Buying out my Ex

Greatbucko1980

Hello

I'm hoping someone on here may be able to sense check something for me. After a few months on the market and not that many viewings, i have decided that I will try and buy out my ex. I worked out the following sums, but would be grateful if someone would sense check this before I go full steam ahead into this.

House bought for £185,000, mortgage of £161,000 - deposit put down by me £25,000.

I have agreed in principle that I will buy her out for an overall valuation of £192,000 and we are now down to £150,000 in terms of overall mortgage. In essence would I need to pay her half the equity paid off already (i.e. 5.5k) and then half the profit that the house is now worth (3.5k). This would make an overall payment of £9k to buy her share out - does this make sense?

Obviously I need to go and get agreement from the lender to take on the extra amount but any advice would be gratefully received.

Thanks

Caz3121

Greatbucko1980 wrote: »

Obviously I need to go and get agreement from the lender to take on the extra amount but any advice would be gratefully received.

If you are looking to give her 9k and the current mortgage is 150k you would be looking to get a mortgage in your name only for 159k (I am assuming that the current mortgage was in joint names)..will your income support that ok?

getmore4less

What agreement did you have about this senario?

If none then the equitable way is(adjust for the questions)

£185K who paid the costs? these need adding.

£25k deposit (you)
£161 mortgage £1k more?

Was the mortgage shared 50:50? assume yes adjust if not.

Any injections of cash improvements(this can complicate it) asume none

Your share is 25/185(13.5%) + 80/185(43.25%)
her share is 80/185 (43.25)

selling at £192k(have you accounted for costs?)

Her share is £83.04K her share of the outstanding mortgage is £75k

So to buy her out you need to pay £8.04k and get the mortgage lender to agree.

Greatbucko1980

Hi

Many thanks for taking the time to reply.

Caz3121 - I am thinking about putting an extra £25k's worth of equity to hopefully get the mortgage down to around £125. Would i be able to pay her the 9k or so and not have it added to the mortgage (i.e. pay it out of my savings)

getmore4less - Many thanks for your workings - food for thought for me. We did buy it on a 50:50 basis, but it was me who put down the deposit. Are the costs you are talking about stamp duty, solicitor, mortgage approval etc? We split these equally at the time, but I guess these would be costs that I would need to incur for buying her out.

Again, any help you can give would be much appreciated

Caz3121

Greatbucko1980 wrote: »

Caz3121 - I am thinking about putting an extra £25k's worth of equity to hopefully get the mortgage down to around £125. Would i be able to pay her the 9k or so and not have it added to the mortgage (i.e. pay it out of my savings)

You could do that but I guess you then still have a joint mortgage with her so you will need to get agreement to transfer into your name only