Splitting up with partner, house issues

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postergirl

Guest
Hi folks, yet another splitting up scenario - would be v grateful for advice.

Bought house with my other half 3 years ago for 385K. He paid in 40K from sale of his apartment. Since day 1 we have split mortgage repayments 50/50. House is now worth about 250K with a mortgage of 339K outstanding so selling is not a realistic option. I have moved out and have no idea where I stand.

We both took loans out to furnish our house - him 20K and me 10K as well as 5K to pay off credit card after I maxed out decorating. We have each been paying them back ourselves. While he payed utilities, I paid for groceries and other incidentals.

When we got our mortgage he had a very good private sector salary which has since been cut and I'm in the public sector and while safe in employment, am down the best part of 20% so can't afford the €1400 repayments alone.

Can anyone advise on what they think I may be liable for? Am so confused.
 
Can you clarify if both names are on the mortgage and deeds?
What were you thinking you might be liable for?
Is he taking over the mortgage and going to remain in the house. If that is the case I am thinking you will be liable for circa 43k.
 
Yes both names are on the deeds and mortgage.

He is staying on and I have left.

I would have thought I should pay back 20K ie half of the 40K he contributed and that we share the loans, evaluating the shortfall that exists seeing as mine is smaller.

Just wondering how you landed on 43K?
 
You would be liable for some of the negative equity that he is left to pay. I had taken the 40 k he put into it seeing as he was staying.
current value v mortgage - 5k aplit by 2 the 5 k coming from difference in loans.
 
Thanks so much for your help but I'm completely lost can you explain that again please?
 
If you both agree on what the current value of the property is (possibly doubtful), there's a shortfall of 89k that you are both responsible for.

In the initial funding of the decoration/etc, he contributed 60k (40 + 20) while you contributed 15k (10 + 5), so a difference there of 45k in the funds contributed to get the house to its current value.

If you both agree that the groceries and utilities elements of payments cancel out, I'd have thought that a figure of about 67k (half of the 134k, 89 + 45) would be what's required to walk away from it (though I can only imagine how much debate can/would arise over it). This assumes you both retain the existing loans you hold.

So it'd be the 20k (half of his original 40k), 17.5k in loans (half of the 35k loans total) and 44.5k (half of the negative equity of 89k) that you would be liable for based on the figures above (82k, so the 67k + the 15k existing loans you have).

This is based on the assumption that you agree/wish to have both made a 50/50 contribution to the entire funding of the house. In terms of his initial investment and the other costs paid to date, you/he may disagree on what was intended to be split 50/50 down the line... so something that will require a lot of discussion to find a workable solution.
 
There's a very large caveat there over whether or not he will be in a position to take on the existing debt on his own. Even if he is willing to do it, he might not be in a financial position to do so. In which case, it could lead to further complications for you both.

Best of luck with getting it resolved, whatever happens.
 
Thanks I really appreciate your comments, I'm such a novice at all of this.
 
Happy to admit I have zero experience of this, I've literally just taken the figures mentioned and split them down the middle. It's very much 'ballpark' stuff.

Someone with more experience of such a situation might be able to provide far more detailed/valuable advice (e.g. rather than looking at the outstanding mortgage figure, it might be more relevant to get the current settlement figure [which would be lower due to less interest due] and calculating your outstanding figures from that? Assuming you will be making a lump sum payment from the mortgage to allow your name be removed from the deeds and mortgage asap. In this scenario, you will be swapping a secured debt for unsecured debt and paying a higher interest rate as a result, while the mortgage will have relatively significant interest savings due to a lump sum being paid from it so early in the term), but it's well beyond what I'd feel comfortable commenting on.
 
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