Advice on selling share in house for less than market value
Discussion
Have a joint mortgage with an Ex on a property. Neither of us currently living in it, it's rented.
Just come out of our discount period and onto standard variable rate. Mortgage payment is higher than the rental income. Chances of getting new discounted BTL mortgage in this market about the same as getting employment as an estate agent. House price not risen signficantly since we purchased it. I want out.
My suggestion to the ex is that she pays me an amount equal to what I put in, plus my share of running costs, plus a little bit on top and I sign over my 50% share in the property to her (talking <£10k). I'm writing off any chance of future gains on sale price, but I'm happy with getting clear now, rather than sitting on a risky asset for the next few years and waiting for a price rise that might not happen.
a) legal?
b) tax implications?
c) would mortgage company need to approve / reasses the arrangement?
d) anyone else done this?
Just come out of our discount period and onto standard variable rate. Mortgage payment is higher than the rental income. Chances of getting new discounted BTL mortgage in this market about the same as getting employment as an estate agent. House price not risen signficantly since we purchased it. I want out.
My suggestion to the ex is that she pays me an amount equal to what I put in, plus my share of running costs, plus a little bit on top and I sign over my 50% share in the property to her (talking <£10k). I'm writing off any chance of future gains on sale price, but I'm happy with getting clear now, rather than sitting on a risky asset for the next few years and waiting for a price rise that might not happen.
a) legal?
b) tax implications?
c) would mortgage company need to approve / reasses the arrangement?
d) anyone else done this?
mechsympathy said:
Soovy said:
Why on EARTH would she agree to take over 100% of the impending financial hit instead of 50%?
Maybe she's bonkers. Or buried her head in the sand even deeper than the OP
mechsympathy said:
Maybe she's bonkers.
mmm, a bit. Hence the ex-ness.Reasons she'd keep it would be for her own investment (long term) purposes and there's an emotional attachment to the area it's in.
Lawyer friend thinks it more likely that there are tax implications, probably on her for acquiring an asset without the revenue getting a piece. Could be stamp duty involved too. The Mortgage co. could also throw a spanner in the works if they have issues with her financial position.
Seemed so simple at the time...
if she wants the house and agrees to your deal, then afaik all you need to do is transfer the deeds and mortgage into her name alone.
mate just going through a divorce and agreed a similar deal with his ex, made a bit easier by the fact she wanted to keep the house and its still worth more than what they paid for it.
you will need a solicitor to have the deal made fully legal.
mate just going through a divorce and agreed a similar deal with his ex, made a bit easier by the fact she wanted to keep the house and its still worth more than what they paid for it.
you will need a solicitor to have the deal made fully legal.
brotherharry said:
mechsympathy said:
Maybe she's bonkers.
mmm, a bit. Hence the ex-ness.Reasons she'd keep it would be for her own investment (long term) purposes and there's an emotional attachment to the area it's in.
Lawyer friend thinks it more likely that there are tax implications, probably on her for acquiring an asset without the revenue getting a piece. Could be stamp duty involved too. The Mortgage co. could also throw a spanner in the works if they have issues with her financial position.
Seemed so simple at the time...
ked. Timmy35 said:
brotherharry said:
mechsympathy said:
Maybe she's bonkers.
mmm, a bit. Hence the ex-ness.Reasons she'd keep it would be for her own investment (long term) purposes and there's an emotional attachment to the area it's in.
Lawyer friend thinks it more likely that there are tax implications, probably on her for acquiring an asset without the revenue getting a piece. Could be stamp duty involved too. The Mortgage co. could also throw a spanner in the works if they have issues with her financial position.
Seemed so simple at the time...
ked. To make any offer fair, make it like this :
I'll offer to sell my half to you for X, or if you prefer I'll buy your half for X.
If you would be happy to do the deal either way, it's a fair deal.
I mean You have history, were once friends, lovers, soul mates. Do the decent thing. Whatever that is, and however hard.
I'll offer to sell my half to you for X, or if you prefer I'll buy your half for X.
If you would be happy to do the deal either way, it's a fair deal.
I mean You have history, were once friends, lovers, soul mates. Do the decent thing. Whatever that is, and however hard.
bugger me, you lot are cold machiavellian types. I thought I was the one taking the hit here as she'd get £75k worth for property for <£10k. Leaving aside all the who shafts who business, the biggest barrier here I think will indeed be the mortgage company who may not want to underwrite her 100% ownership against the mortgage.
brotherharry said:
bugger me, you lot are cold machiavellian types. I thought I was the one taking the hit here as she'd get £75k worth for property for <£10k. Leaving aside all the who shafts who business, the biggest barrier here I think will indeed be the mortgage company who may not want to underwrite her 100% ownership against the mortgage.
Why?We're realists, and in tonker's case well qualified ones.
You're screwed. The house is a liability, and she'll want paying to take it off you.
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