What's a fair split of the house equity?

[MaryC123]

What's a fair split of the house equity?

Facts are:-
We live in the south west.
-OH is leaving to make new life in Scotland. (with someone he's met twice through online gaming, but that's beside the point!)
-OH wants house sold and 50% of the equity.
-Not married.
-Kids staying with me.
-Joint mortgage (tenants in common 50/50)
-2 kids. 7&11.
-I intend to stay in the family home, for the children.
-I can get mortgage to cover the outstanding mortgage, but not enough to pay him his 50% of the equity too.
-I have always paid for the kids, food and family stuff.
-OH has always paid for mortgage & utilities. (He never wanted mortgage paid from joint account. It's a control thing!)
-OH has said he will pay the level of maintenance that csa says he should. But his job is on rocky ground and if he loses it, he will not be paying anything.
-OH said he is willing to have the children to stay if 'I' fly them up.

So what is a fair split of the equity? I'm having mixed advice. Some say 50% as that's what we agreed when we took out the mortgage, so that's what the agreed paperwork says.
But other friends are saying he should get less and me more as I am housing the children.
So what do you all think?
Thanks :)

You should get more to make it fair. Get a solicitor!

As part of my divorce we took what we first put in to out first home and then we split the remaining equity about 55% in favour of me. If I'd have taken more he wouldn't have been able to also buy a house, which was important to me.

How long ago did you buy the house / take out the mortgage?
Was it pre- or post-children?
I.e. Was it a relatively recent agreement, or was it agreed under different circumstances?
If it was recent, i guess you could both say you knew what you agreed to.
Less recent, and the agreement doesn't reflect current situation?

I guess I'd also consider how much we're talking about here, and whether agreeing to an uneven split is "worth it" compared to time, effort and cost of not.
You say you could get a mortgage but not enough to cover his 50% - does that mean unless he agrees to less than the 50% you're forced into selling anyway?

You say you are eligible for a mortgage. Does it just cover the outstanding balance or could you raise some of the equity?

You need legal advice

If you're not married, legally you're only entitled to 50%.

Thanks for your replies everyone. To answer your questions....

• House was bought by OH 15yrs ago.

-I moved in immediately and paid 50% of the mortgage (no bills). -10yrs ago 1st child was born and I stopped paying my 50% of the mortgage (I paid childcare costs) -5yrs ago I came in on the mortgage as we needed 3rd bedroom built for 2nd child that was born. -House valued at £200. -£130 outstanding on thr mortgage. -I can raise a maximum mortgage of £130.

If we sell, what % should each of us get if it went to court? And would this % be the same if we sold when our youngest turns 18?

Thanks

With an application under Schedule 1 of the Children Act, you might be able to get more now. If you wait until the youngest is 16/18 it will definitely be 50/50. The added risk is that you do not know what it will be worth at that time.

I think if you stayed in the house until your kids were 18, you'll get 50%, unfortunately you don't seem to be in a situation to pay him out.

Do you know what the equity is currently in the house?

Un married 50:50 split

Unless I just have a really bad solicitor

Apologies, if the house is currently valued at £200k there equity of £70k less selling costs.

Would £30k be enough for a deposit plus the £130k mortgage you can get to house your family in your current location? If not then ask for what you need, the children need a home.

I think that not being married changes the legalities, but my DH gave his exW 65% of the equity in there house so that she could afford a 3 bed house.

Thanks again for your views.

One more question....
If he doesnt pay into the mortgage for the next ten years, does he still get 50% in ten years or 17.5% which is what 50% of the equity equates today as a % of the value of the house.

My mortgage offer would be so borderline that I could easily put down an extra £10pw petrol and not get enough. I'm struggling to see where the incentive is to get him off the mortgage, if he is going to take 50% in ten years regardless. He will absolutely NOT be contributing to the mortgage payments for the next ten years, which I don't have a problem with. But it seems unfair if he still gets 50%.

I think you need to get legal advice and take that to mediation.

50:50 is a fair split. Will he be paying child maintenance and if so can that sum be used to increase your borrowing power?

He could agree to defer his share of the equity in order that his children don't need to be uprooted but he needs to live somewhere too (and to have a place for his children to visit) and he might need his share for a deposit.
Can you take your fair share (50%) and move to a cheaper house with an affordable mortgage?

MaryC did you speak to your current lender regarding a mortgage? Try a broker, you may well find you can borrow more with another lender.

Yes I've been to our lender and an IFA. Both are very borderline. It's only when really manipulating the figures it takes me to a figure that covers the current outstanding amount. But I can't raise enough to give him his equity. If we sell there would not be enough to buy a three bed house in this area. So I fail to see where the incentive is for me to bend over backwards for him, get him off the mortgage, if he will still get 50% in ten years.

