Buying my ex out... how much do I give her?

D

Daiti

Guest
Just curious as to what I have to pay to buy my ex out and take over the mortgage.

The current value of the house is between €450,000-€500,000 after just having it valued by three seperate agents. She has not been living in the house for a year and has not been paying anything towards the mortgage in that time. When she left the outstanding mortgage was around the 260,000 mark and is currently just under 250,000.

Would just like to clarify so I can move forward on this.

Thanks in advance,

Daiti...
 
I know someone woh has just done this:

You 1st have to agree on the agreed value, be it the average or some mutually acceptable figure....every agent as you have discovered will liklley value it slightly differently and if you are not letting a buyer dictate an actual "value" ( ie what the market is actually prepared to pay ).

She should then be entitled to half this agreed value.
Fees alos could be halved...easiest way.

Stamp could be liable on the part you buy her out of and CGT for her, depending on both your circumstances!
 
Get a good solicitor, I have come accross cases that where the other party has not contributed to the mortgage for a period of time and the general upkeep of the property that this can also be taken into account when it comes to the splitting of money.
 
Of course its not every detail but thats the bones of it.
Too have some idea of what you are going about prior to talking to any professional is always beneficial.

The bank giving the loan to Daiti will ultimately decide the value, but like the valuations received already, they could get different valuations from different banks valuers....

It could be complicated if you covered her mortgage payments and you perhaps may want to deeduct that from her share...but as LW stated all the nitty gritty needs to be sat down and discussed with a solicitor.
 
Trying to come to a mutually agreeable settlement should be the first step. Calling the lawyers should be a last resort as the costs could be significant.

I can't see what's wrong with monkeyboy's rough outline of a possible mutually agreeable solution allowing for a non 50:50 split if each individual contributed different amounts to the purchase and upkeep of the property/household.

What are relations like between the former couple? If relatively civilised then they should be able to sort this out between them. Bear in mind the potential tax issues mentioned above.
 
ClubMan said:
Trying to come to a mutually agreeable settlement should be the first step. Calling the lawyers should be a last resort as the costs could be significant.
Click to expand...

The solicitors are not necesarily required for the actual agreement but more for the sale and purchase procedure....
 
okay thanks for that... I don't want to go too far down the road of her not paying anything towards the house because we both have to come to a mutual agreement about who buys the house.

In principal what we have agreed is that we take the mortgage as it stood a year ago away from the current agreed value of the house and half it to get the figure I have to give her and add to the current mortgage to get a new one. Does this sound about right?
 
monkeyboy said:
The solicitors are not necesarily required for the actual agreement but more for the sale and purchase procedure....
Click to expand...
Sorry - I thought that somebody was suggesting getting the lawyer in as part of the settlement negotiation and not just for the conveyancing.
 
Daiti said:
In principal what we have agreed is that we take the mortgage as it stood a year ago away from the current agreed value of the house and half it to get the figure I have to give her and add to the current mortgage to get a new one. Does this sound about right?
Click to expand...
No - this seems meaningless to me. She is more likely to be entitled to half (or whatever) of the market value at some point in time (e.g. a year ago). Think about it - if you both sold the house a year ago and split the proceeds then that's what you both would have received.

Doh - sorry - you would both then have had to clear the mortgage and then split the excess. My mistake. :eek:
 
thats the theory we are working on...half the proceeds...

Where does stamp duty come into all of this... do I have to pay it again even though I already in theory own the house....??? the does she have to pay any sort of tax on the profit from her half of the house?
 
if you are a first time buyer and you are keeping the house, then you are not liable for stamp duty at all. your tax situation will not be affected.

good luck!
 
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