Buying partner out

[FinaleyDee]

Hi, I feel really stupid asking this - maths is not my strong point - but I can’t figure out how to work out how much I will need to pay my ex to buy him out.

We own 40% of a shared ownership property. 100% value of the house when we brought it was £185,000 so our share was £74,000. I can’t remember what our deposit was.

The house has now been valued at £230-240,000. Say £235k for arguments sake.

To buy him out do I pay him £10,000 (i worked this out as 235,000-185,000 = 50k, 40% of which is £20k, divided by 2 = £10,000 each)

I wasn’t sure if I had to factor in the remaining mortgage balance somewhere!

Thank you!!

Hi,

I don't know if it's any more complicated with a shared ownership property but I'd have thought the sum to do was

House worth £235k

Your share of that is worth £94k

Minus off what's still outstanding on the mortgage ie if you still owe £50k you minus that of

Your share of the house is worth £44k ...£22k each so that's what it would cost to buy him out

That's the approach I took when I bought my ex out, although it wasn't a shared ownership property.

Your workings are incorrect.

If the house is now worth (100%) £235k

Your 40% shared ownership of this = £94k.

Of that 40% / £94k - what is the remaining mortgage?

You need to take that amount off the £94K and that is the equity you have.

So, as an example - if you have £50k remaining on the mortgage. Take that off the £94k value - and your equity amount = £44k.

If you agree on a 50% split of equity - in the above example you would have to pay £22k.

You would also need to be in a position to take on the mortgage in full.

Thank you both for your replies!

Hi all. I have split up with my ex who I own a property with and at the time of purchase I paid 60% into the house and he paid 40%.
The house is with £450k and our remaining mortgage is £110k.
Can anyone advise on the way out is worked out so I can buy him out by remortgaging to get him out.
Any advice will be greatly appreciated.

If you own it as joint tenants potentially you will have to pay him 50% of the equity. So that’s 50% of £340k = £170k
If, however, it was purchased as tenants in common in a 60/40 split, you’d pay him 40% of £340k = £136k