Two weeks ago my girlfriend of 4 years (living together for 2) decided she didn't want to be my girlfriend any more. That's fine, it's her prerogative but what's less fine is that she is refusing to move out until she gets about 30k together for a house deposit, and she seems to think that I should be paying it for her...
Background: We moved in together just under two years ago. I paid ~200k deposit for the house and got ~150k mortgage in my name for the balance. She sold her house when she moved in but all of the equity went on paying her debts. She has been paying half the mortgage repayments since moving in (her payments to date total about 7k) and has contributed maybe 2-3k on improvements to the house.
As the house has now gone up to ~500k she's decided that she's owed half of the increase that is covered by the mortgage so 150k increase * ~40% of mortgage as total of purchase price * 1/2 = £30k.
I can see an argument for giving her back half of the amount we've paid off the mortgage (less interest) and her share of the house improvements and possibly increasing this a bit as the house value has gone up but 30k back for a 10k investment seems mental.
WWSD? I have no idea of my rights in terms of throwing her out (her parents live in the same city so she has somewhere to go) but I need to sort something as it's doing my head in!
TLDR: Ex didn't contribute to house deposit, is not on the mortgage but expects 30k as 'her share' of a house price gain and won't move out until she gets it
You need a solicitor mate...
I'm not a property law expert (though I do know a few), but she has a lot more rights than you think she does I am afraid to tell you...
First thing to do... Speak to a good lawyer!
I think if you get out of this only having to give her £30k you'll have done very well quite frankly! Not what you want to hear, but... Unless you actually charged her a defined (and declared) rent each month then she is going to be entitled to a portion of the value of the property! The fact it has increased significantly in value which would make her share much larger now potentially, is not her fault... 🤷🏻♂️
In refusing to move out, I would suggest that she has already taken legal advice herself (as that is what a lawyer would advise her to do), so you MUST seek to do the same yourself ASAP or risk severe headache and stress!
Soooooooo glad me and my GF have been 50:50 from the moment we moved in together and absolute transparency from the both of us. But this was by my design as I didn't want to risk falling into a situation like you are in myself!
I see a new patio in your future
Another vote for call a solicitor. You’re going to have to give her something, they’ll help you work out what.
A friend of mine was in a similar situation, she spoke to the solicitor sorted out what he could be owed but also acknowledged that there was nothing to stop her low-balling him. Conveniently, as we all know he’s a waste of space and too lazy to do his own homework, she offered him £20k (he could’ve got around £30k iirc) and he accepted on the spot. Only difference is that he was already out of the house
I see a new patio in your future
And spend the remainder of the £30k after the patio is paid for on coke and hookers yeah...?
Is she on the deeds..??
You may find it’s easier to stump up the money if you’ve nothing else in place. Or you move and ask for your share from her.
Ah nuts! Solicitor it is then, although there is a convenient patio space at the bottom of the garden...
Sorry to hear it’s got this bad. It’s not a nice place to be.
Protect yourself. Sadly I think you do need to lawyer up, and there’s only one winner there.
Remember if you need to post back with any rants, need advice or whatever do it.
Sometimes a strangers perspective is useful.
Get a lawyer.
Did you set up a declaration of trust when you shacked up in the new house initially? IANAL but from personal experience, irrespective of who’s being paying what, the person on the mortgage deeds owns the lot: equity and all.
Again: get a lawyer.
Don’t you have to include the cost you would have to sell the house in the increased value? (Or cost of remortgaging)
But being honest, £30k sounds fair to me. She needs to get back on her feet after all.
But defo get a solicitor and get the proper valuation, not sure where you live but £150k increase in 4 years seems high.
Wow. Just, wow.
OP, can I introduce you to the musical genres of gabba and speedcore? She needs to get up and go to work right? In order to save up this 30k. So it's time to buy some big speakers and begin the 24h onslaught of Loftgroover & HMS.
Sleep deprivation is your friend. I give her 72 hours max before she's shipping out.
I can see an argument for giving her back half of the amount we’ve paid off the mortgage (less interest) and her share of the house improvements and possibly increasing this a bit as the house value has gone up but 30k back for a 10k investment seems mental.
So the house has gone up by £150k, and she only wants £30k - seems a result, irrelevant of how little/much she put in.
Remind us how much/ittle you've put in over the same period for the £120k profit - £10K?
About 20 years ago in was in a similar situation but I had just left university so broke. Got a good job but she put the deposit up. My solicitor got me half, get a solicitor.
Remind us how much/ittle you’ve put in over the same period for the £120k profit – £10K?
What about the initial 200k?
The way I see it: house gone up by 43% on the original value (assuming 350 based on my basic maths from the OP). So her "investment of roughly 10k needs bolstering by 43%. Round up to 15k to be nice.
30k will be cheap if it goes sour with the legal fees. My mates just been there sadly she said at one point "I'm burning the f**er down rather than pay him"
Tbf he is a drunk who never paid for anything other than weed and vodka.
