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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

Flip

Original poster

Being bought out of property

13 replies

Blueeyes91 · 18/05/2023 18:07

Hi all,

I'm looking for some advice from anyone that has done this, is going through it or just knows.

Backstory:
In 2016 I bought a property with my then partner.
In October 2021 I moved out of the family home with my daughter and started renting. This was because my ex refused to leave. Originally we had talked about me staying and paying the mortgage solo until the home sold so he could still afford to rent. Instead he decided to stay and come and go as and when he pleased so i had to leave.
Since October 2021 he's been paying the mortgage and I've been renting with our daughter.

Now:
After a fall through in flat sale my ex has decided he'd like to buy me out instead of selling.

I would like to add that up to here I'm all good on the arrangements.

He has sent me an email today regarding buying me out.

The info he provided:
Remaining mortgage amount at the time I moved out (160k)
The value of the property (210k back in 2021)
The amount we'd "sell" for (217k this was the offer we'd accepted when we were desperate to sell in 2022)

I understand that as of October 2021 I've not been paying into the mortgage so I could rent. So of course there's about 20 months of equity that is his.

However I of course want to make sure that I am getting a fair and reasonable buy out, especially as I will want to invest that money into my own property so I don't have to keep renting.

I would like to try and settle this between us instead of spending lots of money on solicitors (at least for now). But I'm not sure where to start. It was a financially controlling relationship of 10 years and I'm struggling with that part of me that just always agreed.

I would appreciate any advice anyone is able to share with me.

OP posts:

Fireyflies · 18/05/2023 18:22

What's the outstanding mortgage now? I'm guessing around £157k? (Assuming it's gone down a little in last 2 years) If so, there's £60k equity in the property (assuming it's not changed much in the last year, which is likely) so I'd suggest he pays you £30k and you take your name off the deeds and the mortgage. I don't think the money he's paid towards the mortgage in the last year should be deducted because you've been paying rent (presumably a similar-ish amount?) over this period. Or to look at it another way, he was paying your share of the mortgage in return for not paying you anything in rent for having use of 100% of the house, while you weren't getting any use from it.

If he offers something a little less, I'd probably accept that, because if he wasn't buying you out and you were selling there would be extra costs involved to estate agents, etc.

Marmight · 18/05/2023 21:20

Who will pay the legals to take you off the mortgage and deeds?
£30k equity sounds about right.

Original poster

Blueeyes91 · 18/05/2023 22:03

As of December there was about £145k left on the mortgage.

For legal fees, we've agreed to split those 50/50.

OP posts:

Fireyflies · 19/05/2023 08:33

Well that gives £72k equity, assuming you both accept that the 2022 valuation is still about right. So yours is £36k minus your share of the legal fees.

LemonTT · 19/05/2023 09:43

what is relevant here is not when you moved out. It is the ownership of the property. I am going to assume 50:50. This means you are legally entitled to 50% of equity.

In relation to him taking responsibility for the mortgage payment, there should have been an agreement in place when you moved out. But in the absence of one the argument that will prevail is that he occupied the whole property including your half. That benefit needs to be recognised.

The most basic rent for that would be to pay you 50% of the mortgage and property costs for him to benefit from your half of the property.

It is ridiculous for people to think they can occupy a whole property, at the expense of another, and only pay half the costs.

Original poster

Blueeyes91 · 15/06/2023 14:36

So since posting this my ex has now decided he wants to just sell the property. Also fine by me (I wanted it sold 2 years ago). Although by sell I mean he wants to put it up for auction.

The agreement is still that we'll split the legal fees. But as he has been paying the mortgage solo since October 2021 he is adamant that the property will not be split 50/50.

I do understand his perspective. He has been paying it. But I've had to rent with our daughter where the rent was far more expensive than a mortgage repayment and I would never have been renting with our daughter if he had moved out. I was willing to pay the mortgage so he could rent and still split 50/50 once the flat sold.

The way he speaks to me about this just makes me want to walk away and be done with it.

OP posts:

TitsonaFishRidingaBicycle · 15/06/2023 15:10

Assuming the house 50/50 he won't have a choice, you own half the house regardless of who has paid the mortgage. As you were not married, you are both entitled to half the profits minus fees.

Starlingnest · 15/06/2023 17:07

As above, he owes you rent on your half of the house for the period he was sole occupier. This can be equal to your half of the mortgage payments, effectively cancelling it out.

When you sell, you will presumably be using a soliciter? So make sure the money goes to them, and then they send you each your share directly, that way there is no chance of one party refusing to send over what is owed.

Whataretheodds · 15/06/2023 17:15

I agree with PP that you were entitled to rent from him for the period he occupied your half of the house.

He's paid his half of the mortgage and the other half in lieu of rent to you. You're still at 50:50 equity.

If you're going to sell I suggest you get at least 3 estate agents to provide a market appraisal to you BOTH so you can get an idea of sale price.

Whataretheodds · 15/06/2023 17:15

Has he been paying any child maintenance?

Tracker1234 · 15/06/2023 17:19

Why he would want to use a auction? Why not try a Estate Agent at least to see what the interest is? Auction will be quicker but you both wont get potentially what you will if you put on the open market

millymollymoomoo · 15/06/2023 18:57

It doesn’t matter who has paid. If you own ad joint tenants you’re entitled to 50:50. End of

if you go t shrew sake by auction don’t agree
or at least set a min price and if it doesn’t reach that you are not forced to sell at low price

Fireyflies · 16/06/2023 08:33

You really don't want to sell a house at auction. You'll get a lot less than you might via a regular sale because only cash buyers can participate in auctions. I'd focus on getting him to recognise that you'll both get more of you still via an estate agent. You don't need to do anything about the 50-50 split argument, apart from say no when he asks you to reimburse him his mortgage payments - the house is half yours and the solicitor handling the sale will simply hand you half the proceeds.

Flip