Hi all, bought house 2 years ago with boyfriend for €290,000. now worth €245,000. Balanace on mortgage approx €235,000. He put down €40,000 with my €10,000. We recently split and I moved out (I still contribute to mortgage). I want him to buy me out, he can keep all contents (and dog unfortunatley) how much am I entitled to? So far I have invested €10000 deposit, approx €6000 to furnish it, €10000 in mortgage payments and approx €2000 in bills. I dont just want to walk away with peanuts after all that, any help will be most grateful. Thanks
Couple separating, how much to buy each other out?
- Thread starter lash777
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PaddyBloggit
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It isn't as simple as that. You are 50% liable for the mortgage as it stands.
If he was to take over the mortgage he would have to take out a new loan .... which he may not get ... he'd have to cover the negative equity ... and you'd expect him to pay you a sum as well.
I reckon you should count yourself lucky if he will be able to take on a new mortgage so that you can walk clear of the investment. If he can't ... you're stuck.
If he can .... lie the loss of the €18k ... it's a lot less than the negative equity.
If he was to take over the mortgage he would have to take out a new loan .... which he may not get ... he'd have to cover the negative equity ... and you'd expect him to pay you a sum as well.
I reckon you should count yourself lucky if he will be able to take on a new mortgage so that you can walk clear of the investment. If he can't ... you're stuck.
If he can .... lie the loss of the €18k ... it's a lot less than the negative equity.
Brendan Burgess
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Did you have an agreement in writing? What did it say?
Did you share the repayments each month?
I assume you owned the house 50/50 if you did not have an agreement saying otherwise.
| Total | you| him
Cost of house | 290 | 145 | 145
Loss in value | 45 | 22.5 | 22.5
|||
Deposit | 50 | 10 | 40
Capital repaid | 5 | 2.5 | 2.5
Furnishing | 20 | 10 | 10
Total contribution |75 | 22.5| 52.5
So you contributed 22. 5 which amounts to exactly the same as your share of the loss in value
He owes you nothing and you owe him nothing.
Assumptions
The furniture is still worth €10k - you should really allow for wear and tear or he should give you back the furniture you bought and then you owe him €10k to get out of the deal.
You paid €10,000 in mortgage repayments each, but only €2,500 of those repayments were capital. The interest is the same as rent. So you were paying for the use of the house. You can’t expect this back.
The €2,000 in bills is the ongoing cost of living and is not an investment. It is assumed that this was your share of €4,000 in bills.
Did you share the repayments each month?
I assume you owned the house 50/50 if you did not have an agreement saying otherwise.
Cost of house | 290 | 145 | 145
Loss in value | 45 | 22.5 | 22.5
|||
Deposit | 50 | 10 | 40
Capital repaid | 5 | 2.5 | 2.5
Furnishing | 20 | 10 | 10
Total contribution |75 | 22.5| 52.5
So you contributed 22. 5 which amounts to exactly the same as your share of the loss in value
He owes you nothing and you owe him nothing.
Assumptions
The furniture is still worth €10k - you should really allow for wear and tear or he should give you back the furniture you bought and then you owe him €10k to get out of the deal.
You paid €10,000 in mortgage repayments each, but only €2,500 of those repayments were capital. The interest is the same as rent. So you were paying for the use of the house. You can’t expect this back.
The €2,000 in bills is the ongoing cost of living and is not an investment. It is assumed that this was your share of €4,000 in bills.
Your deposit of 10K is gone as the property if sold would realise 10K (minus auctioneer and legal fees) so would leave just about zero. In any case your percentage deposit was at 4 to 1. So his share is 8K and you 2K.
The furniture you paid for, well now it's second hand and probably not worth selling either. As you don't need or want it, just leave it. Makes it easier for him to rent a room and take over the mortgage liabilities from you.
Your morgage repayments are not relevant.
How do you think paying bills is an investment. Are we talking gas, esb, water, rates, telephone, food etc?
You are oh so lucky to be able to walk away from this relationship and financial burden and start with a clean break. Unless your boyfriend cannot get the bank to agree a mortgage in his name. Then you will have to continue to pay the morgage whether you live there or not.