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Original poster

Any solicitors with advice on splitting house equity?

15 replies

PurpleArmy · 28/09/2018 10:43

We bought our house 11 years ago and I paid for everything, the deposit, doing it up, everything. I had a good job and had saved a lot. DP had nothing.
FastForward and here we are 2 kids later. I was made redundant and that money also went toward the house whilst I was also looking after the kids . I later became a childminder. DP was self employed but unbeknown to me, getting into debt as he doesn't seem to know £2+£2 doesn't equal £10 which has just been revealed to me as 40k. Its either bankruptcy which HMRC are pressing for and us maybe losing the house or we pay it off by remortgaging.

I'm bloody furious about it all. I scrimp and save as it is and now we have more mortgage we can't really afford.
I want to the fact that I have paid all the money into the house reflected in the ownership so that if we broke up when I get the strength to do it I get back what I put in.
I phoned CAB and they told me to see a solicitor, which is £250 per hour. I don't have that kind of money but can try and save and coble it together. I can get the first half hour free. So to lessen the cost, I'm trying to work out what I can by myself.
So I put £50k into the house which cost £260k. DP's debt is 40k. What is a fair split?
DP will agree to it as he knows he had messed up. I want to present a plan.
I think need to get a form completed for the land registry.
Any advice please

OP posts:

Original poster

PurpleArmy · 28/09/2018 13:08

Anybody? 🙏

OP posts:

AllyMcBeagle · 28/09/2018 16:12

Not my area of law so I will probably be of limited help but just to clarify are you down as joint tenants or tenants in common?

Also you may want to post this in Legal Matters and/or see if you can get some free advice with someone who can look at this in more detail with you (www.lawworks.org.uk/legal-advice-individuals/find-legal-advice-clinic-near-you)

Fuzzywig · 28/09/2018 16:18

Are you married?

Is the debt just in his name?

I split from ex and have to pay any debt solely in my name and so does he.

paperbattles · 28/09/2018 16:24

can you confirm if you are married or not? It seems not. You need to find out in whose name the house is held? I guess both your names? and how it is held, either as joint tenants or tenants in common ? if tenants in common then in what proportion? Look at your solicitor's documents from when you bought the house, or search for £2 on the Land Registry. Also check how the mortgage is held and any other details. I think you could get a deed of trust for the house indicating the % ownership but this needs to be ok with the mortgage company. If he has potential bankruptcy pressing then he may not be able to transfer assets until the debt is settled. Not my legal area but hopefully indicates what you need to check, you need proper legal advice.

Original poster

PurpleArmy · 29/09/2018 19:52

Hi All, not married, own the house equally. There is no bankruptcy if we arrange this remortgage, just the debts. Joint tenants, I think.

The debt is his but he has no way of paying it back, tacking it onto the mortgage is the only way to avoid bankruptcy.

Thank you very much for that link @AllyMcBeagle.

OP posts:

FishesThatFly · 29/09/2018 20:10

Sounds awful OP. Am so sorry. I don't have any advise except to do exactly what you are doing and financially protect yourself from him. Unfortunately he is going to drag you down.

sunsandandwaterslides · 29/09/2018 22:11

Why don't you sell, take your 50k back plus 50 % of any equity increase and he can take his equity increase and pay down the debt and then deal with the rest himself. It is his debt not yours. I would not be adding his 40k to the mortgage

sunsandandwaterslides · 29/09/2018 22:14

And then of course ditch him and buy your own place

Shylo · 29/09/2018 22:21

Hmmmm, tough one ..... I know you put lump sums in but how have you been paying the mortgage payments? All you? Half each? ...... and how will the new mortgage payments be made? Can your DP cover the mortgage increase because of his £40k or will you need to help?

AllyMcBeagle · 30/09/2018 01:22

You might this website helpful OP:
www.cripps.co.uk/commercial-disputes/protecting-jointly-owned-home-trustee-bankruptcy/

Fuzzywig · 30/09/2018 07:40

He needs to get debt advice pronto. He needs to speak to or get a debt advisor to speak to his creditors and sort out an agreement. I wouldn’t be happy being landed with his debt. Can he/will he sign the house over to you in the interest of keeping a roof over yours and the children’s heads then he can declare bankruptcy - just him as it’s not your debt.

Are you planning to split up and sell. If not I am 100% sure he will do this again. My ex has left me in a shit load of debt and laughs because he’s walked away and doesn’t have to pay a penny towards it. Your partner has the debt solely in his name I think it would be a massive mistake to add it to your mortgage making the debt yours if he leaves.

3luckystars · 30/09/2018 07:45

There is NO WAY you should remortgage to pay off his debt, if you do this, you delete everything you have put in to the house. It’s ALL gone.

He will do the exact same thing again in a year or two and you will be in deeper shit.

Sell the house. Keep it all. The debts are his.

Windgate · 30/09/2018 08:39

Do NOT take on his debts. You both need legal advice.

3luckystars · 01/10/2018 12:43

Is there a way you could get free advice, do you have a citizens advice bureau or free legal advice?

I have been thinking about your post and think it would be a HUGE MISTAKE TO PUT HIS DEBT ON THE MORTGAGE. Please do anything but this. He is going to do the same thing again because he is the root problem.

sprinklesandsauce · 01/10/2018 16:22

OP, I can see why you want to help him, but please don't remortage. Yes, you could lose the house if he goes bankrupt but is there no way around that? HMRC of course are pushing for it, because they get their money first before other creditors.

Have you talked to a charity like Stepchange to see if they can help to arrange a repayment plan etc? They can talk to your creditors and agree an amount to be repaid each month based on his income and expenditure.

If you put £50K into a house costing £260K, then that is a percentage of 19.23% to give you almost £50K. If your DP is feeling generous you could call it 20% to round it up for simplicity, which would equate to £52K.

Then basically, you own 20% of the equity before the rest is split 50/50. which would be another 40% each. So you should own the house 60%/40% in your favour and the equity should be split that way.

But I reiterate that it is really not a good idea to remortgage to avoid bankruptcy. i know someone who remortgaged their house to stop family member going bankrupt, a few years later they had run up the same amount again, went bankrupt anyway, and were stuck stuck with the mortgage in their 60's/70's and officially the bankrupt person was not allowed to repay the loan, the amount they owed had to be written off in the bankruptcy.

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