Separation & Equity Release

J

Jane2

Guest
My partner and I are separating and he proposes buying my share of our house. Mortgage 62000 value 200,000. He disputes the valuation and had it valued at 140,000. I had it valued twice, one valuer said 180,000, another said 200-220,000. I have bought a new house and could do with the equity when I move in a few weeks time. There are 2 children involved and maintenance issues, to be sorted.
If we can't agree a valuation and have to go to the circuit court, the equity will be eaten up in legal fees.

Q1. Am I entitled to more equity because the children are staying with me? We are not married.

Q2 Will I have to pay stamp duty on my new house?

Q3 Will I be able to claim TRS or section 23 relief while I am still tied to the old mortgage?

Q4 Will I have to pay tax on the equity if I ever get it?

Any other advice would be appreciated.
 
Q1 - seek advice from your solicitor (I presume the house was bought in joint names?)

Q2 If it's a new house under 125sq m then no stamp duty is payable on a main residence

Q3 you will be able to claim TRS on the new property

Q4 No - as the house was your former main residence there will be no tax.

As there is such a disparity in the amount your partner claim the house is worth and the quotes you've got I would ask him to get a minimum of two independent written valuations to show you. Also given the situation with your children I would advise you to consult a solicitor ASAP.

Sarah

www.rea.ie
 
Thank you Sarah. I have a solicitor and he does as well. His solr is sticking with their valuation and stating a judge would come down half way between the two. If we have to go to court, the legal fees will eat up the equity, as we will need barristers. He also wants half my SSIA and half the value of the car, both of which I paid for exclusively. I have a credit union loan which was partly for home improvements, but he doesn't accept liability for any of it. It's all very messy.
 
How on earth can he lay claim to half your SSIA and half your car??

With regard to the house value go around all your local estate agents and find out what similar size/age/condition houses have ACTUALLY sold for in the last six months. That is the most accurate way to guage your house's value.

Let us know how you get on.

Sarah

www.rea.ie

ETD : Please ignore any scare stories he tells about what a judge will or won't do - unless he's been through this process before he's just trying to intimidate you.
 
Jane2 said:
Thank you Sarah. I have a solicitor and he does as well. His solr is sticking with their valuation and stating a judge would come down half way between the two. If we have to go to court, the legal fees will eat up the equity, as we will need barristers. He also wants half my SSIA and half the value of the car, both of which I paid for exclusively. I have a credit union loan which was partly for home improvements, but he doesn't accept liability for any of it. It's all very messy.
Click to expand...

Hi Jane

My partner has just come through this although there were no complications. However, we had a lot of legal advice and done a lot of research. If you are not married then he has no legal right to anything that is not in your joint names. So I wouldnt worry about the SSIA and the car. That is, provided he didnt pay towards them and has no evidence to prove it.

I can't advise on the house though. An independent valuer might be appointed to resolve the issue.
 
His solicitor has looked for "full and frank disclosure" of all assets and liabilities. My current account became a joint account for one year, from Sept 04 to Sept 05. Both salaries went into it and mortgage, SSIA, car loan was paid out of it. However, I earned significantly more than him, enough to cover my SSIA, car loan, half the mortgage and household expenses. Before it was a joint account, only my salary went in and the mortgage, car loan and SSIA were paid out of it.

If he does not give me a fair price for my share, I am considering holding onto it and paying half the mortgage. However, I would prefer a clean break and would be strapped to pay both mortgages.

Anyone wanna buy half a house????
 
Hello,

My husband and I are going to separate...and we have 3kids from 3 to 8

We would consider ourselves as having done well.

- small mortgage on valuable home
- property in spain
- and other large house built on my homeland with rental income.

My husband has a good job but unfortunately I do not work anymore due to illnesses so, have no real income only invalidity pension.

My father left me a site on my homeland 2007 and we built a house there in last 2 Years. This will be very distressing for my father as it was a gift to me and it is on home land. So, with all the work I put into this project and emotionally attached to it......I would hate my husband getting a share of it if we had to sell this property as a result of separation. we as a couple built this house to a high standard so that if we had to move for jobs we would have it + it would be my pension.
Also, my husband has an excellent pension with his work.
How do I stand ?
- can I keep family home
- trade house on family land for his share of pension.
I would love to keep the house on home land in GAlway but, yet stay in family home in Offaly where kids are settled etc
 
1. Go to a solicitor.
2. Take proper advice
3. Be prepared to hear and accept advice you don't like.
4. Be prepared to trade and lose financially if you have a strong emotional attachment to a particular asset.
5. Courts have heard it all - in the end, after the childrens welfare is dealt with, it will be about money.

mf
 
another said:
Also, my husband has an excellent pension with his work.
How do I stand ?
- can I keep family home
- trade house on family land for his share of pension.
I would love to keep the house on home land in GAlway but, yet stay in family home in Offaly where kids are settled etc
Click to expand...
Have you thought about where you think your husband should live?
 
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