Ex buying me out...good deal?

ailbhe

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brief summary...my ex partner and I bought a house in 2005 for 280k. We got a joint loan of 20k to furnish and finish the house (builders finish), we had a deposit of 20k and a mortgage of 260k.
I wasn't working at the time so the house was put in his name alone as was the mortgage of €260k. In 2008 we got a joint mortgage for 280k, paid off the joint loan and both our names went on the mortgage and the deeds.
We split up shortly after that and I moved out at his request.
He remained in the property and I rented privately. A few months later we agreed to put the house up for sale but it was the time of the property crash and hasn't sold so it is now in negative equity of about €20 - 30k.

He has been paying the mortgage alone as I am not in a position to pay both rent and half the mortgage.

He now wants to take over the mortgage and wants me to write a letter to the mortgage co advising them I no longer live there and that I want my name taken off the mortgage and deeds.

he has said he will cover all legal expenses and that I won't be out of pocket at all i.e. that I don't have to cover my share of the negative equity.

Seems good in theory but is there anything I should watch for? Any legal implications re: tax? Anything I should get off him in writing as to be honest, I wouldn't put it past him to screw me over in the long run as the split was far from amicable and he definitely doesn't have my best interests at heart! ;)
 

mf1

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"He now wants to take over the mortgage and wants me to write a letter to the mortgage co advising them I no longer live there and that I want my name taken off the mortgage and deeds."

It sounds like a good deal for you. And the sooner the better. The big issue though is whether the lender will agree to this. It is a non starter if they will not agree.

Check that first and if yes and if you want to go ahead, get your own solicitor to advise you throughout the process.

mf
 

ailbhe

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481
He says he needs the letter before the lender will consider him taking over the mortgage. As in, he needs it as part of his application.

But will I be shooting myself in the foot if I write it? If he doesn't get approval will there be comeback on it?
 

UFC

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That's a great deal.

I would contest your figures of only being in 20 - 30k negative equity. Are the same houses in your area actually selling for 250k?
 

ailbhe

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That's a great deal.

I would contest your figures of only being in 20 - 30k negative equity. Are the same houses in your area actually selling for 250k?
A smaller house (sq footage) but same type and number of rooms,new and finished, in the same estate is up for asking price of €275k so I don't think I'm being too extreme in my guesstimates. When we finished the house it cost us 300k in total and was valued at over 340k at the time.
 

tosullivan

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asking price & selling price are 2 different things. Any houses nearby or similar sold recently? You say yours hasnt sold after trying
 

ailbhe

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I don't know if any have sold. There are very few detached houses in the estate but some of the semis have sold.
Ex has the house on the market for 330k and will not reduce asking price. I spoke to the EA who said 260k was more realistic and that was a year ago so I'm guessing it's less again.

It's not really about what the house is worth though. It's about the offer I'm being made and how to protect myself if I go with it.
 

NorfBank

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He says he needs the letter before the lender will consider him taking over the mortgage. As in, he needs it as part of his application.

But will I be shooting myself in the foot if I write it? If he doesn't get approval will there be comeback on it?
He won't need the letter to get an approval in principle, he will need it to get a formal loan offer.

As mf1 said, you need to get yourself independent legal advice on this, askaboutmoney is fine for guidance only.

www.moneybackmortgages.ie
 

PaddyBloggit

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Sounds like a great deal for you.

Best way to keep the deal great .... hire a solicitor straight away.
 

Billo

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I don't know if any have sold. There are very few detached houses in the estate but some of the semis have sold.
Ex has the house on the market for 330k and will not reduce asking price. I spoke to the EA who said 260k was more realistic and that was a year ago so I'm guessing it's less again.

It's not really about what the house is worth though. It's about the offer I'm being made and how to protect myself if I go with it.
I would say that what the house is worth now has a lot to do with it.
If the realistic price a year ago was 260k then it is probably worth 220k or less now.
Therefore more negative equity.
It looks like a good deal to me, based on information given.
 

ailbhe

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481
I guess I'm just too suspicious. I don't trust him as far as I can throw him and I don't understand what he gets out of this other than saddled with more debt. He has huge resentment about "paying a mortgage" for me but he also has no intention of staying in the house and will move as soon as he can sell it (so he says).
So he's taking on my debt, paying legal fees to have me removed and all with the intention of selling anyway?

We agreed once we would break even, then we would sell. So basically if we got 280k to pay the mortgage we'd sell.
But now he's looking at adding more to that (legal fees) and taking on my negative equity.
The man isn't stupid so I just find it hard to believe I'm not going to get stung somewhere. Anyway, off to the solicitor and EA I go to get the bigger picture.
 

Sunny

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Whats your problem? By the sounds of it, this is a great deal for you and it means you no longer have to have a relationship with him in any form. Maybe he just wants you out of his life and is willing to pay to do it.
 

aristotle

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Maybe he belives house prices will eventually shoot back up. Maybe he thinks he will rent it out and eventually sell it in 20 years time and make a bit of money.

It is a good deal for you if you want out of it.
 

ailbhe

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481
As I said in my OP, I want to take this deal but I also want to make sure it does exactly what it says on the tin. He's said I won't be left out of pocket. truthfully, I don't believe him as it wouldn't be the first time he's said one thing and a week later maintained he said something else.

I am just trying to protect myself from thinking I'll not be out of pocket based on a verbal agreement and then a few months later getting a legal bill or a demand that I compensate him for the neg equity.

Verbal agreements aren't worth the paper they're printing on so I can't just take him at his word that I'll walk away in the same financial position that I'm in now.
 
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