If I want to buy dp out of house - what do I do step by step?

[robusta]

We're not married and have 1 small daughter. The house is in both our names. It's worth 230ish. There is 25,000 left to pay of the mortgage. Do I therefore need to find half of the value minus what's left to pay and give it to him? What's the formula? I know it should be obvious to me but brain not functioning this late. Also, would I be able to pay him by remortgaging the house so I can release cash for him? Thanks for reading

You need to get a mortgage for half the value of the house - £12500 if you want a 50:50 split so 230-12.5/2 =108 give of take and pay it to him

I think. I'm tired though and brain hurts

That's right on both counts. If you can't afford to raise all of it check out the numerous threads on Schedule 1 of the Children Act.

Have you actually tried discussing this with him? It may well be that he will be willing to take less than his half share in order to get a lump sum now. If you weren't willing to buy him out or sell so he could get his money, he would have to issue expensive court proceedings which could take some time so he might be willing to accept a lesser share for cash now.

My BIL was in a similar position. £190K house and 24K outstanding. He paid £5000 in solicitors fees/courts etc to force the sale of the house on the basis that both of them (inc his 15 yo daughter) could be housed on the outstanding equity (with extra borrowing etc). The formula was 190-24= 166 /2 = 83K each.

However in the end he accepted half that amount so his ex had to remortgage for the outstanding mortgage (24K) plus the amount he accepted (40K) = 64K.

Would your STBX accept a deal along those lines and could you remortgage on your own approx 100-120K?

You need to see a solicitor to talk through your options as your daughters housing needs may be taken into account. Only a family law solicitor can advise you properly. There used to be a good website called Resolution but now all I can find is a no win no fee whiplash outfit

www.resolution.org.uk

Sneezecakesmum, does your BIL not mind you posting the details of his financial settlement, given that you're reasonably identifiable from your profile?

I've noticed that over the last year or so you've posted a hell of a lot of confidential information about his divorce on Mumsnet!

No he's not bothered, he's just happy for the help and advice you've all given. Will look again at my profile in case I am identifiable as the bag lady begging in Kings Cross Station!

Thank goodness Resolution is still there, I might be needing it myself soon if DH doesnt stop dressing up as a woman (joke..honest)

All of the advice above is on the basis that you own the house 50/50. Owning "jointly", i.e. both being named on the title deeds is not conclusive proof of 50/50 ownership.

Of course you may wish to split it 50/50 whether or not that is what he's entitled to but if not:

• what have you both contributed in terms of capital investment, mortgage payments, and improvement works?

• do you own it as tenants in common and if so, does the title register say anything about the proportions in which you own it?

There are numerous cases on unmarried couples and what shares they are entitled to in the absence of conclusive proof of agreement as to shares, and it is by no means correct to say that just because the title register is silent as to shares, that means 50/50. Likewise it is possible for a property to be legally owned by only one half of a couple but for the other party to have a beneficial interest in it.

I wouldn't agree to a 50/50 split unless that is what you want, before first considering what you are entitled to at law.

... and also at equity (for the lawyers)

Fucxxx you are wrong in your calculations!

The op is looking to buy the house by remortgaging herself therefore she does not have to pay estate agent fees etc etc. we know because we are going through this at the moment. Conveyancing fees, searches, below 1K so far (though not finished yet) certainly nowhere near 4-5K. OP should check with the mortgage provider about what her likely costs are to make an informed decision.

I am speaking from actual current experience with the figures advised by a solicitor.

Either way OP needs to consult a solicitor as her DDs residence obviously makes a difference.

I suppose an estate agent would have to value the house but we were not charged. What was useful to the ex buying my BIL out was to opt for a price at the top end of the price range as this got a more favourable rate as the loan to value amount was better, but a mortgage advisor would probably suggest that anyway.