Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Flip

1 2 3 4 5 6

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:

Amazongirl9 · 01/10/2022 10:50

You might be able to persuade him to take a couple of grand less, because if your brother is buying him out, and you don’t need to sell it through and estate agent that will save some money.

Inanun2 · 01/10/2022 11:52

helleborus · 01/10/2022 08:45

@geranium66
Was the £50,000 Help to Buy contribution actually an equity loan?

If this was the case, it was for 50,000/288,000 = 17.36% of the purchase price. My understanding looking at this link
www.gov.uk/help-to-buy-equity-loan
is that the amount you have to repay is based on the current market value of the house, so you would need to repay £375,000 x 17.36% = £65,100.

If this is the case, I would calculate the amount due to your ex as:
Total equity = £375,000 - £65,100 - £190,000 = £119,900
His half = £119,900 x 50% = £59,950
and then as others have suggested, I would deduct half the legal fees from this.

Please ask your solicitor to help you clarify the amount due under the Help to Buy scheme and make sure you are clear exactly what the financial position would be if you were selling the whole property, then base your payment to your ex on that.

This ^
He is entitled to about £60k (new value - remaining mortgage &HTB redemption figure = equity /2)

The fact you are staying in the house makes no difference you are still splitting so split is 50/50 and you are buying him out, just same as if you sold and moved somewhere else.
But check your figures carefully to ensure they are accurate.

How anyone can agree that he is only entitled to £25K ?.
The lack of financial literacy of posters on here is scary and I hope if any of you are on the receiving end of an ‘offer’ like this you understand how unfair it is and do not accept it for your sake.

Labradooor · 01/10/2022 12:26

The brother bit very much is an issue. Is he getting separate legal advice on his position?

Interested in this thread?

Then you might like threads about this subject:

General money

averageavocado · 01/10/2022 12:30

no -
How much did you pay for the house?
How much is it worth now?

Halve the difference

ie - house was bought for £100k and is now worth £120k
You give him £5k

averageavocado · 01/10/2022 12:31

crap!! not £5k obviously!! £10k

averageavocado · 01/10/2022 12:54

ah - I dont know how the help-to-buy works

ChateauMargaux · 31/01/2023 11:35

You paid £288,000 from £20,000 deposit and £50,000 help to buy. If there is £190,000 left on the mortgage you have paid £28,000 in capital off.. which does not make sense in your numbers.

If the value of the house has increased from £288 to £355 - £67k then he should get half of this from his brother.

His brother should be paying him and then you should have an agreement with his brother that his brother pays 50% of everything including the help to pay buy back.

Viviennemary · 31/01/2023 11:42

You need to pay him half of the increase in the value of the house. Of course he will have made money but so will you if you sell., iIf you can't agree the house will need to be sold. It's half his house. No children involved.

BocolateChiscuits · 31/01/2023 15:48

It sounds like you're saying you paid off about £100k of mortgage in 2 years after paying just £3k each in mortgage payments. Also that your mortgage payments total just £250 a month - interest rates used to be good, but not that good surely.

Hopefully I'm talking rubbish and have completely misunderstood the situation, but just wanted to point out in case you need to recheck anything before going back to the negotiation table.

Flip

1 2 3 4 5 6

Swipe left for the next trending thread