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How to handle estate agents fees in separation

  • moo1
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15 Jul 12 #343313 by moo1
Topic started by moo1
My husband and I are separating the marital home. He is offering to buy me out.

After receiving valuations I feel we have a rough estimate of what the house is worth and would possibly sell for.

He has written to me with an assumed sale price less estate agent fees, conveyancing and sundries (I presume this means cost of handling the transfer of deeds/equity and anything else!).

We will then minus the remaining mortgage and divide the equity 50/50.

My question is: Should the estate agents fees be taken off the assumed sale price when there is no actual sale being undertaken? I understand that the transfer of equity and transfer of deeds costs do need to be split equally.

Confused!

  • Lostboy67
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15 Jul 12 #343314 by Lostboy67
Reply from Lostboy67
Hi Moo,
this is usually the way things are done in this situation. The net equity, that which is divided is the valuation - outstanding mortgage - notional sales cost.

LB

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15 Jul 12 #343320 by moo1
Reply from moo1
Thanks Lostboy.
It seems a bit bizarre when it''s not for sale but if that''s the usual way then that''s comforting.
Thank you for your quick response!

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16 Jul 12 #343374 by cookie2
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Look at it this way. If you sold it to a stranger then you would get £X (which is the value minus selling fees minus mortgage divided by 2). So if your ex gives you £X instead, does that not make sense? You''ve got exactly the same amount in your pocket as if it sold to a stranger.

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16 Jul 12 #343376 by dukey
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It is usual to deduct sale costs even when its not actually being sold in the usual way, if a husband or wife takes over the FMH there are still costs, application for a sole mortgage sometimes searches and then solicitors costs for transfer of title.

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16 Jul 12 #343555 by moo1
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I suppose I feel that I''m not in a position to buy, so currently renting and although I could afford the mortgage and payments (just about) I don''t want to live there. If the OH is managing this without remortgaging, I feel I lose out on the current great mortgage rate that we have and have to pay half for a sale that doesn''t really happen. I can see both sides of the fence of course!

Thanks for your responses, it''s good that you are all saying the same thing.

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