She gave him 16k and the car he cannot drive as he is banned in the end.
If you keep your house you have won.
Oh and take a tinder date home
Sounds like your ex hasn't got home rights so has probably no right to remain in the house.
Have you seen her calculations how she came up with the £30k figure? It sounds like she may have assumed that she has contributed 50% to the mortgage which equates to about 21% of the purchase price and therefore wants 21% of the perceived increase in value. I assume the legal profession have guides for working out how to settle these situations. So as suggested above an appointment with a solicitor should be a priority, or alternatively propose a mediated solution to your ex.
not sure where you live but £150k increase in 4 years seems high.
Have you seen the house prices in the UK recently...? And I don't mean in central London... 2yrs ago me an my GF were looking around at what 4bed detatched houses with a garage we might be able to afford locally as an upgrade from our 3 bed semi. Back then said houses were around £325-350k right as COVID started...
Those same houses are now £475-500k... And they're selling at those prices too!
So the house has gone up by £150k, and she only wants £30k – seems a result, irrelevant of how little/much she put in.
Precisely...
If I was in the same situation, got offered the opportunity to get out of it without involving solicitors etc. for £30k when the house has increased by £150k, I'd have the money within a week and a contract drawn up for her to sign to say once she has had the £30k payment that she has no further rights on the house whatsoever and needs to vacate it immediately too.
One of the best lessons life can give you is to spot the cheap/easy victories and to grab them with both hands!
So the house has gone up by £150k, and she only wants £30k – seems a result, irrelevant of how little/much she put in.
Remind us how much/ittle you’ve put in over the same period for the £120k profit – £10K?
House price increases aren't really like profits, though. You can't spend them. It's not like his bank account balance went up by £150k, and he just needs to take £30k out of it.
£10k for somewhere to live for two years is pretty good value.
Sounds very similar to my BIL. His flat, paid off his fiance's student debt, she paid half of the mortgage repayments while living there.
She cheated, left, stuck a lien on his flat so he couldn't sell it with out paying up.
I'd have lawywered up but hes too nice for his own good and paid up.
Good luck OP, have had a few friends go through all of this and it always got messy. Money brings out the worst in people sadly.
Although every time I read it year about this sort of thing happening I just breathe a sigh of relief that I'm unbelievably crap at the whole dating/partner thing and thus don't have these problems!
Who's getting the dog? 🙂
30k or a lawyer? I think I'd go with the 30k and a written agreement.
I'd also go with the £30k. Make sure a written agreement is enough. I remember I had a similar situation once. We agreed a figure but my lawyer told me I had to get something so she could never come back at me with another claim. I don't remember it costing very much but it wasn't disputed.
Same, although didn’t stop a claim after the fact when my company sale became public which happened long after the agreement. I’d get a quick valuation to support the assertion and if it’s in the ballpark find 30 grand quick and get a legal agreement. Don’t be surprised if once you do that the number starts going up !
Most solicitors give an hour's free consultation. I'd at least take that and see where the land lines.
My sister's entire divorce which took a while and was complicated 'only' cost her £10k or so.
Something like this likely much less. I'd lawyer up. Bear in mind they have duty to advise you if it'll be cheaper to settle than fight on.
If she has financed half of the gain in value of your asset then please tell me why she isn't entitled to half of that gain.
I'll point out that I'm writing as someone who put 75% of the value into my house and walked away with 40% of that value. Just be glad you aren't married! 🙂
Get an agreement and letter you both sign drawn up by a lawyer. In a similar situation in the 90’s, my then ex kept knocking on the door demanding more, on the last occasion bringing an angry BF. Police were called, letter displayed and they got a nice talking to.
If she has financed half of the gain in value of your asset then please tell me why she isn’t entitled to half of that gain
But it’s not that simple. She didn’t spend the years saving the deposit, bear the costs of purchase, take in the long term obligation to pay. If she hadn’t put in her portion of the payment each month, then the OP would have had to find it.
I’m not saying she should get nothing, but that it’s not as simple as that makes it seems.
I can see both sides here, and I’m not sure there is a good solution! To me it depends on whether the OP could raise that cash: if you can, then it may just be best over all to pay and be done. If you can raise £20k and that’s it then offer that.
An written agreement is wise, avoid lawyers fees if you can, but look for the free advice option/a pricing structure or quote - it might be money well spent.
Hope you sort something out.
Go straight to a solicitor right now and document everything.
I had to show that my ex was actually a drain on finances and didn't contribute at all over 3 years.
It a boot in the knackers but £30k seems cheap. I think the argument I was presented with was profit was facilitated by her contribution and if it had been a positive contribution then part of the increase in equity was due.
Jesus. People are such ****s. No idea why she thinks she is owed £30,000.
Bloody unbelievable. Good luck.
