Joint mortgage split...

[Luke409]

A relationship that I have been in for 5 years has come to an end, we are not married. Last year we bought a house together and I provided a sizeable deposit for the house that was given to me by my grandmother...sort of an advance on inheritance. The mortgage on the house is in joint names although I have covered every mortgage payment and bills/insurances involved by myself. My partner is prepared to move out but has indicated that she wants half of the equity in the house, even though she has not contributed at all in the past year. There is a year left to run on the mortgage that we currently have, do I have to wait until the fixed term is up to re-finance?

I would like to get my partner removed from the mortgage asap. I earn a good salary so am not overly concerned about re-finance, especially as I have been servicing the mortgage for a year by myself.

Can anyone advise on the quickest and cleanest route of removing her from the mortgage?

[askyourgran]

I wish I could give a definate reply luke, but would your bank or mortgage lender advise you about this, otherwise a solicitor )but you would probably have to pay) could advise you of your rights regarding sharing equity.

[granny grump]

if the mortgage is in joint names you will need to come to an arrangement with your partner. it would be advisable to get a solicitor involved. My daughter has just gone through the process and received half of the equity in the property - not a lot. Her ex took a loan with the existing lender to pay her this. The mortgage was joint and they both contributed to it so the situation is slightly different. The mortgage is now in his sole name Even if you have made all the payments it could be ruled that your partner has contributed in other ways and this would be taken into account If it was not drawn up legally at the outset that you put in x amount and your partner put in y and if the property was to be sold the ratio of the money to go to each pary would be directly related to that split you may have trouble sorting out now.

If you are able to put the property in your sole name you can usually do it while on a mortgage product that has a year to run. Check your mortgage offer and see if the mortgage product is 'portable' If it is and your partner agrees you should be able to 'port' the rate that you are currently on and if you need additional funds and you are eligible you should be able to arrange that on a new rate. speak to your lender speak to a solicitor or CAB & your partner if you are speaking on terms

[stokemaveric]

sorry to say luke but she will be entitled to half of whatever equity is in the house,whether she has contributed to the mortgae payments or not in short and brutal terms tiy will have to ''buy her out''...

[Eve]

Was any of this discussed with your legal advisor when you bought and was anything put into place like a Deed of Trust. The property might be in joint names but are you on as joint tenants or tenants in common and, if the latter, in which shares. I know it's unlikely if you're asking but worth checking just in case something was put in place when you bought.

[SeaJayPea]

Get somebody to do a valuation, possibly the agent you bought it through. Speak to them nicely and they'll value it at what you paid for it. It's only been a year after all. That way, there's no equity and Bob is your uncle.

[ummmm]

Did you get anything signed regarding the deposit?

Something similar happened to me. He took half even though I'd lived in the house for about 4 years before he moved in.

[SeaJayPea]

The equity is the difference between what you paid for the property and what it's worth now. Depending on where you are and the state of the market that could even be a negative number at the moment. See this link, it says the annual FALL was 2.15%:

http://www.guardian.c...se-july-land-registry

Good luck.

[ubasses]

The equity it the difference between the value of the house and the mortgage, ie value £100,000 mortgage £50,000 equity £50,000.
Could your grandmother come to the rescue, by saying the money was to help you both get on the property ladder together and now that isn't the case she would want repaying before any equity is shared. If your ex hears that she may not want to take it any further.

[SeaJayPea]

Are you sure ubasses? I think not. She would only be entitled to half of any gain in value, surely.