Question about buying ex out of his half of the family home

[InnerBlonde]

When my XP and I have settled our finances, I would like to buy his share in our home so that DS and I can continue to live in this spot.

Does this involve me simply taking on his share of the mortgage, or - so that he stands to gain from any increase in value in the property since we bought it together - do I have to pay him half of its current value?

I realise I could be being a bit thick here, but I can't seem to get my head around it.

BTW, I have also made some informal enquiries about development potential of the plot, with favourable responses. Because the property is still simply a house with no planning permission, presumably there is no hike in value related to this?

Thanks for answering.

half current value which is good news as it's falling by the day - I would actually get valuations from estate agents and asking them what you would have to price it at to actually sell it in this market.

There will be a hike in value if he also knows about the development opportunity and you will have to accomodate that.

Get a nice LOW valuation done then offer to pay your ex about 20% of the equity. Seems it be going rate in court round here!

But Laurie, it is simply development potential - entirely subject to gaining planning permission. I simply made an enquiry at the planning office and with some builders, and they responded favourably; the potential is there now as much as it was when we bought it, and it wasn't factored into the price we paid. So, when I get an estate agent to value it, would it be dishonest to not mention this potential to them, and if they don't spot it (it isn't altogether obvious, TBH), go with the vaule of the property as it is?

We have spent about £30,000 on the place together. How does this get factored into buying XP out?

And Leslaki, please can you explain your post a bit more? If I pay XP 20% of the equity, that's not buying him out, is it?

I'm not thick - honest! - but just don't "do" this kind of thing, IYSWIM.

Thanks for posts - helpful.

Is it amicable between you? because financially for him he's going to want as much equity as possible and that may include paying the money to put the planning in place and then selling it.

If it's amicable and he's happy to take a smaller share then good. If not amicable then you might have to have mediation or eventually get a judge to decide what is fair.

Yes, you have to house ds and there are many ways of securing your future - he could agree to take the money at a later date like when ds is 18 and postpone the equity, or he could take a future share.

the 30k, unless one of you can prove you put more in than the other then it's taken as jointly put in.

I have recently agreed a deal.

I got a fairly low valuation, actually come to think of it it was just the value I told solicitor and exH's side agreed. Eneded up about £15000 equity on paper.

I initially agreeded to pay exH £5000 when house was sold in the future. Not planning to sell anytime soon.

My solicitor said wait until we see what exH's pension is as I am entitled to a percentage of it as his wife.

My solicitor sent a agreement to be signed saying £5000 and no dibs on his pension, they changed it to £3500 , they dropped it not me.

So that is now the agreement I pay him £3500 on the sale of the house when ever that may be, I plan to never sell, perhaps rent it out , plus equity is now about £25000.

What ever you do do not agree to a percentage of the value at the time, prices will pick up so agree and amount now.

I am currently divorcing ex. I managed to get a lovely low valuation on house which he hasn't challenged - as yet!! Shows we ahve about £65,000 equity. he wants me to sell, I don't want to as the cost of a 3 bed hosue is similar to cost of 4 beds in this area - about the same as my valuation surprisingly!!! As he is entitled to a share of the equity I'll have to offer him the smae share he would get if we sold it. If there were no children involved that would be split 50/50 but as there are children, I have been told it will be around a 75/25 or 80/20 split so I'm having to offer him about 20% of the equity to buy him out. You can then gets deeds/mortgage transferred into your name only. Courts apparently try to keep the children in their home if possible so it would be looked on favourably. I don't want any financial ties with ex! Also be careful of agreeing to pay a certain amount in the future - I know someone who agreed to pay her ex a certain sum if she sold her house but didn't realise it alos applied if she co-habited!!! I wouldn't look down the development potential yet until after divorce!!! If it comes up just waffle about the credit crunch, state of the market etc etc and say you aren't even thinking along those lines yet as tyou're concentrating on providing all your thoughts and energies on providing a stable home for your ds.

Thanks, Leslaki, for some helpful advice. It sounds like you are finalising a good deal.

I wonder how things stack up for DS and I, since the family home is a four-bedroom, two-bathroom house - big for just two people - and so it's questionable that DS should stay in it (other than for, obviously, reasons of feeling settled and secure). Plus, XP and were, of course, not married, so legally, as far as I understand it, he is under no obligation to help me out financially in any way, although he may do. So I am thinking we'll have to go more for the 50/50 split than the 75/25 (or even 80/20) you mentioned, simply because we are not married.

XP knows that my thoughts of converting the house into several properties is something I'm actively looking into, since it could be a way to provide us with some extra income and enable me to work part-time instead of full-time, and therefore be around more for DS. His knowing this could complicate a straightforward valuation. But like you say, it really could be non-viable given the current economic climate.

Thanks again.

will give you my side. I got three low valuations with showed that there was 40k in equity. I had to give half but couldnt so i gave him what he could. I knew i wouldnt be able to give all of the half amount so we came to an aggreement which he accepted. He knew he would never get the money any other way but i had to raise it.

Scary time.

Surely the 75/25 is because of providing a home for dc not because of being married, if there were no children it would be 50/50, but now you need a bigger home than him because you have to provide the majority of the home provision for your dc.