The equity is £70k so that £35k is his, but ideally he should agree not to take that money until the youngest child is 18. If he's no longer paying into the mortgage then that would indeed be 17.5% of whatever you sell the house for then, so he needs to agree that his share could go down as well as up.

Alternately - what could you buy in your part of the country for say £175k? Anything remotely acceptable?

If yes, I'd give him a choice between either having his 17.5% when youngest turns 18, or £25k (ish) in full settlement as you could then get a slightly smaller place and be free of him.

He doesn't get to walk away from his family scot free, he has responsibilities. Giving him £35k now would be effectively allowing him to wash his hands of that.

And he can sod right off with his magnanimous offer to have the children occasionally if you pay for their travel. He's the one choosing to move hundreds of miles away. If he wants to keep seeing them then he pays the costs.

Apologies, when I read the thread earlier I missed the bits about him not paying maintenance if he loses his job and about him expecting you to fly the children up to him.

Any man worthy of being called a man would do his best to secure employment and support his children if they lose their job and any dad worthy of being called a dad would not move so far away and expect the mother to transport the children to him.

In your situation I would do all that I can to give him his 50% share of the equity so that he cannot make out like he has done me any favours. Especially as the house was originally purchased by him alone I wouldn't want any part of it as he sounds like a controlling knob.
Could you afford to buy a 2 bed 2 reception house and convert a reception room into your bedroom for your new budget (after giving him 50% of the equity)?
I think you would be best finding a way to move into a house of your own so that he has nothing to throw back in your face as though he has helped you.

There is no substitute for legal advice, you can't rely on advice from friends and family or an internet forum.

As you weren't married ownership of the former matrimonial home is determined by property law rather than divorce/family law. Unless the deeds state otherwise it will be assumed as joint owners you share any equity equally 50:50. In England and Wales cohabitants can't make financial claims against each other. It's different in Scotland.

In some circumstances it may be possible to claim under Schedule 1, Children Act 1989 for capital to be made available by a parent to house children and their main carer during the children's dependency. Whether such a claim is likely to be successful depends on the paying parent's resources once they have housed themselves and paid their own living expenses. If capital is made available it is in trust for the child and reverts back to the original owner once the child reaches maturity.

You need to bear in mind costs which aren't insignificant in these cases. It isn't that difficult to run up a bill of £35k and sometimes it is better just to cut your losses.

Stay in house take over mortgage in your name. Agree via solicitor he will get his share of equity when youngest finishes full time education. Make it after uni rather than school.

If you go to court it will be under Tolata and schedule 1 combined application. Unless you want to move it will save you costs if you stay and take over mortgage and have an agreement on the equity pay back for later.

Yes he should still get his percentage later.

If mortgage stays joint and you stay in it you will cover all mortgage as effectively you will be renting his share off him. So he would still get his share yes eventually.

Could you say offer him 30k use the lower amount and say that frees him of the mortgage!!

So if you remortgage for a fixed lower rate, might be worth looking at money supermarket at mortgage rates.
Get him off that mortgage, otherwise in the future if you meet somebody and they move in/you buy something else he may become difficult with you.

Hi everyone, thank you so much for all your comments, it means a lot to me that you've all taken the time to reply.
I told OH tonight that I can get a big enough mortgage to get the mortgage transfered over to me but not enough to give him his equity too. Now I would have expected him to be pleased as he's getting exactly what he asked for. Well almost, as he had previously said he'd be happy to leave the equity in the house. But no!! It appears he never expected me to be able to raise a mortgage and he seems really pissed off about it!!
I've explained to him that the lender wants to see 6mths of maintence payments going into my account before making the application. So I suggested that he starts making payments this month and I transfer the money straight out again to a joint account for it to be used to pay 50% towards the mortgage, but no he doesn't want that. He'd rather I take on the utility bills. Again, its a control thing.
I just don't understand him...he wants out, I'm giving him a way out and he's still not happy. I'm very calm, not bitter or emotiinal and try to be upbeat with him, which I think actually quite pisses him off!
I also suggested this evening that we tell the children together next tuesday (he's at home and the kids are off school). But he tells me that he's already sort of mentioned it to our eldest!! (I'm furious!!) He doesn't want to tell them properly and wants me to! I've said that it's a conversation that we BOTH need to have with them at the SAME time. As the kids will have questions for him that I won't be able to answer.
He is a cowardly, pathetic, manipulative, violent and aggressive man.

God i feel for you, these is a horrendous stage to go through. Yes you need to tell them together, what a total arse he is, leaving it to you.

ok so what you want to do is force him to sell his share of house to you effectively while offering for him to maintain a share in trust or however it is worded. or you could say you want the house sold - and it will be sold /transferred to you.

you might have to go to court under TOLATA/children's act schedule one and get a clear court order.

if he is violent and aggressive you cant mess about with agreements etc- you need things ironed out legally with no get out - try mediation on the house front and solicitor and get an agreement explicitly in writing; otherwise you will need a court order.