Jesus. People are such ****. No idea why she thinks she is owed £30,000.
She’s paid half of the mortgage on a property that’s gone up by £150k, she’s entitled to a cut.
Does it depend how her payments were made? Was it an agreement between OP and her that she contributed? Or did she directly pay to the mortgage company?
If a local agreement then see my post above re calculation based on percent increase of property value.
If direct to lender then she probably has a much better chance to rinse you out.
Bit then does she need to reduce her claim by an amount based on what it costs to live?
It a boot in the knackers but £30k seems cheap.
No idea why she thinks she is owed £30,000.
Did either of you read the OP at all? OP; Pay her what she's owed, move on with your lives.
Some interesting comments here - people saying she's entitled to more than you think being the most interesting one.
If her name is not on the deeds and/or the mortgage and they are not married then I would have thought she is 'entitled' to nothing. Clearly that's not the same thing as acknowledging she has made some contribution but in that instance I would suggest that her cut is proportional to the total equity she has invested.
If the house was worth £350k and she's ostensibly financed £7k then her share might more be reasonably calculated as 2% of the equity.
Oh and if you wanted to be especially forthright/(vindictive), you could just change the locks and leave her stuff outside. To all intents and purposes she's a lodger with no right of tenure.
Is ex on the deeds? If not, why is she paying half your mortgage? Extremely unfair to expect a partner to contribute to the mortgage and also improvements whilst never allowing any legal right to a share of the property! What exactly was the gameplan there if that was the case?
Oh and if you wanted to be especially forthright/(vindictive), you could just change the locks and leave her stuff outside. To all intents and purposes she’s a lodger with no right of tenure.
Even in shithole GB, tenants have some rights. So be very careful with this one.
f her name is not on the deeds and/or the mortgage and they are not married then I would have thought she is ‘entitled’ to nothing.
She has been paying half the mortgage repayments since moving in (her payments to date total about 7k) and has contributed maybe 2-3k on improvements to the house.
She will have acquired some equitable interest in the property by virtue of the fact she has contributed to the mortgage repayments and has done some work/paid for work to be done.
You need a solicitor mate…
This. It needn't be ridiculously expensive - ask them to advise you on the position, rather than take over conduct of the matter on your behalf. I can't imagine an hour's meeting and then a couple of hours' work drafting an advice is going to break the bank.
My sympathy to the OP must be a horrible situation to be in.
I’m no expert but I can where the 30k comes from.
Presumably fair or not that doesn’t answer the question about where the money come from.
Can the OP pay the mortgage on his own? Can he borrow the extra 30k against the house and still afford repayments?
If the only option is to sell then that is a massive PITA for her as well. Should she carry half the sale costs out of here share?
I have some experience in this area and can only echo the advice to see a solicitor. In my case, a settlement was agreed after the exchange of a couple of letters, which cost me a few hundred pounds. IIRC she got a cut based on what she'd put into the deposit and the increase in house value, less the amount I'd spent on improvements. It rankled at the time but ultimately was a small price to pay to get her out of my life.
Surely she had a 21% stake in the house (£75k of the £350k purchase), the house has increased in value by 43% (£150k on £350k) so her 21% is now worth £107k, take off half the remaining mortgage and that is her share. And that doesn't take into account the £3k she has spent on improvements.
£30k doesn't seem unreasonable
Is ex on the deeds? If not, why is she paying half your mortgage? Extremely unfair to expect a partner to contribute to the mortgage and also improvements whilst never allowing any legal right to a share of the property! What exactly was the gameplan there if that was the case?
But would it be fair to expect a partner to contribute to the running costs?
The 10k she's put in would be more than eaten up by equivalent rent.
She sold her house when she moved in but all of the equity went on paying her debts.
On the other hand, if she'd sold her house to move in with you (rather than out of necessity), I can see a reasonable argument that the amount should be the amount that her house would have gone up in value over the intervening period less what her running costs would have been (i.e. what she's forfeited by moving in with you). That's probably a fair bit more.
On the other other hand, that was her decision to do so, as it's been her decision to leave, she should probably bear some responsibility for her decisions.
See a solicitor, but from what I recall from my divorce, if she's not on the deeds/mortgage and you're not married, the fact your cohabiting matters not a jot. From what I can see she has not been contributing to the mortgage, she's effectively been paying you rent - if she wanted legal title, she should have been on the mortgage or got a declaration of trust. She may have an implied declaration of trust (hence the recommendation of a solicitor) but that'll be hard to prove.
https://familylawpartners.co.uk/blog/property-rights-for-unmarried-couples/
All that being said, there is a middle ground where you pay her something and you move on with your life. From experience, that is worth quite a lot!
I'd hazard a guess that she sold her house to clear her debts. And those debts meant she had a very poor credit rating so would have been a liability to the new mortgage application on their new house.
As everyone else has said a solicitor will be needed anyway so go and see one sooner than later.
