Selling my half of house to boyfriend - financial implications

J

Jeanc

Guest
Hi
I brought a house with my boyfriend in November 2006 for €570k. We moved in in March 2007 and have a 25 year morgage at approx 3k a month. It is not working out and we are going to separate. He wants to buy my half of the house. I paid 25k of the stamp duty and 1.5k per month of a morgage since March 2007 (18k total). Given that house prices have dropped significantly since buying the house and we are definately in negative equity is it a fair deal for me to give him my half for nothing? What other cost will I have, legal fees, bank fees etc?
Also what are the stamp duty implications?
Thanks in advance
Jean
 
a friend of mine was in a similar situation, what she did was got the house valued, then divided the "profit" in half, they worked out a price for the furniture etc and paid half the legal fees , which i think were 500 each. basically they bought the house for 160, it was then worth 240 which = 80 and halfed that at 40 each, he then remortgaged the house to 200000 and gave her 40000 minus the half the legal fees
 
Jeanc said:
Hi
I brought a house with my boyfriend in November 2006 for €570k. We moved in in March 2007 and have a 25 year morgage at approx 3k a month. It is not working out and we are going to separate. He wants to buy my half of the house. I paid 25k of the stamp duty and 1.5k per month of a morgage since March 2007 (18k total). Given that house prices have dropped significantly since buying the house and we are definately in negative equity is it a fair deal for me to give him my half for nothing? What other cost will I have, legal fees, bank fees etc?
Also what are the stamp duty implications?
Thanks in advance
Jean
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Did you pay 50% of the stamp duty? Did you pay 50% of all original costs? Did you pay 50% of the mortgage? Of the furniture etc?
What do you mean, "give him my half for nothing"?
 
Hey OP firstly sorry to hear about the break-up

Gordanus said:
Did you pay 50% of the stamp duty? Did you pay 50% of all original costs? Did you pay 50% of the mortgage? Of the furniture etc?
What do you mean, "give him my half for nothing"?
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Surely if they are in negative equity as the OP mentions then walking away would be the best option, depending on calculations of course. The stamp duty may be wiped out by the drop in the price of the house so the OP could end up owing money if it was sold on the open market.
 
As the OP appears to have more into the House, why doesn't the ex-Boyfriend simply walk away. I cannot understand as to why the OP must take a hit simply to end a relationship.

This was an intimate relationship incorporating a business transaction which appears to be going pear shaped.

Have you offered to buy him out of the transaction ??
 
mercman said:
As the OP appears to have more into the House, why doesn't the ex-Boyfriend simply walk away. I cannot understand as to why the OP must take a hit simply to end a relationship.

This was an intimate relationship incorporating a business transaction which appears to be going pear shaped.

Have you offered to buy him out of the transaction ??
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If the house is in negative equity then it is the OP's boyfriend who is taking the hit by allowing her to walk away.

Eg, if they paid €400k for the house and it is now "worth" €350k then by rights she should be paying him €25k to take full responsibility for the debt. In this scenario if he is willing to let her walk away for nothing then she should thank her lucky stars.
 
But the boyfriend will probably have this house for many years and the op walks away with absolutely nothing. I think she should be getting back what she put into, or something at least. Nobody can predict the future but what in five years if that house is worth a lot more and the boyfriend decides to sell then making himself a lovely profit.
 
And if it drops more?
Basically, if walking away is something you are ok with, it may not be the end of the world.
It's something that ye two need to sort out between ye.
 
deedee80 said:
But the boyfriend will probably have this house for many years and the op walks away with absolutely nothing. I think she should be getting back what she put into, or something at least. Nobody can predict the future but what in five years if that house is worth a lot more and the boyfriend decides to sell then making himself a lovely profit.
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Walking away with absolutely nothing is better than walking away owing the bank thousands, which is what would happen if they sold up and split the remaining debt between them. If he's buying her out he could expect to pay market value, but by letting her walk away he's paying her above market value in effect. Asking for all of the money that she put into a depreciating house is unrealistic.

The OP might clarify if its not an option for her to remain in the house?
 
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