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Topic:
How to caluculate property net worth? (17 Posts)
Started By:
Date:
15 April, 2017 08:15PM
How to caluculate property net worth?
xhikarux - 15 April, 2017 08:15PM
How to calculate net property of house?

I am told different things, the property of net is the following calculation

Current value minus the mortage to pay

But then another is saying that it should be

Current value minus (mortgages plus other tax fees)

Which one is correct?

Anyone?
Re: How to caluculate property net worth?
Andyk - 15 April, 2017 08:49PM
The you want the value to split the equity you should also deduct any estate agent and conveyancing fees.
Re: How to caluculate property net worth?
Bubblegum - 15 April, 2017 09:02PM
I did :-
Market value less 3% selling costs less outstanding mortgage and redemption penalties etc. = net equity
As for tax liabilities, I think it would depend on your circumstances and who's tax liability it is.



Edited 1 time(s). Last edit at 15/04/2017 09:04PM by Bubblegum.
Re: How to caluculate property net worth?
xhikarux - 15 April, 2017 09:12PM
Hi no we are not selling at all... he wants to keep out and split the remaining in money for me. So really there shouldn't be any fees
Re: How to caluculate property net worth?
Andyk - 15 April, 2017 11:27PM
You still need to consider the fees even if he is hit g you out, that what me and my ex did. I think we used a figure of 5% for fees. The should be no tax liability if itis your main residence
Re: How to caluculate property net worth?
davidterry - 18 April, 2017 01:48PM
The highest notional costs of sale I have seen has been 3% so by any reckoning 5% was too high. Bearing in mind that if there was actually to be a sale estate agent's commission is rarely as high as 3% (and can be a fixed fee like £500) and that you would probably seek the cheapest quote for conveyancing I would say that 3% was too high too.
Re: How to caluculate property net worth?
xhikarux - 16 May, 2017 07:31PM
Sorry to bump up this

I asked a few other people, they said they don't deduct the fees, calculation is only value-mortgage = equity which you put the value in the 'statement of information for consent order form'?

And the fact is he got valuation by 3 estates agents and they were all free of charge and still he deducted a few K of the divorce calculation to cover the free fee valuation. The fees does not even exist at all and he is not even planning to sell the house. I just feel this seems unfair? Correct me if I'm wrong?
Re: How to caluculate property net worth?
HatMan - 16 May, 2017 07:41PM
If I was him I would be arguing along similar lines ie if a house sale was forced there would be at least SOME fees, the negotiation should be over what is reasonable, if you go with zero I can understand his reticence to accept that position.
Re: How to caluculate property net worth?
xhikarux - 16 May, 2017 07:47PM
True

Unfortunately he stressed many times hes not giving up the house, he will end up in streets if sold. And the house is made of timber frame so selling is going to be even difficult. In the consent order it will be written that he keeps house....and fact that he got all his valuations for free where and earth is £5800 coming from? Not even a penny out for it?

If he was selling then even if the bill rung to 10k is reasonable. Surely I'm happy to deduct fees that do exist.
Re: How to caluculate property net worth?
HatMan - 16 May, 2017 08:03PM
What would the house be valued at?

Let's say £300K - Estate Agent 1% + Solicitors @ circa £1K = I reckon that's fair even if he isn't selling.
Re: How to caluculate property net worth?
Bubblegum - 16 May, 2017 08:52PM
I think you're right it is unfair to add notional fees that just don't exist. Given that this is a consent order that you are negotiating why don't you try and negotiate this down as you are making a valid point and depending how badly your ex wants this consent order to go through, you may Have some bargaining power.
Re: How to caluculate property net worth?
deflateddad - 16 May, 2017 09:58PM
I was told to put 3% in the consent order as a guide, an this would be the figure the court would expect.
Re: How to caluculate property net worth?
xhikarux - 16 May, 2017 10:36PM
Ok so house value is £273333, mortgage is £110303

Based on his calculation the £5800 comes from 1.75% of house value plus another 20% of this value? Wth?!
Re: How to caluculate property net worth?
xhikarux - 16 May, 2017 10:43PM
Hey defatedad, but do they still expect this if the house is not going to be sold?
Re: How to caluculate property net worth?
HatMan - 17 May, 2017 06:10AM
I think it's fair to make an allowance for 'notional fees' - - If you pushed it to the wire he could actually just say 'well I might as well actually sell the house then' in which case you are in the arena of stress of awaiting a buyer, hoping the chain doesn't collapse etc etc - He is taking all the hassle away from you by taking on the property...I think you need to recognise that in your negotiation.
Re: How to caluculate property net worth?
Andyk - 17 May, 2017 07:03AM
I used that in my negotiation, said I was prepared to walk away from the house and not buy my ex out. The would mean the house would probably take a while to sell, we would not get the asking price (she was desperate for the money), oh and the children will have to come and live with you. She came to her senses.
Re: How to caluculate property net worth?
xhikarux - 18 May, 2017 08:32AM
I see people putting the notional fees in the consent order, but on actual calculation should I still deduct this fee before we divide the remains between each other? If not selling? Also do I have to calculate vat on top as well? Well confused? I don't want to omit this part in consent order if it's compulsory. Just need t make sure calculations are correct to avoid consent order being rejected.
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