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  • FIRST POST
    • smnbin
    • By smnbin 11th Jul 17, 2:03 PM
    • 6Posts
    • 1Thanks
    smnbin
    Releasing Equity in Family House After Separation
    • #1
    • 11th Jul 17, 2:03 PM
    Releasing Equity in Family House After Separation 11th Jul 17 at 2:03 PM
    Sadly my wife and I recently separated. We have two children and I need to find somewhere else to live so I can have the children half the time. We're fortunate enough to have no mortgage on our home and I'm wondering what options are available to me. I had initially considered renting, but it seems expensive. My other thought is whether it would be possible to release my share of the equity in our home so I can buy my own home with a smaller mortgage. This would be a lot more affordable, but I don't know much about it. Anyone able to help?
Page 1
    • AnotherJoe
    • By AnotherJoe 11th Jul 17, 2:10 PM
    • 7,591 Posts
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    AnotherJoe
    • #2
    • 11th Jul 17, 2:10 PM
    • #2
    • 11th Jul 17, 2:10 PM
    Your wife would need to be able to afford the mortgage on whatever you took out.
    • smnbin
    • By smnbin 11th Jul 17, 2:19 PM
    • 6 Posts
    • 1 Thanks
    smnbin
    • #3
    • 11th Jul 17, 2:19 PM
    • #3
    • 11th Jul 17, 2:19 PM
    I'm not sure I understand. So, if our current house is worth £300k (for example) and I release £150k to purchase a new house at £300k we would both have a mortgage of £150k?
    Last edited by smnbin; 11-07-2017 at 2:25 PM.
    • kingstreet
    • By kingstreet 11th Jul 17, 2:41 PM
    • 32,215 Posts
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    kingstreet
    • #4
    • 11th Jul 17, 2:41 PM
    • #4
    • 11th Jul 17, 2:41 PM
    If it's a jointly owned property, it usually has to have a joint mortgage.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • AnotherJoe
    • By AnotherJoe 11th Jul 17, 3:06 PM
    • 7,591 Posts
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    AnotherJoe
    • #5
    • 11th Jul 17, 3:06 PM
    • #5
    • 11th Jul 17, 3:06 PM
    I'm not sure I understand. So, if our current house is worth £300k (for example) and I release £150k to purchase a new house at £300k we would both have a mortgage of £150k?
    Originally posted by smnbin
    Not really because you can do what you want with your share, and also the house would become hers. You would trade your wife a % of the equity for full ownership. So if 50/50, she now owns the house and has a £150k mortgage, and you get £150k cash and do whatever you want with it (she in effect has kept her £150k in the house).

    You might buy a £200k flat and have a £50k mortgage for example.
    • smnbin
    • By smnbin 11th Jul 17, 3:10 PM
    • 6 Posts
    • 1 Thanks
    smnbin
    • #6
    • 11th Jul 17, 3:10 PM
    • #6
    • 11th Jul 17, 3:10 PM
    I see. Thanks for your responses.
    • Thrugelmir
    • By Thrugelmir 11th Jul 17, 5:15 PM
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    Thrugelmir
    • #7
    • 11th Jul 17, 5:15 PM
    • #7
    • 11th Jul 17, 5:15 PM
    The property will form part of the financial divorce settlement. Have you consulted a family law solicitor yet for advice.

    If the intention is for you to share custody. Is downsizing an option for your ex. In order that part of the equity could be released to you.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
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