Hi would be grateful for some advise. Husband left a year ago. I am currently paying mortgage (£600pcm) The house is worth c£265k with a £75k mortgage. We have had one financial hearing and he has now made an offer. I stay in house with 3 children (17, 11 and 10) until youngest is 21 house is then sold and he gets 35%. My problem is in 11 years time the mortgage will still have 10 years to run. Is any account taken off him mking no contributions to mortgage payments for next 11 years? What about upkeep of house? My earnings are low and the only reason I can pay mortgage is tax credits and sons disbility allowance these will all stop when I have to pay him off.On these figures and todays prices I would need a mortgage of 8ok in order to buy a flat in the area I live once I have paid him off all when I am 50+. Is his 35% reasonable or should i fight it out to the bitter end. Out of interest he is cohabiting in a flat his mother owns - they are paying her rent of £400 pcm so he has no immediate housing needs. My legal fees are already £5k so I am at the point of agreeing to anything just to get it over and done with.
Without all the information it's difficult to say what's reasonable or not. Please provide details of your ages, respective incomes, any savings, investments or pensions and any debts so we can give a more helpful reply.
Hi thanks for your quick reply. I am 42 he is 38. I am self employed and have a gross salary of £7k plus about £18k in benefits (disability for son, tax credits and child benefit). He earns around 22k and his partner around 18k (she has no dependents. No savings. He has a small pension which I don't want. We both have debts of around 6k.
Assuming there is no reason why you can't increase your earnings over the next 11 years a 35:65 split doesn't sound unreasonable. By my calculation that gives him Â£66.5k and you Â£123.5k of the equity.
I'm having a mental blank at the moment so someone can correct me if I'm wrong. His Â£66.5k is a 25% share of the total property value and what he'll get is 25% when the house is sold so you benefit from the increase in value of your Â£123.5k plus any mortgage you pay off. You could of course take out an interest only mortgage. The property is effectively transferred to you with him having a charge on it so you pay for the upkeep I'm afraid.
thanks for your reply. I can't believe what you told me I thought a 35/65 split meant i would have to pay him 35% of the property value in 11 years time. Thought it was odd the barristers spent hours arguing over present value now it all makes sense!! Makes you wonder what I have been paying solicitor for during the last year. Sure this could have been sorted months ago if I had been told this at start. Still at least solicitors have got a result. Am I really stupid or should I have been told who process works at first appointment? Have written to sol asking why I had to find out from a website - I am sure they will have an answer - perhaps its something to do with being on my fourth solicitor (all same firm).
ps: if your day jobs not in law consider a career change