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Splitting the equity of the house(11 Posts)
The house has been valued at £155000. There was 106000 left on the mortgage when I moved out 7 months ago. There is now 104000 left on the mortgage.
We have a 13 year old daughter who will stay with my ex wife. I'll be in a rented 1 bedroom flat fo for the next 4 years as my wife financially abused me and we now have 3 ccjs which we have both taken advise on and been advised to pay off together which we are doing.
I've offered this week my wife pay me nothing until my daughter is either 18 or 21(which ever age suits my wife best) then she either pays me £30000 at 18 or £33000 at 21.
But my wife says I'm just being totally unreasonable in terms of what I'm asking for. Can people please help me a little with the figure they would accept at 18 or 21 as I just feel trapped at the moment and I just need to start again. I thought I was doing my ex wife and good deal and a big favour and then I would have a solid foundation for getting on the housing ladder in a few years but she says I'm being selfish.
I think the only way to work it out is by agreeing a percentage you would both get now if the house was to be sold. Then get the house revalued when your daughter is 18/21 and compare it to the value when you stopped paying the mortgage and you get the agreed percentage of the equity at that point. If house prices drop it could put her in negative equity otherwise
That's left me even more confused. Sorry can you simplify it. It's just a 50/50 equity split and I need to think about my own future to that's all. Sorry I so stressed with this divorce now I could scream.
Don’t scream. Please don’t
I really think in your case you need to sort things out let legally .
I'm sorry I only just saw you had replied. So yes if you agree a 50/50 split then when it comes time for her to sell, you will be entitled to half of the equity but using the figure outstanding when you stopped paying towards the mortgage not the actual equity.
Broadly speaking you have 30% equity in the house. Half of that is 15%. So I would ask for 15% of the house value when it is sold or at 18. This is based on an assumption that house prices increase within the next 5 years. There are regional differences that might change my mind in which case I would agree a fixed sum now. £30k sounds about right if you assume a 3% annual increase.
You could agree to regional house price index to use to work it out. Halifax or equivalent. These are conservative.
Are you going to continue to pay towards mortgage? If not then 15% seems fair
50/50 is the starting point but if one parent has done more of the childcare/sacrificed career then this is often departed from in favour of the person who cared for the child. If your daughter is staying with your wife I assume she is the main carer?
There is only 50,000 in equity so I can see why she thinks 30/33000 is unreasonable.
Start at 50% and adjust up or down based on overall financial position and child related status( ie higher earners/ pensions/ primary carer responsibilities etc )
Can your ex afford to take over the mortgage and running costs
Whatever % is agreed is the share you receive at the trigger point. Yes she may be paying the mortgage but you’re having to pay rent. You are deferring your share which is tied up and not accessible . This is how a mesher would work based on those I’ve seen
Are there any pensions to consider ?
No I won't be paying the mortgage. I've agreed for her to have the house. We We have agreed to 50% equity each.I need to keep the pensions seperated for the moment just whilst we sort the house. She is a full time teacher. I'm also in full time work. We have both always worked full time.
I am basically offering her a mesher order but she seems to think I'm ripping her off.
What if house prices drop? It needs to be done on a percentage not a fixed amount
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