Selling house/buying out calculations

[Jodiebrighton]

Hi, so in early jan my now ex decided to end things after 11 years. We have 2 kids and are still living in the same house. I'm looking to remortgage to buy him out so I don't have to go through the hassle of moving as we only moved in 3 years ago and I want to give the kids a house they are familiar with as we are looking at 50/50 joint custody. He has a declaration of trust in place for 40k as he put in more than me. We put another 70k down which we made on our last property. I had a rics valuation done for 370k. Below I'm basing my buyout offer on what he would get if we sold. But as he wanted to end the relationship, get out the mortgage offer and sell the family home so we both have to re-home, so can I bass my calculations on him paying the fees for moving as he is forcing this.

370k valuation

• 40k declaration of trust

-200k left on the mortgage Leaves 130k equity 65k each. 40k back to him for trust makes 105k he would make if we sold. But we would pay around 5-6k in estate agent fees, 4.5k redemption fee and 3k in solicitors fees. So let's say 12k. Half of that would be 6k assuming i agree to sell and split the cost of selling. Not sure why I'm splitting the redemption fee as he ended it after just 3 years. So 105k minus 6k is 99k. Should I offer 95k? He asked for 115k but didn't include selling fees as he said I'm not selling, you're buying me out!

Can I include selling fees in my offer as I'm basically trying to match what he would get if we sold but with me buying him out for a similar amount, it's saves the kids having to move out of their family home in to 2 new homes and saves all over us having to look for new places to live/buy at the same time.

It’s usual and fair to take reasonable notional
Costs of selling into consideration for these calculations

Take into account selling fees as neither of you can get your money out without paying those but not early redemption as that won’t apply when you sell.

Thanks. The early redemption fee would apply though as we are 3 years in to a 5 year mortgage.

Why do you need an estate agent?

Also, you can remortgage with the same company without paying the redemption fee sometimes. Are you sure you have to do that?

Both pay your own solicitors costs?

I was reading on other posts how difficult it is to stay in a property after you separate. My partner ended things after 10 years and I understand he wants his money out the property. But there are other issues involved that he is getting away with. Such being I spent 15k last year building and extension while he spent 15k on hair surgery and a tummy tuck with 2 months unpaid leave and he missed mortgage and bill payments 2 out of the 3 months following the surgery. He then decide to get a new job travelling and breaks up the family. He now wants to sell as the place is worth more since the extension was done and he says legally I can't claim the money back I spent on the place which I think is right. It seems I can do anything but agree and sell the family home and we both go and buy new properties and Rhône the kids in both. Feels like he planned the whole breakup

@Turningpurple

Why do you need an estate agent?

Also, you can remortgage with the same company without paying the redemption fee sometimes. Are you sure you have to do that?

Both pay your own solicitors costs?

We tried to sell on on our own last time and on purple bricks but we didn't get any viewings or offers. So after 2 months we went with an estate agent and they cost £4500. I paid 3k on solicitor fees when we moved in here and the rendition fee would've paid as we are both moving to new places and they confirmed the mortgage can't be moved. So that's why I went with those figures. All based on what we paid moving in here except the redemption fee of course.

Hi,

You need to get at least 3 estate agents to do your house valuation (normally it is free even if you say that valuation is to buy out your ex). Just RICS valuation won't give you current market value.

You then get an appointment with your mortgage advisor from your bank where you have your mortgage, and, transfer of equity solicitor.

With solicitors (if amicable) you can negotiate flat fees (budget about 50% on top for their time to answer you email/phone queries).

If you buy him out - there will be no estate agent fees. Mortgage wise, there will not be redemption fee as you are staying on mortgage and removing your ex it will be additional borrowing to an existing mortgage.

In all honesty I think I would sell, because he sounds like he’s being a nightmare splitting hairs about fees etc, giving you no credit for paying for the extension. Get a solicitor, do it by the book and buy something that has nothing to do with him.

@TruckDrivingLady

Hi,

You need to get at least 3 estate agents to do your house valuation (normally it is free even if you say that valuation is to buy out your ex). Just RICS valuation won't give you current market value.

