I want to buy my ex out of the flat we bought - I need some advice

26 posts in this topic

Looking at this logically, you both own half a credit that is secured on  property.

To work out things out;

1). The property gets sold and the proceeds pay off the credit.

2). The one leaving is able to hand over the entire credit to the one staying. However things like deposit, extra costs may have to be taken in to consideration.

3). The one staying pays out the one leaving, who then uses this to pay off their part of the credit. The one staying now has the original credit plus the new credit sum.

 

As the extra costs for the whole thing and any investment in the property may have to be taken in to consideration, you may need a lawyer. As you've said your ex is greedy then I would strongly advise getting one. You have not said how much the property is worth (or how much credit you both have because of it) but lawyer costs could be small compared to this gong wrong.

 

You also say he has contributed to 6% of the credit payments, if the credit is on both names it may not actually mater who has paid what. I can't see the bank caring unless it legally has to.

Do you pay the credit out of a joint account? If so, how would you prove who paid what? It may not matter who transferred what in to it the funds there may are seen as belonging to both regardless of how much each paid in.

 

I see a few unclear parts to all this and as the law is not always logical (or at least doesn't seem to be at times) you really should get legal advice. A greedy ex with not much cash behind them knowing their rights could come out of this well and leave you kicking yourself.

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I'm sorry to say it , but if I were your ex and forced to sell, and given the likely increase in the property price since you bought it,  I'd want to get a fair market price for my half, which means getting more money than what I've paid in so far from you. Nothing personal and I don't see it as being greedy, but as strictly sound business - if it was the other way around and the property price dropped and if I were you, I also wouldn't want to give him his original 50% and multiply my paper loss by a factor of  two. Splitting up with joint real estate is not trivial and I wish you good luck :(

 

 

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Yes, even "friendly" payouts usually (OK, in the two cases I have seen) go by market price and not what you originally paid for it, though in theory you could agree on something else. In practice I'd prepare for a market price scenario, because the default, if there is no agreement, would be to sell.

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well, let's do the math:

 

in 2018 you bought the flat at fair market value of (just for simplicity's sake) 100.000,- €. 

There were some associated cost, taxes, commissions, or whatever else normally gets added to the purchase of 10.000,- €

Since you had no savings you needed a mortgage loan for 110.000,- €.


While you were paying down on that loan, your property's value increased (hopefully). 

 

Now, in 2021, you decide to "split". You could just sell the flat for a fair price, I'd guess this flat would now be worth around 115.000,- €. Since you already paid down some on the mortgage, I'll assume you owe only 104.000,- € (Restschuld). You could pay that back, leaving you with 11.000,- € "net profit". 

 

You and your ex would each go home with 5.500,- € each - if you sold the place. 

 

Since you want to stay, I'd say it's "fair" to give your ex 5.500,- € for what his half of the flat is currently worth.

 

Of course your numbers will be different - but the formula would be the same: 

(current market value of flat - current remaining debt from mortgage) / 2

 

The only remaining "problem" would be the mortgage loan. Your bank willl most likely not let your ex off the hook there. That's why you need a contract between the two of you, and you will stay "connected at the hip" over this for a long time.

 

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Regarding the 50 percent: I believe the Grundbuch states in what shares each person owns the property.

 

His mortgage payments seem irrelevant to me. His ownership is irrespective of his debt. After all he owes the bank half the loan right? Who's on the mortgage? 

 

Even if only you are on the mortgage, if he's a fifty percent owner he's a fifty percent owner of the current property value.

 

This is my layman's interpretation as a fellow home owner.

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