Joint Ownership, she stopped paying 14 years ago.

[New-Bee]

Short history
- large mortgage taken out at the top of the market (2006) - just over Eur600k, I funded deposit of Eur50k
- joint mortgage with ex (not married), for 6 years we split the mortgage 50/50,
- acrimonious split, we both went overseas, place is now rented, not currently covering mortgage payments (monthly shortfall of Eur200)
- at time of split property was in negative equity of about Eur 300k - ex wanted me to pay her out 50% of 'purchase price'...ignored evidence of negative equity
- since then i have topped up the mortgage and paid all other costs/tax since....she has ignored it
- equity in property now is probably about Eur250k

Sense check my plan
- my plan is to hold the property until the mortgage is paid and with the bank out of the picture go to court to see about having her name taken of the deeds
- really interested to hear views on what i should be doing to reduce the risks of this....or whether i should be doing something completely different.

 

[Mamamia22]

Why are you paying for a property you half own ? Did you previously get advice ? Who pays the mortgage and receives the rent ? I think you need legal advice.

 

[DannyBoyD]

Your former partner may be able to claim a % of the property; you would be well advised to address this legally before you proceed further.

 

[Brendan Burgess]

Your former partner jointly owns the property.

She can move back in tomorrow if she wishes.

She can demand that the rent be paid to her if she wishes.

I don't see why you are waiting for the mortgage to be cleared.

This will take years and you will have to pay her off or else she will refuse to give up her ownership.

You would need to do a complex calculation along the following lines - simplified

A further adjustment would need to be made for any rental profit you got from the property e.g.

Rental income 2012 to 2024 : €120k
Mortgage interest paid 2012 to 2024 : €80k
Rental profit: €40k
Tax :€20k
Net income after tax €20k

 

[Brendan Burgess]

I don't know how you would even start to make this happen.

You could call her or write to her telling her that you want her off the deeds and she would ask why? She would see no reason to allow herself off the deeds without a substantial payment.

You could start by saying that there was no equity when she stopped paying. She would reply by saying that there is now and she wants half of it.

I can see the equity disappearing in legal fees.

Brendan

 

[Bronte]

I'd argue her half of the rent is her contribution.

You'll have to pay her off if she decides to play hardball. Otherwise you'd have to go legal and argue you paid off more than she did and so you are entitled to a higher percentage. Going legal costs with no guarantee of anything going the way you want it to.

 

[misemoi]

Has your ex attempted to purchase another home? This might be the trigger which means they get back in touch with you on this as having a loan already in their name might impede this. So your plan to wait it out might not work in any case. If they are at that stage, they might realise that the house now has equity and could help fund their new purchase. Not sure if this applies if living overseas. But it would not take long for them to come to the conclusion that they are due some return on the property.