Partner and i separating (not married) and partner has agreed to move out of home.

M

morry

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Partner and i seperating (not married) and partner has agreed to move out of home. I initially put 45K deposit on house when purchased.

House Price - 477K
Outstanding Mortgage - 427K
House Worth - 365K

Partner moving out has agreed to pay 25,000. Is this realistic?

Any advice appreciated.
 
Hi Morry

Did you have a written agreement when you bought the house?

How were the mortgage repayments made? Did you both pay the same amount?

If we assume that you each own 50% of the house.

house price|477
current value|365
Loss|112
50% of loss|57
So he should really pay 57k

He could argue that he only owns 45% of the house

house price|477
less deposit|45
balance|432
his half|216
which is |45% of 477
So even if he claims this, he should pay 50k. (45% of 112k)
 
Hi Brendan,

Had no written agreement unfortunately. Both of us paid the same amount mortgage monthly although i paid all other utility bills :(

Better contact a solicitor so. If i wish to remain in the house, would the bank if agreed take the 57K into consideration for me applying for a new mortgage in my own name?

Thanks
 
Assuming you both put in an equal amount into the house less your €45k, I dont think it is fair at all.

If you sold the house now for €365k you would still both owe €62k. If you hadn't already put in €45k, that total would be €107k.

So I make it the fair amount he owes is €53.5k.

He may not have that sort of cash up front so maybe you could work out a deal where he pays around 12% of the mortgage to you each month.

I'd get a solicitor involved just to make sure any deal is fair and set in stone..


UPDATE: Looks like Brendan beat me to it
 
Thanks for comments Dubrov. 12% of the mortgage monthly payment sounds a bit low
 
427k still owed on the mortgage.
If he sells out, he will owe 53.5k of this.

So 53.5/427 = 12.5%

I think this is roughly fair.

You'll need to make sure the contracts explicitly state that he has no claim on the house though.
 
morry said:
Thanks for comments Dubrov. 12% of the mortgage monthly payment sounds a bit low
Click to expand...


Weigh up the cost of going thru a solicitor and the whole thing dragging on for years and heading to court if you cant agree.
 
It sounds like he's getting off very lightly. From a purely financial point of view you should not accept this agreement.

Does the house mean that much to you?

You said it was your deposit.. were you also the higher earner - i.e. did the bank give you the loan based on your salary. Would you have bought a house that big without him? Can you afford it?


You need to remember, for him to have any chance of buying his own house now he would need to save a deposit. You might have a big mortgage but at least you have a house - what would he have to show for his large personal debt?

Just a couple of points worth considering, really.
 
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