You then get an appointment with your mortgage advisor from your bank where you have your mortgage, and, transfer of equity solicitor.

With solicitors (if amicable) you can negotiate flat fees (budget about 50% on top for their time to answer you email/phone queries).

If you buy him out - there will be no estate agent fees. Mortgage wise, there will not be redemption fee as you are staying on mortgage and removing your ex it will be additional borrowing to an existing mortgage.

Regarding the estate agent fees. Buy not taking them in to account he is getting more money and less hassle from being bought out than if we sold. Why should he make more. I'm offering what he would get if we sold plus the kids keep a home they grew up in.

Also, if I don't include estate agent fees, he makes more money buy not including them and when I do sell, I pay all the fees so effectively I've paid 1 and a half times. He would get 99k roughly if we sold as we would both pay fees. So he wouldn't get 106k. But if I give him 106k and then I sell in 2 years time, I have paid him off more as I didn't account for selling fees and when I do sell, I'll pay all the fees. So I have effectively paid 1 and a half times.

I may as well say to him that you win, sell your kids home, make us all move to a new place even though an acceptable off is in the table.

I should tell him I'll agree to move if he covers the costs and sorts everything out.

I would look at it as whether that's extra £6k is worth it to stay in the house?

To me it probably would be - I didn't take them into account when I did my split - just the equity.

You will need 3 valuations though - the form e asks for that.

I did a rics valuations that came out at 380k and 3 estate agent fees that all came out around the same. One just took zooplas average of 386k in the area.

I'm only thinking of taking in to account selling fees as I'm trying to offer what he would get if we sold. It's just less hassle for me and the kids to find a new place to live and move if he isn't making any more money by selling. Yeah he we could sell for 10k more but it could go for 10k less.

Yes, you should show willing to sell the house. Enthusiastic even. It takes away his assumption that you are desperate to stay. Withdraw the offer and tell him you want to push on with a sale.

Start quoting the costs involved and let his tiny brain do the maths. He will soon revert to one what gives him the most money and let him persuade you of its merits.

Is your mortgage portable, many are, so if selling you’d move that over to new property therefore redemption fees not due….

Did you have the statement of trust put in place when you bought? are you married?

If you're married you may be able to negotiate getting some money from the trust due to what you've outlined and as there are kids involved.

Get a consultation with a good lawyer.

You can't take into account fees which you aren't going to incur. In my experience (I bought my ex out) we got the house valued and then split the equity in half. I paid my solicitor fees and he paid his. I also had to buy him out of the deposit that he put in which was protected. He walked away with £210k in cash (he put in £175k in cash to buy originally) I ended up with a mortgage for £340k plus fees which I paid out of pocket.

If you sell in a few years you will have to pay the selling fees. If he buys somewhere else now he will have to pay fees.

You also need to remember that if you buy somewhere else you may need to pay stamp duty which will wipe out further money which you don't have to do if you stay put.

Your mortgage provider might agree to port your mortgage rather than pay a redemption fee

@Triotriotrio

You can't take into account fees which you aren't going to incur. In my experience (I bought my ex out) we got the house valued and then split the equity in half. I paid my solicitor fees and he paid his. I also had to buy him out of the deposit that he put in which was protected. He walked away with £210k in cash (he put in £175k in cash to buy originally) I ended up with a mortgage for £340k plus fees which I paid out of pocket.

If you sell in a few years you will have to pay the selling fees. If he buys somewhere else now he will have to pay fees.

You also need to remember that if you buy somewhere else you may need to pay stamp duty which will wipe out further money which you don't have to do if you stay put.

Your mortgage provider might agree to port your mortgage rather than pay a redemption fee

Just doesn't seem right that if we sold, he would get 100k as an example. So why could I not offer 100k for him to walk away? I'm not including selling fees in a way. I'm giving him what he would get if we sold. The up side being his kids don't have to move to 2 new homes and they can remain settled in their family home and simply adjust to one new place to live.

Op you can include reasonable and notional selling costs
Ultimately you can agree on the values between you anyway