How do I buy my partner out of joint mortgage?

Seaxwyn

My partner and I are separating and I would like to 'buy him out' of our joint mortgage. I have heard this phrase often but don't exactly know what it means!

The house is worth approx £275,000 and the mortgage is approx £150,000. So do I just divide the equity in half, pay him £62,500, and get his name removed from the deeds?

I'd be grateful for any more explanation. Thank you!

Frogletina

If you both put in an equal amount for the deposit and paid equal shares for the mortgage that is exactly how I would do it.

It all has to be done through a solicitor but if you are in agreement with how you want it shared then so much the better. When I separated from my partner the shares were different as I had put down a bigger deposit so I had more equity in the house.

We agreed on a valuation (I didn't take into account that the selling price would most likely be less than a valuation) and I went to a solicitor with the figures. The solicitor drew up the paperwork and sent it to him to be signed which he did and I forwarded a cheque to the solicitors for the equity he held in the house which they passed onto him.

I wanted him to pay the solicitor's fees as he was the one who wanted to leave, but he was having none that. He spent his equity in 2 years, while the property now in my name only increased in value.

I cleared the outstanding mortgage at the same time, but I think you would need to check with the mortgage company that you can take on the increased mortgage payments in your name only and of course paperwork would need to be drawn up for that too

kingstreet

You first need to approach your lender for additional borrowing, or look to take out a sole mortgage with a new lender to repay your current mortgage and raise enough funds to pay your former partner's equity.

Once that is underway, the lender will instruct a solicitor and you're carrying out what's known as a transfer of equity. This results in your former partner being removed from the title deeds to the property.

The cost of a TofE is around £400 to £600 but some of the cost may be defrayed if you are remortgaging to a new lender at the same time.

There are many, many similar threads on this subject. A search of the term "transfer of equity" may provide further assistance.

themull1

My transfer of equity was about £720 for solicitors/land registry and £100 for indemnity i had to take out incase husband was going bankrupt.