savings so I'd rather raise at least half through a remortgage if possible.
Luckily my fixed rate term is up at the end of December and we were just going to dump the £30k in to finish the mortgage. Is it as simple as contacting my provider, remortgaging for £60k (or just give her the £30k and remortgage for an extra £30k) while removing her name from the mortgage and then contact a solicitor to get her name removed from the deeds?
Luckily my fixed rate term is up at the end of December and we were just going to dump the £30k in to finish the mortgage. Is it as simple as contacting my provider, remortgaging for £60k (or just give her the £30k and remortgage for an extra £30k) while removing her name from the mortgage and then contact a solicitor to get her name removed from the deeds?
Soldato
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I'd have thought it's as easy or difficult as you 2 make it to be. If she's easy and agrees to easy path, then do as you please.
If you give her that £30k, isn't that only £15k of yours if its 50/50 atm.
Did you get the house split by a percentage when you bought it? I put in £60k while my partner put in £5, of a £425k house, but in the end, the difference of ownership is something like 54 percent mine, 46 percent hers. So you may find that the £110k offer feels low, especially as you'll end up with a house, while she may end up renting and so just wasting that money until she can buy, so in reality she may want the value of say a years rent too, or perhaps you can offer to pay her rent for 1 year so that she can find another place, and reduce your instant initial costs.
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Not a chance I would be parting with that much having put in 22x as much into the purchase of the house than she did, but that's just me.
The circumstances of the separation might influence that however e.g. if I cheated and this led to the breakdown then I would be more willing to give more. Likewise, if the breakdown was due to her actions, I would be putting my foot down with the buy out
The circumstances of the separation might influence that however e.g. if I cheated and this led to the breakdown then I would be more willing to give more. Likewise, if the breakdown was due to her actions, I would be putting my foot down with the buy out
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Pretty much, it cost us £225k in 2015.
Luckily, we're amicable at the moment, still living together but in separate rooms. However, it's absolutely sending me loopy. Annoyingly we didn't get it split when we bought. But afterwards, we've always said we'd take out what we put in if anything happened and split the rest. Apart from the initial deposit, we've split everything right down middle, 50/50, despite her earning nearly 3x what I earn.
It's either that, or I just use it to pay off the remaining £30k on the mortgage and take out an additional £60. Works out the same in the end.
I've also sunk about £5k into planning, architects and builders this year as we were planning an extension. This has gone to the wind, which is annoying as she knew she was leaving and she didn't do anything to stop me spending that.
Bingo. Fully on her, despite her blaming me. There has been someone else since July and her head has been turned, hence why I was inclined to lowball.
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Soldato
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But is that true?
I haven't done the maths, but what are the totals for this.
Take out what was initially put in.
So the user gets £60k, their partner gets their £5k back, now work out the full cost of every payment and make sure to include interest. Split that 50/50.
How much has the partner now "paid", and how much the user here. I'm willing to be it's not x22 the amount but much closer.
At the moment my mortgage (if we weren't over paying each month) should only be reducing £400 per month, the other £1k goes to interest.
So if I splith my ex, I'd give her back her £200 per month, calculated by x many years and months, and happy days for me, she paid my interest and doesn't get that back.
The house cost us £225k, I put in £110k and she put in £5k, the bank thinks the house is now worth £350k. Apart from the initial deposit, everything was 50/50. If we sell for £350, take out the £110 and £5, that leaves £235. Divide that between us both is £117.5 and plus her £5 is £122.5k. If I buy her out, she won't have to pay mortgage fees or solicitors, so I was thinking £110k is a good starting point.
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Soldato
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Including all your monthly payments and interest, you've paid only £225k? I guess the house was purchased for a lot less than that?
Your figures also exclude all her future fees. You won't have any, no stamp duty, no broker fees etc, but she will to purchase a house.
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That was our initial buying price, we took out a mortgage of £110k in 2015 and we cleared it at the start of this year, well £30k left and £30k in an ISA. I'm not sure what the total payments including interest have been, but we've been on around 1.5% over this time give or take.
Good luck with this. I assume you aren't married currently so it might be easier to get back what you put in but it probably depends if she decides to dig her heels in.
By all accounts you are offering a fair settlement which is nice to see. Far too many people seem to want to work out the equity based on deposit input when it comes to the increased value of a house. ie. you would get about 90% of the increase in value of the property.
Its tricky but if shes reasonable and you can keep it out of the hands of solicitors and lawyers as much as possible you will be far better off.
By all accounts you are offering a fair settlement which is nice to see. Far too many people seem to want to work out the equity based on deposit input when it comes to the increased value of a house. ie. you would get about 90% of the increase in value of the property.
Its tricky but if shes reasonable and you can keep it out of the hands of solicitors and lawyers as much as possible you will be far better off.
Personally I'd move. But that's me. I'd rather just sell, divide and move on. Especially if you are near end of term.
I like the house and if I move, I'd lose my koi and gym. It would also take us much longer and I can't afford to move out without selling. Who knows, in the future, I might sell, but I don't want it dragging on for months with both of us living together as I'm actually losing the plot.
That was my aim, be amicable, be fair and try and keep it out of solicitors as much as possible as no one wins at that point. I'm hoping she thinks the same.
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I wen't through similar recently so the below is based on my experience and legal advice I received at the time. I'm in Scotland so the detail of legality may differ. My other half was long term partner, not married, 50/50 title to house and joint on mortgage, no dependant kids. I paid larger deposit and I paid all the mortage payments during the term.
I'm afraid "who paid what" in terms of deposit and long term mortage payment is likely to be irrelevant. That is assuming 50/50 title ownership and that you have no other legal agreements covering this eventuality. Legally, she will be entitled to half the house. If there's a £30k mortgage and the house is valued at £350k, your partner will likely be entitled to half of the net value, so half of £320k, £160k less any fees/costs, which if either of you get "legal", will mount up very quickly.
Of course, you may reach an amicable settlement, but I guarantee at some point someone will drop the pearls of wisdom that she is entitled to "more".
Yeh, I realise this, that's why I want to be fair and friendly and get the offer sorted before anyone gives her any "advice".
I appreciate that but if I was you, I'd be assuming you'd have to pony up £160k to buy her out, as a base line scenario. Any better than that, you've done well.
Soldato
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In that case you might be better off making a generous offer.
She has everything to gain by going through a solicitor.
Hope it goes well. People can change once the dust settles. After all you are now kind of "strangers" and you might not get what you're after.
Sometimes it seems like 5k here and there on a house is a little bit of money. But you wouldn't give 5k to a random stranger.
when she gets some advice (im sure she will) it might not be so amicable.
As said, good luck though!
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Soldato
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How, given other than the deposit, which wasn't 90 percent of the house, the rest is paid 50/50.
My advice is to seriously watch the film "marriage story" and see how quickly things change. Lawyers are the winners here, and they would prefer you to have issues.
My feelings too.
At the user has said they can't afford to move, have things that want at this house, location, etc, these things have a value that hasn't been taken I to account.
If the user has to sell and move, what are tbsoe costs plus stamp duty, all the fees etc. This is what the user should pay to stay unfortunately. But any less then that's a good result for the user.
I feel for you user. I hope there aren't kids to complicate things further