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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10536
Experience:  Barrister 17 years experience
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I have a joint mortgage with my now ex partner. We have each

Resolved Question:

I have a joint mortgage with my now ex partner. We have each equally contributed to the mortgage repayments monthly however the deposit was contributed un-equally (80% from me / 20% from my partner).
In the case of her 'buying me out', legally how are the monies resolved?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Dear Alex, basically you each own a share in the property in proportion to your contributions. So, if there is equity of 30% in the property and you contributed 80% of a 10% deposit (8% of purchase price), then you would own 18% of the property (8% plus half of 20% of remainder of equity on the basis of your mortgage repayments). The law is that each of two co-habiting partners own a property in proportion to their contributions. So if you contributed equally to mortgage repayments, then what proportion of the equity which is represented by the mortgage repayments is divided equally. And what ever proportion of the property equity as is represented by the deposit, then you get 80% of the deposit amount.
Expert:  Buachaill replied 1 year ago.
2. If you want to provide some figures, I will be happy to flesh these issues out. However, the basic idea is that you own the property in proportion to your contributions, when you are an unmarried cohabiting couple.
Customer: replied 1 year ago.
The house when we bought it was worth £268,000. We have a £238,000 mortgage, therefore put down £30,000 of a deposit. The deposit was contributed as follows:
£25,000 - from me.
£5,000 - from my partner.
Apart from bank statements, which show that monies came out of my account and into our solicitors, there is not however any agreement that we contributed differently? Would statements be enough?
The value of the house is now estimated: £320,000.
Expert:  Buachaill replied 1 year ago.
3. in such circumstances, you would be entitled to £51,000 back if your partner was buying you out. This would be the £25,000 deposit plus half the equity in the house, namely half of 52,000 which is equal to £26,000. Adding £25k + £26k would give £51,000 to which you would be entitled.
Customer: replied 1 year ago.
We do not have a deed of trust, therefore contributions can only be assessed on statements only. How would this been viewed legally?
Expert:  Buachaill replied 1 year ago.
4. There is no problem proving contributions from statements. This is good evidence in law. So, legally speaking, there is no problem with you proving contributions from statements.
Customer: replied 1 year ago.
If she refuses to sell due to not agreeing a buy out sum, who would be liable for legal fees and are you able to confirm what are the average fee's if things went to court?Currently I am staying with my parents and she is in the property and believes that, as I moved away from the property, I am not entitled to as much if it went to court? The reason which she has stated this is that I initiated the breakup.
We are not married and do not have any children.
Expert:  Buachaill replied 1 year ago.
5. There is no rule of law that person in a co-ownership situation who does not sell out is thereby liable for legal fees. So if you partner refuses to sell, each side would bear their own costs. Similarly, if you refuse to sell, you do not become liable for her legal fees. Secondly, it is not correct to think that just because one partner has left the property that they are entitled to a lesser sum for their share. That is nonsense. Be aware additionally, that either of you can arrange to sell the property at any time as the house is held on a trust for sale in law, so either party can force a sale.
Buachaill, Barrister
Category: Law
Satisfied Customers: 10536
Experience: Barrister 17 years experience
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Expert:  Clare replied 1 year ago.
HiSince there is no Declaration of Trust in place the assumption under property law is that the equity should be divided 50/50 between you. There is case law which is helpful in setting out that it can be argued that the person who made a greater capital contribution should get a larger share - but it is not s simple "ask and get" process.Accordingly the best way forward is to negotiate with your ex using Family mediationhttp://www.familymediationcouncil.org.uk/find-local-mediator/to try and agree the way forwardClare