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DH buying a share of my house

(12 Posts)
CandyCrush77 Sun 20-Mar-16 16:41:50

DH and I got married 18 months ago. He moved into my house with his DCs, 12 and 10, a year ago but is only just selling his flat. He will make 50k from the sale of his flat that he wants to invest in my house. I own the house in my sole name. The house is worth 1.5 million and the outstanding mortgage is £470,000. However, there is a fixed charge of 105k in favour of my ex father in law and a 7.7% floating charge in favour of my ex DH. DH and I have a pre-nup which basically says no sharing of assets and that he doesn't get an interest in my house unless he makes a capital contribution of at least 50k. So, the intention is that he will pay 50k to me (which I will use to reduce the change to my ex FIL) and get an equivalent interest in the house (approx 3.3%) and that he will start paying a 1/3 towards the monthly mortgage payment. So, the current monthly payment is £2,100 so he will pay around £700 each month. Question is, how would we quantify his interest? At the end of the mortgage term, if he has paid of 1/3rd of 470k, I guess his interest is worth 156k or the equitable equivalent at that time. What happens though if we break up after 5 years or 10 years? He would get his 3.3% share but what about his monthly mortgages payment? What would he get for those? I want to make sure he isn't paying 'dead money" but at the same time he has paid nothing towards my house as of yet and I want to safeguard my share for my children.

PotteringAlong Sun 20-Mar-16 16:51:58

Honestly? I wouldn't. I'd keep the 2 investments separate and have him invest in a buy to let in his sole name.

CandyCrush77 Sun 20-Mar-16 16:54:39

Thanks Pottering. I agree. I am only doing this as I need to money because my ex FIL is pressing for the return of his 105k plus I really need to get DH to contribute to the mortgage and other outgoings as paying it all on just my salary leaves me with very little money to live on each month so I keep getting in debt. I know what you mean though. My gut instinct is to keep everything separate. I've already had a messy divorce and can't face the thought of things going tits up again and having to find 100k to pay someone else off.

cozietoesie Sun 20-Mar-16 17:01:18

Have you asked your DH to contribute to the monthly outgoings?

CandyCrush77 Sun 20-Mar-16 17:06:16

Yes but he has not been able to until he sells his flat, which he is doing now.

Eustace2016 Sun 20-Mar-16 20:47:30

First of all if a lawyer drewn up you pre nup (which I think is compulsory if you want any chance in England of it being enforceable) you both should use separate solicitors to vary it.

Secondly, I wouldn't let your husband anywhere near the ownership of the house (and by the way if the title goes into his name as it has a mortgage on it there will be a whacking treat stamp duty charge he will have to pay which I expect he could not afford so a very good excuse to keep him off it.
Why shoudl he and his children live in your house without paying either rent or towards other costs? I don't see why he gets to live in a £1.5m house without paying anything? Could he pay £50k to the father in law and that be counted by you as say his rent for the next 10 years?

Mumoftwoyoungkids Sun 20-Mar-16 21:23:23

The maths is fairly simple - he gets £156k / £1.5m less one third of the mortgage.

But as everyone else said - are you sure this is a good idea.....

Thelwell Sun 20-Mar-16 21:29:04

Will your mortgage provider even allow him to go on the deeds of the house?

Whitney168 Mon 21-Mar-16 11:25:13

Personally I'd sell the house, get the ex-FIL and ex-H completely out of my life and start again with a house either in your sole name or with your new husband signed up to an agreed percentage ... but I don't like complicated!

CandyCrush77 Tue 22-Mar-16 13:25:01

Thanks all. I really really don't want to sell the house. It's a lovely house, close to my DSs school and I've fought tooth and nail to stay there. It would also cost a fortune in stamp duty and other costs to move. I also think it would be hugely disruptive for my DSs.

Yes, a lawyer did draft the pre-nup and we both took advice. It states that if he does invest in the house then he gets a proportionate share (I think 50k is 3%) and that his mortgages payments will count but unclear how much. We probably do need to clarify this in writing. With this arrangement, he will not be a legal owner but will have a beneficial interest. Just makes me very nervous as he could dispute the pre-nup and try to claim more so I want to be really clear about what he would be entitled to if we break up in say 5 or 10 years. It would of course be easier for him to get a buy-to-let but the problem is that he doesn't earn enough to buy anywhere in London (salary of 42k plus 50k deposit will get you diddly squat unless you look at home ownership schemes which generally don't allow you to rent) and I really need i) to pay off my FIL and ii) can't borrow any more with any lenders at the moment as am already at 4 x my salary plus have substantial debts. I could look at getting a secured loan to pay off the FIL but it seems risky.

Eustace2016 Tue 22-Mar-16 15:39:36

Is there a legal time limit to paying back the father in law?

Also did your ex own the flat he is selling with an ex wife and if so have they got a clean break final sealed court consent order on their divorce?

Lunar1 Tue 22-Mar-16 18:01:29

I remember your old threads. Do you want to do this or are you being backed into a corner by your exfil?

If it's not your first choice I'd look at all your legal options and do a bit of a pro's and con's list before you make any big decisions.

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