Buying partner out: Will there be a problem with mortgage?

Griffboy

The other half wants out. We are not married and she has pulled a figure of £50k from the air. I don't think I'll argue with this too much, but I have a question...or two.

Our house is worth around £170k/£180k (who knows these days?) and we have a £56k mortgage. In fact we have just remortgaged and got a 10 year fixed rate at quite a low rate.

Do you think I would have a problem getting that kind of money on our current mortgage with me only showing about £24k on the books last year, and would it be possible to keep the same mortgage, just transferred into my name?

I've worked it out and I think I can get a £106k mortgage at my current rate over 20yrs, which is an extension of 7 years, for about £720 per month. Now this would be OK for me, I think.

I have a car worth £15k and about £11.5k in a savings account and about £5k in my business account. So, if push came to shove I could raise £31k. I would hate to raid everything though as I would then feel potless with no backup.

Cheers.

Prudent

Surely your OH is actually entitled to more than £50K? You seem to have about £114/124K equity. Half of that is about £55/60K

zzzLazyDaisy

Is it worth getting an estate agent in to value the house? Just say you are thinking of selling. That will give you a ball park figure, but you can knock 10% off that as estate agents often value high to reel you in, and then tell you to reduce the price a few weeks later.

More of a problem is the mortgage. You need to contact your lender and explain the situation. If you are going to buy your partner out, that is essentially a sale (from both of you as sellers, to just you as the new owner). Hopefully the lender will agree to just transfer the mortgage to you. But it may say that this is a redemption of the old joint mortgage and then you taking out a new mortgage, in which case redemption penalties may be applied. So you need to speak to them early, as if redemption penalties do apply, this will reduce the over-all value of the equity. Also don't forget that solicitor's fees will be incurred for dealing with the change of ownership of the house and the transfer of the mortgage.

Griffboy

What a load of hassle.

aah

it is unusual for me to side against a woman but why should she be entitled to more.

50k is surety. the house value is speculation - and as we all know house prices are going DOWN. anyone would be delighted to realise 100k from this house - and walk away with half of that - without remortgage hassle etc- of 50k. let me queue up to join her.

How much would it cost to sell? In viewing times, clearning up decoration etc as well as estate agent and solicitors fees. As well as being disinclined to do so. A load I would say.

Tell her to get real - and think about what you can afford - which is a lot less than she can, it seems.

Griffboy

I will, you have a point.