Calculation for ex buying me out

[Ipdipdoo]

Sorry I’m sure it’s a simple calculation if the property is jointly owed.
If he was to buy me out how much would I receive?
I have no idea of the property value but would hazard a guess at £550k. Mortgage is £300k.
Property bought for £450k.
There may be a moral sticking point as the deposit of £100k was his from an inheritance.
figures provided have been simplifed.

Legally £125K minus half of any associated costs
Morally £75K

Sorry just seen this, it answers both my questions

@Billydavey

i know you didn't ask me, but, she didn't have kids on her own. But she is being left to house them & raise them on her own. He needs to think of their security. HE can rent, rent a room, move on without the responsibility of the children.

apologies I missed a reply from the op which sets this out.

I still feel looking at h the house in isolation morally his deposit should be returned. I know op is comfortable there are other moral reasons for this not to happen and we don’t need to know what they are. She knows the (B-road) legal position now and can make her decision accordingly.

@SummerSplashing or SHE could think of their security, leave kids with dad and rent a room!

kegally if they are joint tenants it’s straight 50:50 of the equity which includes deposit if not ring fenced.

morally he should get his 100k back which will allow him to provide a house for his kids and op gets what she contributed towards, but legally it’s straightforward

Yes, but the big question that no-one us answering is......can he raise the mortgage to buy you out.

You say mortgage is currently £300k. The equity is £125k. So, assuming he has no other assets that he can use, he will need to raise a mortgage of £425k to "buy you out".

A mortgage of £425k would need an income of around £100k. Maybe more if the lender factors in maintenance payments and any loans or debts he might have.

Does he earn in excess of £100k ? Does he have savings he can use ?

Ignore all of these people suggesting you have a moral obligation to return half the inheritance. You were a family, a joint unit and you both will have made sacrifices to make that work. He put in some inheritance, you birthed kids and presumably took time out after they were born. I’m sure you could both keep lists of your various contributions now and responsibilities for the future.

But the law is clear; you get half the equity (£125k) minus costs. Good luck finding a home for you and your children.

I presume 50% I don't believe legally a house sale has anything to do with children, maintenance etc.

Probably worth considering that if you work part time and aren’t in a position to get a mortgage, the equity will be eaten up in day to day costs. I don’t think there will be any universal credit help/ top up with over 100k in the bank, yet it will disappear quickly. If the plan was for the children to benefit financially in the future from the inheritance your dh got, they probably won’t in this scenario.

quick update. He said he can’t afford the cash to buy me out but may be able to get a higher mortgage. We have agreed to get the house valued and see what it is. If we sold if he can’t increased the mortgage he has agreed to me keeping the full deposit if it enables me to buy shared ownership property.

I agree which is why shared ownership is the option I would pursue.
use all the cash from the sale to purchase a share, mean no mortgage and only rent to pay.

You will probably have to keep most of the money to finance the home for the children. He gets a settlement after youngest dc is 18.
Partly because as full time carer or majority of time carer you will have very low earning power so how will you finance rent or mortgage.
Shared Ownership not always easier.

The inherited deposit needs more explanation I think. Depending on how long the partnership was, and who he inherited from would determine whether I’d want half.

If it was his parents and yours are still alive and you will inherit, it’s unfair to morally take that. Will you be giving him half your inheritance when the time comes?

if it was a grandparent or someone else and he was still going fo inherit from parents I’d be more likely think that is ok because he will get other money down the line.

Also, who’s fault was the relationship breakdown? I don’t think I could end a relationship on no fault or because of cheating on my behalf then take my husbands (only?) inheritance.

Grandparents inheritance.
mine from my mum will be very small. His from his mum will be extremely large.
his fault break up for cheating

I gave up a professional career to care for the children so he could work and build up his business. I also worked for him without pay for 7 yrs.

So he didn’t have to hire someone to do a job I did for free. He also purchased 3 b2 lets in his name while we were together. Legally I’m not entitled to them but that’s fine, morally to have the deposit seems fair.

Having done basic calculations I could afford the rental part. There would be no mortgage costs.
sorry don’t understand the settlement part.

The buy to lets are all part of the financial settlement. They are in the mix as is his pension and yours. I assume you’ve seen a family solicitor about this. All capital and income is in the calculations.

We were not married so they are his assets

Given all that I agree

Without the security of marriage, this was a very foolish thing to do. You chose to give up your career - millions of women manage to work full time and care for their children. I did it for 30+ years! Why you chose to work for him without pay was also a foolish decision. Presumably you also have little or no pension? Your first priority is to get a full time job.

If they are ion his name, they cannot be included. They were not married, so there is no financial settlement.

Sorry - missed that they aren’t married! Why do women do this?

The total equity is only 250K - how would she get 275K?

Sorry see my subsequent message I forgot about the mortgage