buying ex out of mortgage, how does it work?

worleyone

hi,
firstly, im currently separating from my partner, been together for 13 years and have had a joint mortgage for 7 years.
he is happy for me to buy him out of the mortgage, i can afford to do this if i raise the term back to 25 years (currently have 13 years left and its at £68k on a fixed rate of 4% for rest of term)
i cant get in at the nationwide till next week to discuss with them, but am wondering how they do it, do they let me but out his half of the mortgage or do i have to pay him half the actual value of the house (120k) ( he isnt worried what he gets so long as he had a little bit of a deposit for a flat)
im on 20k a year with 10k student/credit card debts still.
can anyone see a problem with them letting me buy him out/

thankyou, feel in limbo at the moment not know whats going to happen

StuTheDon

Hi there,

If the mortgage is joint then you are both each responsible for the debt at the moment. If you want his name taken off the mortgage you will be applying for a new mortgage for the full amount of 68k.

I'm not sure what you mean by them letting you off with his half.

Obviously your ex is entitled to a share of any equity in the place. For example, it is worth 120k, the equity would is therefore 52k. It would be reasonable that he would get half this - 26k.

So when you get the new mortgage, you pay him 26k, use your 26k as deposit and then you take up the monthly payments.

Hope this helps?

Trying_to_be_good

As Stu has said, you need to be able to take on the whole existing mortgage (£68k) plus whatever you offer to buy your ex out - so you're looking to take out a bigger mortgage. You need to discuss figures with your ex.

I think that may be a problem on your salary, and with other debt to take into account.

There's also going to be a minor legal bill for the new mortgage and Transfer of Equity.

You need to talk this through together, ideally.

StuTheDon

Trying_to_be_good wrote: »

As Stu has said, you need to be able to take on the whole existing mortgage (£68k) plus whatever you offer to buy your ex out - so you're looking to take out a bigger mortgage. You need to discuss figures with your ex.

I think that may be a problem on your salary, and with other debt to take into account.

There's also going to be a minor legal bill for the new mortgage and Transfer of Equity.

You need to talk this through together, ideally.

That's a really good point - you are going to need a mortgage of:

68k + 21k = 89k

Your salary is 20k and normally they will only loan a max of 3-4 times salary so this may be an issue.

worleyone

thankyou, i did mean to buy him out not but out!
i'd wondered if i would need to take out extra, resulting in a larger mortgage.
there is a possibilty of going full time at work in sept which i didnt want to have to do due to childcare issues but looks like i may have to, as only part time at the moment.

cal1_2

StuTheDon wrote: »

That's a really good point - you are going to need a mortgage of:

68k + 21k = 89k

Think StuTheDon means, as he states in an earlie post;)

68 + 26 = 94K (68 being current mortgage, 26 being half of equity)

Good luck whatever happens:beer:
Best wishes