help please - should i buy out my partner?

samaki

Hi there-

Hoping to get some advice on my current situation. My husband and I are in the process of separating, its been on the cards for a while and so far we have been able to keep it relatively amicable. The one aspect that is causing us grief is our house. Its a 2 bed so even if we are in separate rooms we are getting on each others nerves and there is no way we can really move on with our lives while still being under the same roof..

We bought the house at the peak of the market but got a pretty good deal so we have managed to avoid negative equity. The house is probably worth about 133K and the mortgage remaining is 119K.
We have considered selling it but as we are still in our fixed rate period for the next 2 years we would face a 4k penalty.
I am considering buying him out (my parents would have to help me out) but i am worried if that is a bad move.. i could rent out the extra room to help with the bills but have also calcualted that I could manage the full mortgage alone.
I am also worried that if I decide to not sell after the fixed rate is up in 2 years I would be rejected for a re-mortgage as I am on 29k a year..

sorry this is a little vague, i just thought i'd see what peoples thoughts were as its a little overwhelming for me..
Thanks for reading.

G_M

Not clear what your concerns are..

to afford the mortgage and bills alone? you say you can even without a lodger, so with one..... no prob.

to get a new mortgage if you decide not to sell? Why will you need one. The fixed rate ends, you either move automatically onto their variable rate, or agree a new deal - it's the same lender, same 'mortgage', but different product.

When_is_the_reset?

Ask him to buy you out and rent a small place for yourself - it could be the best thing you ever do.

keith969

Don't buy him out. That way, you take all the risk, he takes none. The best thing to do is sell and make a clean break - it may be tough, but at least then you share the risk.

pinkshoes

£29k would get you approximately £100k mortgage, so you'd then need £30k in cash to cover the rest. If there's about £14k equity, then there's £7k, so you'd need £23k from your parents.

If you do buy him out, then perhaps agree a reasonable price, then perhaps deduct half what you would have paid in selling fees and solicitor.

If you like the house and want to stay living there, then I can't see anything wrong with buying him out.

I would go and speak to a mortgage advisor to see if the mortgage can feasibly transferred into your name only.