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Original poster

Dividing house, is this fair or not?

134 replies

geranium66 · 01/10/2022 07:08

Bought a house 2 years ago with partner. We’ve separated. The house has increased in value by 30%. My brother is taking over his side of the mortgage for the future; I will stay in the house. I plan to give my ex partner back all the monthly mortgage payments he has paid, plus his deposit and increase it all by 30%. Would you consider this fair or is there a better way of working it out?

OP posts:
Littlegoth · 01/10/2022 07:11

No, surely he just gets half the equity

Hearthnhome · 01/10/2022 07:12

I am confused.

He would be entitled to his deposit and half the equity.

Not really sure why you would be giving him payments back on top.

ApolloandDaphne · 01/10/2022 07:13

Why would you give him the mortgage repayments he has already made? He lived in the house for those two years so that was his contribution. I would give him his deposit plus and additional sum to cover the increase in value of the house. My DD has split with her partner and that is what they have agreed on.

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Everydaywheniwakeup · 01/10/2022 07:13

That sounds odd. Is your brother buying him out or is your ex remaining part owner while you give him a random amount of money??

User0610134057 · 01/10/2022 07:13

Is your brother not just buying him out of his share? Is ownership legally transferring?

Littlegoth · 01/10/2022 07:13

Unless you paid unequal deposits in which case account for that so that it is split in the following way

out of the equity:

you each take back your deposit and the remainder of the equity is split 50/50.

User0610134057 · 01/10/2022 07:14

Or will your stbxp still own a share of the house and get some proceeds when it sells in future?

KingJulien · 01/10/2022 07:14

Did you both put down an equal deposit? Have you both contributed the same amount to the mortgage since purchasing? If so, you pay him out half the equity and your brother takes over his half of the remaining mortgage.

KingJulien · 01/10/2022 07:16

Sorry, not YOU pay him half the equity. That would be your brother when he buys half the house.

Stag82 · 01/10/2022 07:17

Your brother needs to buy your ex out. This will be half the equity from the house. If he paid a large deposit you can take that into account if you want;

SuperCamp · 01/10/2022 07:22

Why would you pay him what he paid in mortgage?

Most is the interest in the loan which is the cost of living in the house instead of paying rent.

If your brother is buying him out it should just be for his share of the the equity: the current value of the house, minus the mortgage, divided by half.

DebussytoaDiscoBeat · 01/10/2022 07:23

He wouldn’t be owed half the equity from the house because he could have put down more or less deposit than the OP so he needs to get back whatever he contributed to the deposit. He’d also be owed half of any increase in equity since they bought.

notdaddycool · 01/10/2022 07:28

Are there kids involved, are they 50:50 or mainly with you? Did you both put equal amounts in for the deposit? Are you both paying half the repayments? I could also ask if you work earn less is that due to childcare. I think all these have an input on what’s fair. But some of his repayments do far are interest that has given him accommodation since you bought it and I’m not convinced that needs repaying.

Original poster
geranium66 · 01/10/2022 07:30

Thanks for the replies. Initially both myself and ex- partner put in an equal deposit and all contributions were equal. There is a help to buy scheme involved too, which I am paying off. For ease of explanation, the only monies that ex partner would receive from this would be the total amount that he put into the house with a 30% increase on this to reflect the increase in value of the house.
In effect he has made a 30% gain on all the money he has put into the house.
if others have done another method that you consider better please could you explain it very very simply- I’m frazzled at the moment.

OP posts:
SweetSakura · 01/10/2022 07:34

Did you pay in equal amounts of deposit? An equal amounts of monthly mortgage payments?

The default would be that if you have each paid half you each get 50% of the equity.
If you paid in uneven contributions that should have been reflected in a deed of trust and you need to have a look at what that said about if you split.

I think you need legal advice rather than trying to make this up on your own. You will need a lawyer to transfer the share from your ex to your brother anyway?

hellcatspangle · 01/10/2022 07:37

You shouldn't be paying back all the mortgage payments, as you're giving him the 30% rise in value. You also paid half the mortgage for the two years - if you sold the house on the open market he would only get half the equity, not half the equity plus all his mortgage payments back!

Haus1234 · 01/10/2022 07:38

geranium66 · 01/10/2022 07:30

Thanks for the replies. Initially both myself and ex- partner put in an equal deposit and all contributions were equal. There is a help to buy scheme involved too, which I am paying off. For ease of explanation, the only monies that ex partner would receive from this would be the total amount that he put into the house with a 30% increase on this to reflect the increase in value of the house.
In effect he has made a 30% gain on all the money he has put into the house.
if others have done another method that you consider better please could you explain it very very simply- I’m frazzled at the moment.

This is an overpayment to your ex - he shouldn’t get the interest paid on the mortgage back (let alone + 30%). He should get his deposit + amounts paid into mortgage to pay off the capital + 30% on those payments. This is the same as half the equity if you’ve both paid in equally which sounds like what you’re saying - so (value of house less outstanding mortgage) / 2.

hellcatspangle · 01/10/2022 07:39

And, as others have said, it's your brother who needs to pay him this as he's buying his share, not you.

Original poster
geranium66 · 01/10/2022 07:41

Oh yes there’s solicitors involved, but we have been told to agree on a figure. There seems to be no formula here. Tried everywhere.
If you take the new valuation of the house, subtract the remaining mortgage and divide in half it’s a vast amount of money. If you look at this figure and compare it to the amount actually spent by my ex. He will have made a considerable amount of money from this if that is the case.

OP posts:
ivykaty44 · 01/10/2022 07:46

If the house was 200k and you both put in £10k deposit

and is now worth 230k then pay him

his £10k back + £15k

so a total of £25k

if you were to start paying him his half of the mortgage payments back, then surely he’d he’d not be entitled to the profit from his investment- as he not have made an invest as he’d got that money back 🤷‍♀️It’s not like going to the bookies where you get your stake back if your horse wins the race

Hearthnhome · 01/10/2022 07:48

geranium66 · 01/10/2022 07:41

Oh yes there’s solicitors involved, but we have been told to agree on a figure. There seems to be no formula here. Tried everywhere.
If you take the new valuation of the house, subtract the remaining mortgage and divide in half it’s a vast amount of money. If you look at this figure and compare it to the amount actually spent by my ex. He will have made a considerable amount of money from this if that is the case.

Did you own it 50:50?

If so he is entitled to 50% of the value when minus the mortgage amount.

if the house is worth 200k with a 100k mortgage he gets half 50k

FirstnameSuesecondnamePerb · 01/10/2022 07:48

Honestly, disregard the mortgage payments. He would have had to pay to live elsewhere. You put in equally, he is entitled to half the equity as per the deeds.
No more discussion to be had!

ivykaty44 · 01/10/2022 07:49

He will have made a considerable amount of money from this if that is the case.

but you will have made the same

FirstnameSuesecondnamePerb · 01/10/2022 07:50

And yes, he will have made money but so have you.
Why not just sell and start again?

sparklecement · 01/10/2022 07:50

FirstnameSuesecondnamePerb · 01/10/2022 07:48

Honestly, disregard the mortgage payments. He would have had to pay to live elsewhere. You put in equally, he is entitled to half the equity as per the deeds.
No more discussion to be had!

This.

do not pay back mortgage payments.