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Buying house from ex partner - any advice

Discussion in 'Home and Garden' started by Apex, Feb 14, 2020.

  1. Apex

    Capodecina

    Joined: Feb 12, 2006

    Posts: 10,755

    Location: Surrey

    My friends currently going through a break up with a partner (luckily they aren't married nor have kids) that he owns a house with. It's not equal share he has a greater share and is wanting to keep the house, buying her share off her.

    I've advised he go speak to mortgage adviser which I guess is the best action?

    But also wanted try find out for him before he goes the likely outcome.

    They haven't had the house long, just under a year so very little of the mortgage has been paid off, and all the deposit was basically his.

    What happens in these situations? Can he likely just say you own say 35 percent or what equity we have, here it is, sign over your share to me and done? Or will he need a new mortgage, essentially buying the house again, pay stamp duty, legal costs etc, as well as run the risk that mortgage company may say his income isn't enough to do it alone?

    Luckily he's got a load of money saved up, well over what her share would come to from what we can see.

    Thanks.
     
  2. Quartz

    Capodecina

    Joined: Apr 1, 2014

    Posts: 10,888

    Location: Aberdeen

    He should see a solicitor first.
     
  3. rhysduck

    Soldato

    Joined: Oct 25, 2009

    Posts: 6,309

    Location: Nelson, South Wales

    If he has the funds then it would probably be best him speaking to his current mortgage provider to look at removing her from the mortgage and paying the ex off out of his own pocket.
    That way he doesn't have to pay new mortgage fees and exit fees (if applicable on the current mortgage). It's what I would have done if I could have afforded to pay off the ex when I split a few years back.

    No need to see a solicitor if everything is amicable, I didn't have one when I split. I met with my financial advisor who gave me the legal advise side (can't actually remember what i was told with regard to what the ex was entitled to, I THINK it was that she was entitled to her share of the equity based on % of deposit paid).
     
  4. Apex

    Capodecina

    Joined: Feb 12, 2006

    Posts: 10,755

    Location: Surrey

    I imagine his would be the same but you know break ups can get ugly so what she tries to do next and can do could be the issue
     
  5. rhysduck

    Soldato

    Joined: Oct 25, 2009

    Posts: 6,309

    Location: Nelson, South Wales

    Quite true, however he needs to stick to his guns as that's what she's entitled to and no more. Hope it works out for him and it's not too much stress for you :)
     
  6. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 33,346

    Who's name is on the title / deeds?

    That will need to be amended if hers are on it which means go speak with a solicitor.
     
  7. Apex

    Capodecina

    Joined: Feb 12, 2006

    Posts: 10,755

    Location: Surrey

    Both of theirs
     
  8. mrbell1984

    Caporegime

    Joined: Aug 9, 2008

    Posts: 25,082

    You won’t find out any real answers here apart from go see a solicitor.
     
  9. Apex

    Capodecina

    Joined: Feb 12, 2006

    Posts: 10,755

    Location: Surrey

    Just looking for possible outcomes really. Maybe some known people who've done similar and what the outcome, lessons learnt were etc
     
  10. mrbell1984

    Caporegime

    Joined: Aug 9, 2008

    Posts: 25,082

    Since they are both on the mortgage then they need to come to agreement on moving forward. If they sell the in-house and since they both signed I would say it would be 50/50 for any remaining funds after the house is sold.

    Might be wrong though but it’s just how I see it. :)
     
  11. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 33,346

    also if they are on a fixed deal and he buys her out. there will be early repayment penalties too.
     
  12. CapitalOne

    Wise Guy

    Joined: Nov 23, 2014

    Posts: 1,453

    Location: The Cronx

    Not always true, Nationwide for example will not charge early repayment if you remortgage with them.
     
  13. Psycho Sonny

    Caporegime

    Joined: Jun 21, 2006

    Posts: 33,346

    Yes they will I am with them and I can't until 3 months before it ends
     
  14. 413x

    Capodecina

    Joined: Jan 13, 2010

    Posts: 19,224

    Location: Cardiff

    Also have to be aware that might not be able to due to earnings.

    As in his salary might not get a big enough mortgage. At least that's an easy one to check
     
  15. DarkHorizon472

    Mobster

    Joined: May 16, 2007

    Posts: 3,188

    You first need to understand clearly the legal position for this specific case and then based on that the financial options on how to proceed.
     
  16. Usel

    Wise Guy

    Joined: Jan 14, 2003

    Posts: 1,071

    Depends what he had arranged with the solictor when buying the property.
    My deed of trust was setup so that I get paid back my deposit first and then the equity is 50/50 split the other method is to own a percentage based on purchase cost against deposit.
    Did he have a deed of trust?
    If he didn't protect his deposit then she is entitled to half that but depends how nice she is.
     
  17. Apex

    Capodecina

    Joined: Feb 12, 2006

    Posts: 10,755

    Location: Surrey

    Yes he did I believe. I am not 100 percent on their agreement but I know he said it was done that they own their own share of the house, he has more like say 60 percent and her 40 due to the deposit but then the rest of the mortgage bill and house bills are paid and split equally. It's as though they aren't partners but 2 random people buying a house.
     
  18. PurplePhoenix

    Gangster

    Joined: Sep 20, 2014

    Posts: 364

    Location: Southampton

    I hope he signed a an agreement with his X, otherwise it a 50/50 split. A good chance is he will have to sell the house as if he had the money in the first place he would of just brought the house in his own name. If he can keep the house , I would just submit a low ball offer to his X for a few k as a refund on her payments. End of the day His X is fighting over ownership of debt.
     
  19. Kamakazie!

    Wise Guy

    Joined: Jan 12, 2003

    Posts: 1,810

    I had this situation about a year after I bought with someone.
    There's 2 primary ways he may have protected his deposit:
    - Tenants in common can be used to specify unequal ownership of the property but generally used for unmarried couples either way iirc
    - Deed of trust stating the split of equity post sale

    In my case we went 50/50 on ownership as we were splitting the mortgage that way, but used a deed of trust to specify recovery of initial deposit first, after which remaining equity split as per ownership.
    Ours was an amicable split and the buyout was reasonable, whereby I paid back her share of:
    - The deposit
    - The capital paid off from the mortgage (interest was about the same as our old rent)
    - Costs to refurbish / furnish

    With finances agreed, the process was simple but required conveyancing and transfer of the mortgage into my sole name (only a small fee and was not classed as early repayment). I did have to extend the term out another 7 years though.
    No fees to pay other than conveyancing (Inc land registry) and mortgage.
     
  20. Apex

    Capodecina

    Joined: Feb 12, 2006

    Posts: 10,755

    Location: Surrey

    what about being access whether you can cover the mortgage repayment on your own? was that never a thing?