Buying Out A Partner (House)

[Patsy33]

I was wondering if any of you have knowledge concerning buying out a partner, from shared house. My daughter and her long term partner have parted. She pays the mortgage and he pays all other bills. She is currently living with me and their little son, my grandson. The 2 bedroom house is worth approx. £150.000. He has said she'd probably get about £20,000, but I don't think that's right? They've been in house for about 10 years. Any help/ advice?

[Ryzen]

Whos name is the mortgage in?

[bednobs]

how uch is left on the mortgage?

[brainiac]

If she pays the mortgage on her own, is the house in her name alone? If not, why wasn't he contributing to the mortgage?

[bednobs]

also who is buying out who?

[Bobbisox1]

Depends what’s left to pay , IDE imagine to sell it they would get half each , if your daughter decides to stay with your grandchild,he’s duty bound to provide a roof for the child till leaving educationtherefore he’d have to contribute to the mortgage even if it’s through the CSA , BM might be the one to help here xx

[davebro]

Depends who owns the property (are both names on the deeds), it's current value & whether there is an outstanding mortgage debt.

[ummmm]

Not quite as simple as Bobbi is saying.

[Rockrose]

He is not duty bound it depends on so many factors, income, hours work etc

[ubasses]

Have a read of this:
https://www.citizensadvice.org.uk/family/ending-a-relationship/how-to-separate/deciding-what-to-do-when-you-separate/
It would be a good idea to actually go down to Citizens Advice and talk to them. They will be able to point her in the right direction to ensure she gets the right help.

[Bobbisox1]

Patsy, much has changed since I was in that position,he WAS duty bound back then but as ubasses says, go to the CAB and they’ll give you the best advice

[Patsy33]

Ok, it's joint Mortgage.
Not sure how much is left on mortgage. Quite a lot I think. £12 000, deposit was put down about 10 years ago, monthly payments £550. House was bought gor £120,000. Its an older terrace house, but in a much sought after area.
He, wants to buy my daughter out. We are all still friends. The house is only 3 minutes from me.

[ummmm]

She'll have to get it valued and the equity will be split.

Bobbi - how can you be duty bound to pay for something if you don't have the money?

[Ryzen]

If the mortgage is in both names, the lender will have to agree to release your daughter from it. It will cost him a lot more than 20k.

[Prudie]

I'd definitely get legal advice, especially where support for the child is concerned. In extremely basic terms if there are no children involved then when my daughter did this with her partner you take the outstanding mortgage off the current (professional) value of the house and split the difference as to what each gets (or pays the other).

[davebro]

IF you are all still friends it shouldn't be too difficult. Get a couple of estate agent valuations, deduct the remaining mortgage debt & he pays your daughter half of the equity. e.g. 150,000 - 80,000 = 70,000.
He pays 35,000.

[TonyV]

Patsy I would suggest first thing to do is to get 3 estate agents to value property and get a statement from mortgage provider.

[Patsy33]

That's what me and others thought Ryzen.

[Prudie]

And yes he can't just pay her off and take over the mortgage. The lender would need to agree that he could manage the repayments on his own.

[Patsy33]

Thank you everyone. I think my daughter needs to get an appointment with CAB.
Then get house valued.
It's all very sad.

[davebro]

Can they not get back together?