Quote:
Originally Posted by PegCityFlamesFan
Quick question if anyone is knowledgeable about this. I broke up with my common law girlfriend and I am trying to buy out her portion of the house. We've only been in it for a year but with the housing prices sky rocketing I know the equity went up. We bought for 230k and have about 227 left on it. I owe her 5k for the deposit. If they assess it at say 240 plus the 5k I am assuming I'll be paying her about 10k.
Long story short I was thinking about refinancing and adding the 10k to the mortgage but with the new 80% law how does this work. Any help is appreciated.
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I think you might be double counting here. If the place is worth 240 and comes with a 227 mortgage, there is 13k of equity. Her half would be 6.5k and your half would be 6.5k, so you'd only buy her out for that amount.
If you're going to pay her back her half of the deposit, don't also pay her for the equity from that deposit. Unless of course you borrowed your half of the deposit from her or something.