So im buying my ex's share of the house she used to live in which is called a Transfer of Equity.
The agreement we have is that she takes 35% of the gross proceedings.
The house is valued at 350,000 and the deposit was 150k with an outstanding mortgage Balance of about 80k.
How much Money does 35% of the gross proceedings calculate to? I have a number of different methods which calculate different figures as below:
a) 350,000 minus the mortgage, then multiplied by 0.35
b) 350,000 - deposit, - outstading mortgage. Then multiplied by 0.35% and then add her deposit back.
Bioth lead to different results! Help
How the original deposit was formed is unclear from what you say which will have an impact on the £value you have to give your Ex, but option b
I would also vote b)
You should have been provided with how the value will be calculated but I would have assumed it was A. Sale proceeds less outstanding mortgage. Not sure why she is only getting 35% as opposed to 50%
You should have been provided with how the value will be calculated but I would have assumed it was A. Sale proceeds less outstanding mortgage. Not sure why she is only getting 35% as opposed to 50%
Because she put 35% of the deposit down and i made up the remaining 65%
Because she put 35% of the deposit down and i made up the remaining 65%
In that case, both methods should give the same answer.
(Which is £94,500).