Splitting Up, Joint Mortgage Advice

MrTea_2

Hi Folks Newbie here just a quick question about a joint mortgage. After 6 years sadly my partner and me are calling it quits.

We have no kids but we do have a joint mortgage which is currently at 144,000 I reckon our property is worth around 180,000.

The last thing I want to do is lose the flat what are my options for buying my partner out, we released some equity not so long ago to pay off some of her bills recently and I would hope that would be remembered.

I'd be happy for her to take the car and stuff.

I want to do this as amicably as possible but have to say my mind is a bit mashed at the minute and would just like someone to point me in the right direction.

I don't think either of us wants to rip the other off it's just an unfortunate situation.

Advice would lighten the load.

Thanks

Tea

Rick62

There are two things you need to do. First you need to agree a fair price (assuming she is happy to be bought out, you keeping the property?). So currently you have maybe £36k equity. If she agrees about her bills, then you should adjust for this. Also you could argue that you would not receive £180k, but might have to negotiate down, pay EA fees etc. So 50% of £36k would be £18k, but hopefully (for you) less after negotiation.

The lender need to agree any 'transfer of equity' and also if you need to increase the mortgage to raise money for her. Do you have sufficient earnings to support the mortgage on your own?

I'm guessing the car 'and stuff' won't be enough to settle with the ex?

MrTea_2

Just been to see our mortgage people and ran some figures bit surprised at the estimated valuation more than I thought which normally would be a good thing but there you go.

I can afford up to about 25K but that is max.