# Another joint mortgage "What is the split" question

#### NoTomLan

##### Registered User
Hi,
Unfortunately like most other threads on this forum, my GF and I are splitting with joint mortgage implications. I would like someone to recheck my numbers here if possible:

House purchase price: 345K
Deposit split: 20K from GF, 60K from me
Estimated house value now: 380K
Outstanding mortgage: 215K

I am going to remain in the house. Hence, by my calculations the return amounts would be as follows, basically following it as if "we" sold the house to "me"

Selling price: 380K
The bank just wants their outstanding balance: 215K for them
Money to divide up: 380K - 215K = 165K
Return individual deposits: 165K - 20K (GF) - 60K (me) = 85K left to divide equally, so 42.5K each.

That would leave GF getting 62.5K and me getting 102.5K. Since I'm to remain in the house, I don't really get the 102.5K into my hand. Instead, I need basically borrow another 62.5K to pay off GF to "simulate" the sale. Does that sound right? I know I can get the 62.5K as an "add on" rather than getting a completely new 272.5K (215K + 62.5K) mortgage, thats fine, its moreso the numbers I would like to validate.

Thanks

#### Brendan Burgess

##### Founder
My first question is always - what does the written agreement you made with your girlfriend say when you bought the house?

What? You didn't do a written agreement?

Did you discuss ownership?
Did she own half the house?
If so, she should have paid a higher share of the mortgage.

If you reached no agreement, then there is a number of ways of looking at it.

The simplest is the way you are doing it.

You put in €40k more, so you get €40k more back out.

This is what it looked like,

So she should have been paying 58% of the mortgage.

If she was paying only half the mortgage

She would get back less under this arrangement.

But as I presume that you did not agree this, or anything else, then this is of theoretical interest only.

Brendan

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#### NoTomLan

##### Registered User
Hi,
Thanks for the detailed reply. Of course, yes you are correct, there is no written agreement. The house was bought as Joint Tenants. I think the main takeaway from the above for me is
The simplest is the way you are doing it.

Hence, I will proceed with that most likely.

#### Baby boomer

##### Registered User
Your basic approach is correct. But to correctly "simulate" the sale, you also have to factor in the costs of sale, say about 10k for estate agent and legal. That means that the return for "we" notionally selling to "me" is Selling Price - Mortgage - Costs of Sale. Herself would then get half of that. Using the figures you supply, that's 5k less for you to borrow for the buyout. That would be a normal formula in a family law buyout scenario.

On the other hand, you may wish to forego the extra 5k in the interests of a smooth uncoupling. Your call

#### dan rather

##### Registered User
I don't think you factoring in the fact that you will be benefiting from having a home after the split? She will be renting

#### Brendan Burgess

##### Founder
Hi Dan

Why would you factor that in?

She could just as easily offer to buy Tom out.

Brendan

#### dan rather

##### Registered User
A family court might factor such a thing in depending on the length of the cohabitation ? Most likely not by your reaction

#### NoTomLan

##### Registered User
Cohabitation is 3 years. Figure of 62.5k is based on the calculation, but we have agreed on 68k as a good will/having to rent for a few months. I wanted to post the figures here to see if they made sense, which broadly they seem to do so. I'm not that fussy over a few grand either way, as alluded to by @Baby boomer above. I just wanted to make sure I wasn't 70k out!

#### dan rather

##### Registered User
Cohabitation is 3 years. Figure of 62.5k is based on the calculation, but we have agreed on 68k as a good will/having to rent for a few months. I wanted to post the figures here to see if they made sense, which broadly they seem to do so. I'm not that fussy over a few grand either way, as alluded to by @Baby boomer above. I just wanted to make sure I wasn't 70k out!
ok you didn't write how many years you'd been there, less than 3 I presume now

#### NoTomLan

##### Registered User
We've been cohabiting here for 3 years, 3rd anniversary of purchase just passed in late March.

So, I think I'm OK on original question. I'd also like a little advice on how much to borrow. I earn 90k and will be borrowing around 265k for the buyout. We had planned some renovation work for about 30k before all this mess. Is the full 295k too much to borrow and should I save up to do it instead? Bank have said 295 is the max they will lend. Renovations are certainly not urgent so I'm thinking of holding off and just borrow enough for the transaction instead. Does this seem a wiser option? I'm kinda risk averse when it comes to borrowing to it seems like a safer option to me, especially in Covid world.

#### Brendan Burgess

##### Founder
Hi Tom

Get this transaction over the line and get it over the line quickly.

I have seen people getting on well together after they split up only to fall out subsequently to the great delight of the legal profession.

So keep this simple. Get the money to buy out your ex. Don't make it complicated by trying to borrow more thus risking a delay in the transaction.

Brendan

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#### NoTomLan

##### Registered User
Makes sense, thanks again.

#### Okokokoknic

##### Registered User
My first question is always - what does the written agreement you made with your girlfriend say when you bought the house?

What? You didn't do a written agreement?

Did you discuss ownership?
Did she own half the house?
If so, she should have paid a higher share of the mortgage.

If you reached no agreement, then there is a number of ways of looking at it.

The simplest is the way you are doing it.

View attachment 4614

You put in €40k more, so you get €40k more back out.

This is what it looked like,
View attachment 4612
So she should have been paying 58% of the mortgage.

If she was paying only half the mortgage

View attachment 4613

She would get back less under this arrangement.

But as I presume that you did not agree this, or anything else, then this is of theoretical interest only.

Brendan
Brendan, in scenarios like this, where there is a substantial difference in deposits, no agreement exists, unmarried, and the property is held as joint tenancy, is the co-owner with the lesser of the deposit contributions within their rights to 'demand' a 50% share of the money left over from sale of the property?