Mortgage issue with ex-partner

mattp83

I've recently split with my now ex-partner and we're looking at the house we own together. She wishes to buy out my share however if she's unable to re-mortgage with our current bank and needs to switch, and subsequently incurs any early redemption charges (as we've still got 2 years on the fixed rate), who is liable for these? Surely if this does happen, she must be liable for them as the fact that she can't get the mortgage with that provider isn't my issue or concern?

Strapped

mattp83 wrote: »

I've recently split with my now ex-partner and we're looking at the house we own together. She wishes to buy out my share however if she's unable to re-mortgage with our current bank and needs to switch, and subsequently incurs any early redemption charges (as we've still got 2 years on the fixed rate), who is liable for these? Surely if this does happen, she must be liable for them as the fact that she can't get the mortgage with that provider isn't my issue or concern?

It will be your issue or concern if she doesn't buy you out though, because you will then continue to be responsible for paying the mortgage on a house I assume that you now don't live in. The other option is to sell, and then you would incur selling expenses, so if the cost of half the early redemption charge is less than half the likely selling costs, I'd swallow hard and pay it.

mlz1413

I'd say 50% each, she is buying you out meaning no Estate Agent fees on top of the redemption fee.

Unless of course you want to come to an arrangment and sell in 2 years time.

pinkshoes

It should be 50% each of the costs, as it's the solution to no longer owning the property together.

If she was buying you out, would you be happy to pay 100% of the costs?

princeofpounds

It's your concern because if she doesn't get that mortage you are stuck owning an unsellable half of a house. You would then have to go to court to try to force sale of the whole thing to split the equity directly, with costs for lawyers, transaction and court. So the whole thing is really a commercial decision concerning whether to split the cost, not one of principles.

paddy's_mum

This has been posted in the Marriage section too and is getting the same responses - great minds thinking alike!

Rimo2021

mattp83 wrote: »

I've recently split with my now ex-partner and we're looking at the house we own together. She wishes to buy out my share however if she's unable to re-mortgage with our current bank and needs to switch, and subsequently incurs any early redemption charges (as we've still got 2 years on the fixed rate), who is liable for these? Surely if this does happen, she must be liable for them as the fact that she can't get the mortgage with that provider isn't my issue or concern?

She isn't incurring the early redemption charge on her own so why should she pay it on her own? You would have to pay it if she didn't want the house and it was sold.

Jewel_2

mattp83 wrote: »

I've recently split with my now ex-partner and we're looking at the house we own together. She wishes to buy out my share however if she's unable to re-mortgage with our current bank and needs to switch, and subsequently incurs any early redemption charges (as we've still got 2 years on the fixed rate), who is liable for these? Surely if this does happen, she must be liable for them as the fact that she can't get the mortgage with that provider isn't my issue or concern?

Not meaning to sound nasty, but I think your post is rather naive (in the way that only lack of experience suggests, as I have been through this).

I bought my ex out. I lost a lot of money and he walked away with half the equity. I have now sold that house for less than my ex and I bought it for/paid mortgage on it for. I think you are on to a real winner if she is willing to buy you out, at whatever cost to you. You will then have the freedom to start again. What are your alternatives?

mattp83

Thanks for the responses guys - I just assumed whoever was 'doing' the buy out would pay the early redemption fees if they needed to change lender - that's what I would have done if it was the other way round and I was buying her out. After I've been the one paying the mortgage & bills since we bought the property and being offered a ridiculous figure for my share of the property the thought of more expense and not actually keeping it just didn't seem right but I suppose it's just one of those things as I really don't want to live there!!

mlz1413

If your not happy with the buy out value less expenses AND don't want to buy her out for the same deal then just put it up for sale and split everything 50/50.