ExDP buying me out of the house?

[prozacbear]

Hi All,

Apologies if this is garbled. Basically, ExDP and I are both complete rookies at these sorts of things, so advice would be appreciated.

ExDP and I own our home jointly. However, his parents put in a lot towards the mortgage and thus I have never felt the house is 'mine'. I'm now moving out (all very amicable) and have said that I would just like the value of what I've 'put into' the home i.e. mortgage payments, and in exchange will sign over ownership to him. Does this make sense?

Both ex and I think this is fair, as does ex-MIL. But I have no idea whether it's standard practice, is it?

Also, it seems it will take a long time to go through. I'm moving imminently and could quite do with the lump sum to fund this. Is it possible for ex and I to just sort the money between ourselves and then when the time to sign the papers comes, to just sign - or does the money have to be transferred through a solicitor?

As I say (and you can probably tell!), complete rookie at this. Any and all advice appreciated. Thanks!

[countydurhamlass]

usually you would work out the equity in the property, ie what is the property worth? minus the mortgage, minus what DHs parents have given you (could be argued as a gift and should be excluded). What is left is the equity. Then you would divide it equally between you and DH (assuming there is no children). that is what you would be entitled to. There is nothing stopping DH giving you a lump sum now (evidence of this could be transfer from his account to yours) and signing the paperwork afterwards, HOWEVER, the house is not dealt with separately to finances as a whole, pensions, savings, debts, assets are taken into account as a whole. as well as this nothing is final until a judge has approved it

Could you ask DH to give you a lump sum now which you will deduct from what you are entitled to overall? ie as an interim payment?

[mumof4sons]

Every one's divorce is different. I had friends who basically did their divorce through an online service. They were separating completely amicably and settled their finances (house, pensions, endowment policies, child maintenance) between them. So wish that had been my divorce, but that would be another thread.

With regards to the house, your exP will need to speak to mortgage provider to see if they will let him continue the mortgage with just his income - this is what I had to do. If approved, he will need to have a conveyancing solicitor to handle the transfer of the mortgage from joint names to a single name - land registry fee and searches have to be done.

If he has the lump sum to pay you, I don't foresee any problems..

[cestlavielife]

Is what you paid less or more than your share of equity based on current value minus the gift ?

[prozacbear]

Hi All,

Thank you for your help! Sorry it took so long to get back, rushed off my feet.

Ok, so we bought at 280k but value now will be at least 300k (rapidly up and coming area of london, just got a new train line, other houses on street) if not more.

His parents put in half the value in cash, which is a gift and belongs to exDP/his parents, of course. So half is left. We've not owned long so I've only put in about £5k towards the mortgage (as has exDP), and this was the amount I was expecting to get back. Right. This is not good, is it? No wonder ex-MIL was so happy with the arrangement.

We have one DC who we'll have 50% custody each, but informally. I've got a new place where he will be able to stay half the time, once it's done up. No other debts,

[prozacbear]

"usually you would work out the equity in the property, ie what is the property worth? minus the mortgage, minus what DHs parents have given you (could be argued as a gift and should be excluded). What is left is the equity"

Wait - sorry - and I did warn that I am horrid at maths! Ok, it's not bad. As far as I can work out, DP would owe me a little bit more than what we have agreed.

I think I'm going to call solicitor and ask. I'm sure this will all come out once ex goes to our solicitor, as it all has to be done through official channels.

[fubbsy]

What are the actual amounts?

From what you have written, I am guessing exDP parents gave £140,000 and the mortgage was initially for £140,000. Assuming you have not paid off much of the mortgage, the outstanding amount might be £138,000. If the house is worth £300,000, then based on these numbers, the equity would be £22,000. If you divide that equally, it's £11,000 each - more than double the £5,000 you were talking about.

Yes, definitely speak to a solicitor about it all.