Buying Ex partner out of a mortgage

racky_2

Hi there,

I'm new to the site and was wondering if you could help me out with some mortgage advice.

My Ex-partner and I have a joint mortgage on a proprty in London. A few years ago we both emigrated to Australia where we split up. We have tenants in the property to cover the mortgage payments. I would like to buy him out of his share and take on the full mortgage myself. How would i go about doing this? Ideally I would like to just take over his share of the mortgage without taking out another mortgage. Is this possible? Also as I live in Australia my main income in over here, however i have a small income from the flats rental income. Can I take over his share of the mortgage with no UK employment?

Any advise would be greatly appreciated or if you could advise me who I could speak to about this would be great.

Many thanks

zzzLazyDaisy

racky wrote: »

Ideally I would like to just take over his share of the mortgage without taking out another mortgage. Is this possible?
Many thanks

I can't answer your other questions, but hopefully someone more knowledgeable will be along in a bit.

But as far as the mortgage is concerned - you will have to re-mortgage.

When you buy him out, the house will be transferred from your joint names into your sole name. This is in effect a sale. You will need to raise the funds to buy his share of the equity in the property (do you have the cash for this, or will you need to borrow extra funds?). You will also need to apply for a mortgage in your sole name to cover the current outstanding mortgage.

surreybased

Hi,

To remove him from the deeds ou will be looking to remortgage as mentioned. As you have tenants do you have a buy to let mortgage currently or consent to let? If you've been in Oz for a while you might not be aware of the major restrictions in mortgage lending in recent years. Lenders are very cautious and buy to let mortgages are more difficult to obtain.

Best to speak to a mortgage broker for the buy to let mortgages but as I guide I understand rental income should be 130% of mortgage.

(ps assume you have tenants deposit scheme set-up, as this is now a legal requirement plus gas safety, landlord insurance etc)

property.advert

If there is equity in the property, to be shared, then how much you give him and under what terms is immaterial. It is private transaction.

A lawyer can draw up a couple of page agreement (I have done exactly what you are suggesting) which will stipulate how you deal with the equity, F&F etc. and what you get in return, namely the equity for your cash (if applicable). Then there will be another document which is (in my case) the consent order to transfer the property. You send him money, he signs the paperwork, your lawyers sort out taking his name off the deeds.

Of course on the back of this is the mortgage. You will need a valuation and some decent equity, at least 25% and possibly 40% for a BTL. As stated, your rental income should be 130% of the mortgage on interest only.

It will all come down to what can be arranged with your ex and your finances. If you've good equity but you have no cash then you are stuck I'm afraid. Your ex or yourself can petition the court for a sale if you cannot agree. Not a good idea.

The numbers will dictate what you can do and how easily you can do it. It might be better just to sell it.