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CatherineK · Sep 25, 2009, 03:46 AM

Can anyone let me know if there is a particular way to divide the proceeds of our house sale? We bought for £330,000 into which my contribution was outright £165,000. We are selling for £358,000. My partner has an interest only mortgage of £110,000.

Any help gratefully received!

excon · Sep 25, 2009, 04:38 AM

Hello C:

You put in 50%. I'm assuming that you paid the mortgage equally. Who got the mortgage, and what its terms were has NO bearing on the sale of the house... Therefore, you get HALF of the profits.

excon

PS> If the mortgage payments were different than above, please tell us what they were.

CatherineK · Sep 26, 2009, 05:12 AM

Hello Excon, Thanks. I realise I wasn't very clear. My partner put in Â£50,000, took an interest only mortgage for Â£110,000 and he has been the sole payer of it (although for some reason it has to be in both our names, I was told) My half (Â£165,000) was from the sale of my previous house. The ownership of the house, however is 50/50 as joint tenancy in common.

Does this make any difference to your previous information?

C

excon · Sep 26, 2009, 05:48 AM

Hello again, C;

Not that I can see. You put up half, and so did he. He's paying the mortgage for his half which has no effect on you. So, when the house is sold, you'll split the proceeds evenly, and he'll have to pay the balance of HIS mortgage out of HIS half.

excon

Fr_Chuck · Sep 26, 2009, 05:51 AM

Yes, you merely split the money being paid, he gets his mortgage paid off, and both of you get close to the cash you both put in. And walk away fairly even to where you started.

CatherineK · Sep 26, 2009, 09:35 AM

Thanks both of you: that really helps. I kind of thought that was how it should go, but it's good to check it with others!
C

excon · Sep 26, 2009, 09:58 AM

Hello again, C:

There's one more thing... It's probably nothing, but...

Even though it's HIS mortgage, I see that you are a CO-borrower. I don't know what kind of written agreement you have with your partner, if any, and I don't know what the terms of your relationship presently are. But he COULD demand that you pay half the mortgage at closing. You DID sign it, after all.

I don't know if you have documentation showing your individual contributions, or even how much it would help if there's a controversy... You MAY need the services of a good real estate attorney.

Of course, let's hope the situation is brighter than the picture I have.. But, I'm always looking for the what if's... especially when one of 'em could jump up and bite my client..

excon