Mortgage Rate Rises

If it was me? I think I'd be hoping to get it all done for around 130k (you handing over).

I kind of agree with your cost split. But if was the other person I'd be wanting some more than the maths because of having to buy somewhere else. Which you won't have to do.

On flip side. Selling might mean it's valued at less thackeray 350 so she might get less than your offer.


110 is probably a reasonable start. But I'd expect to pay more.
 
unwashed potato! said:
How, given other than the deposit, which wasn't 90 percent of the house, the rest is paid 50/50.
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Because the assumption is that they gave up x amount more money x years ago into the mortgage which would have made them money if invested. Both parties saved money on interest, favourable interest rate. The additional deposit might have allowed them to get a larger house ie. a 20% increase in the market on a £200k house vs the 20% increase on a £400k house is 80k vs 40k.

If you play a game of what if and assume that the deposit contributions essentially dictated the ownership split at the start and payments from then on dilute that, its quite easy. In theory its not fair that one person put in £105k 10 years ago. If he instead contributed £5 like his partner then he would be worse off from the interest/equity point of view but he would still have seen the same price growth in the house and if he stuck the other £100k in the markets at a conservative 8%/year growth rate he would be look at having £115k more now.

None of these things can realistically be fair when you go in unequally to start.
 
unwashed potato! said:
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.
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My "22x" was relating solely to the deposit itself.

I appreciate there is more info now been supplied and @Street has stated that the mortgage was paid 50/50 so, for me, I think the sums should work out as this:

£225k Purchase Price
Person 1 puts in £110k (49% of value)
Person 2 puts in 5k (2% of value)
Balance - is £110k (49% of value)

£350k selling price (assumed from value for this example)
Person 1 gets 49% of this value - £171.5k
Person 2 gets 2% of this value - £7k
This leaves 49% left - £171.5k which is split down the middle at £85,750 each on top so:

Person 1 gets £257,250 from sale (£171,500 + £85,750)
Person 2 gets £92,750 from sale (£7,000 + £85,750) and therefore should be the "buy out" value.



I appreciate this is a very simplistic approach
 
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Street said:
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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Fingers crossed but these things are rarely logical when you are breaking up and tens of thousands are at stake. You could probably swing these numbers £50k in either direction quite easily based on the deposit, who feels like they have contributed more to the household in the time you've owned, how much you would be saving by not having to sell/buy again etc.

Oh and for the really fun part. As soon as one party thinks the other is trying to be greedy or unfair things will spiral very quickly.
 
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Maybe if she earns three times what you do, you will be shown the door.

I don't know nor want to know your ages and how long you have lived together but all this adds equity to the relationship. Over the years your 110k equity diminishes and her 5k equity grows purely from your living together. A straight percentage extrapolated from the deposit is for the birds. How about fittings and furnishings, I suppose she owns half? Personally I would take legal advice.
 
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I sorta think you need to accept that 50/50 is the way. We were in a similar situation with my wife and I accepted that my initial investment into it is gone and what ever happens, it’s 50/50.
 
grudas said:
I sorta think you need to accept that 50/50 is the way. We were in a similar situation with my wife and I accepted that my initial investment into it is gone and what ever happens, it’s 50/50.
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This. I put in over £100k to my wife's £30k but that's irrelevant if we split.

I'm afraid the time to sort out deposit shares was when you bought. After any reasonable period of time a court will rule all assets at 50/50 and any solicitor will tell her that.
 
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grudas said:
I sorta think you need to accept that 50/50 is the way. We were in a similar situation with my wife and I accepted that my initial investment into it is gone and what ever happens, it’s 50/50.
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covenantuk said:
This. I put in over £100k to my wife's £30k but that's irrelevant if we split.

I'm afraid the time to sort out deposit shares was when you bought. After any reasonable period of time a court will rule all assets at 50/50 and any solicitor will tell her that.
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I think you're both overlooking the fact that OP isn't married. There won't be a court order for a divorce. There are no shared assets etc since they aren't married.

If he can prove he had the higher deposit, it should be a cake walk to get it back again.
 
Well I went in at £110k and she came straight back with an OK but she wants access to my dog. I'm happy to sacrifice him for the odd weekend for an easy life. Just need to get the ball rolling and get things sorted before she changes her mind.

Is it just a straight forward thing of contacting my mortgage provider and a solicitor and telling them I want her removed from the deeds now?
 
ci_newman said:
I think you're both overlooking the fact that OP isn't married. There won't be a court order for a divorce. There are no shared assets etc since they aren't married.

If he can prove he had the higher deposit, it should be a cake walk to get it back again.
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Bring married or not may or may not affect distribution of assets. Being as she is the larger wage earners perhaps she wishes to avoid having to support her partner with a quick break and has already worked out the finance implications though.
 
You’ll need to speak to a solicitor regardless as part of the process of removing your partner off the mortgage so you should get proper advice from them.

The answer is very much dependent on if you are married/civil partners and when the asset was acquired (before or after said marriage).
 
b0rn2sk8 said:
You’ll need to speak to a solicitor regardless as part of the process of removing your partner off the mortgage so you should get proper advice from them.

The answer is very much dependent on if you are married/civil partners and when the asset was acquired (before or after said marriage).
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To be fair, my main question wasn't about the amounts, it was about what I need to do as I've never looked into it before and different places have told me different things.

Hagar said:
Bring married or not may or may not affect distribution of assets. Being as she is the larger wage earners perhaps she wishes to avoid having to support her partner with a quick break and has already worked out the finance implications though.
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I doubt that as she really isn't good with money. I've sorted every bill, purchase and decision over the last 10 years, she barely even knows where her money is.
 
Street said:
To be fair, my main question wasn't about the amounts, it was about what I need to do as I've never looked into it before and different places have told me different things.
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That’s the thing, the simple points in my post can very much can change the amounts.

For example, if you are married, the devolve settlement usually aims to achieve a balanced outcome, it’s rarely 50/50. Given she earns 3X wit you do, she has far more mortgage raising ability then you do and would be expected to take the hit on the current house. Likewise their pension growth while you are married and it’s future growth will also be factors in.

This is why we day, ‘get proper advice from a competent solicitor’. You don’t need to engage them for the entire thing and to negotiate on your behalf (avoid this as it will cost you a fortune) but you can pay for an assessment of what a reasonable settlement would look like based on your and your partners financial circumstances and what a court would sign off as reasonable.

If you are married it’s hardly ever as simple as 50/50.
 
b0rn2sk8 said:
That’s the thing, the simple points in my post can very much can change the amounts.

For example, if you are married, the devolve settlement usually aims to achieve a balanced outcome, it’s rarely 50/50. Given she earns 3X wit you do, she has far more mortgage raising ability then you do and would be expected to take the hit on the current house. Likewise their pension growth while you are married and it’s future growth will also be factors in.

This is why we day, ‘get proper advice from a competent solicitor’. You don’t need to engage them for the entire thing and to negotiate on your behalf (avoid this as it will cost you a fortune) but you can pay for an assessment of what a reasonable settlement would look like based on your and your partners financial circumstances and what a court would sign off as reasonable.

If you are married it’s hardly ever as simple as 50/50.
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For the third time today - he's not married. This is much simpler than people are making out.
 
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