Quick question about splitting up

grren

Hi,

At this time we have a 10% mortgage and we own 90% of it.

That is £30k and we own £300k now we are about to split in the next couple of months and we have agreed to go 50/50 and i give her a extra 30k and i take on the mortgage,

Now she will get about £180k and ill get £150k but as we are still legally married and I dont see any reason to get a "D" can i take on the mortgage as i have a full time job of over 15k a year and she works temp as we have kids.

I personally want to be liable for it as I dont want her to have to worruie about it.

getmore4less

Not clear what you are trying to do?

The only way to release the equity is to sell or get a bigger mortgage

If you want to buy her out and take over the house then you would need a mortgage for £210k with an income of £15k forget it.

She should only be getting £150k not £180k, you would then need a mortgage for £180k

Rockporkchop

What are you thinking of doing - selling the current house and buying two houses for £180k (her) and £150k (you), then you would move your £30k mortgage to your £150k house? Apologies if I have got this wrong.

I can't see any reason why you wouldn't be able to do this. Taking over a £30k mortgage on your salary should be fine, unless you have loads of other debts. The buying and selling costs and fees might eat into your equity a bit more than you think though.

Best of luck.

grren

yes.. i have no debts..

zzzLazyDaisy

Okay, it is not clear to me what you are wanting to do, so apologies in advance.

You have two choices in this situation -

1. You can sell the house and split the proceeds, which will mean that the current mortgage is paid off. Since the mortgage no longer exists, she will have no liability for it. You will then be free to buy another house with your share of the proceeds. If this means that you need a mortgage, your lender's rules will apply, but if you are looking for a mortgage of around £30k then this should be achievable on your salary. However do take into account that you will need to budget for maintenance payments for your children which will reduce your net disposable income (see the CSA website for an indication of how this is likely to be calculated)

2. The alternative is that you buy her out. You stay in the house and she moves out. This means that you will have to re-mortgage, to raise the money to pay her (unless you have savings or other assets which you can use, but in that case she is probably entitled to half of that money anyway). If you remortgage, her name will be taken off the mortgage, but this would mean you taking on a loan of £210,000 (the £180,000 to pay her off, plus the existing £30,000 mortgage). You won't get a mortgage of that size on your salary.

3. If your OH goes to see a solicitor, all this could go up in the air anyway, as even if you don't want a divorce, she may decide otherwise. On divorce the courts have the power to adjust property shares and will often allocate a greater share of the proceeds to the parent with care of the children, so that a home can be provided for them (depending on which part of the country you live, and how many children there are, £180,000 may or may not be sufficient to enable her to purchase an alternative home for herself and the children).

grren

What we are going to do and I think we can do it is this.

Sell The house and get 2 new ones for 175k and 155k and then hsbc will lock it to the 155k and she will be debt free and ill have a little debt. which im happy with.

I giot the 30k at a .99 above base rate (1.99) now. and its £97 a month. She has also agreed that if the rate goes up and i need help she will.

There will not be much CSA as we will do that with each other. ie. I have 50/50 share of the kids but 1 of the 3 will live with me.

getmore4less

If the mortgage is portable and they will let you have it in your name only then doable.

Selling one and buying two houses will cost a few £K so budget for that when looking, also you meed a buyer before you can be sure of the buy prices you need to be looking at .

I would aim a little lower on the buying prices unless you have some savings

alphonet

grren wrote: »

What we are going to do and I think we can do it is this.

Sell The house and get 2 new ones for 175k and 155k and then hsbc will lock it to the 155k and she will be debt free and ill have a little debt. which im happy with.

I giot the 30k at a .99 above base rate (1.99) now. and its £97 a month. She has also agreed that if the rate goes up and i need help she will.

There will not be much CSA as we will do that with each other. ie. I have 50/50 share of the kids but 1 of the 3 will live with me.

I am sorry of your circumstances.

Having just gone through something similar myself, I would suggest that you have a consultation with a matrimonial lawyer to understand your circumstances better (choose one thaat also has conveyancing lawyers). An hour consultation is about £150 but well worth it. The whole legal process is unfortunately heavily biased against a loving father and you could learn the consequences only after you have sold your home. EG whilst you have 50/50 care of the child (I have exactly the same situation) what matters is who signed the for child tax benefit, since that person will be deemed the "resident parent" / parent with care and that means the other half is still due to pay maintenance. The CSA can persue you even if you have a private arrangement. In a divorce, the courts will determine how the marital assets are separated and that is likely to favour the mother especially if she is the resident parent and would take account of relative incomes etc. A 50/50 split of assets may seem a fair approach is separation but in divorce would rarely be so equitable. If you choose a separation and residence agreement then you could include in the agreement the intent for the court to ratify the terms of the separation upon a later divorce. As both parties haave taken legal advice in coming to that agreement then the courts may look favorably, and the divorce is also less likely to be contested by either party. However the court can still determine differently especially if circumstances eg incomes have changed. If you come to a gentlemans arrangement then when it comes to the final divorce you will likely find that it is not 50/50 - you might be lucky to get away with 40% since you end up negotiating not with you wife but with her lawyer. It could be less depending on circumstances.

Sorry to be a bit negative, but I learnt the hard way despite having an excellent frinedship with my ex. I can only suggest you get some proper advice.