Divorce - Partner wants to buy out my share

tamara_d

Hi People

I am new to the forum but looking for some advice.

Partner and i are splitting up, we jointly own our property and we are married.

Current mortgage amount stands at 81000 and early repayment fees at 1650.

I am in the process of getting the house valued but i think roughly they will say the house is worth 110,000 and we would take 105,000.

My partner wants to buy me out and will need to finance the buyout and i believe a remortgage would be an option?

He told me he has spoken to our current lender halifax who said we cant remortgage because we havent paid of a minimum of 20% or because it was in the first 2 years of the mortgage.

I suspect if we sold the house minus any debts i would be due about 9000. Other than a remortgage i guess a loan is the only option other than selling the house and splitting any leftovers.

Has anyone been through this process than can give me any advice on how to move this on quickly and what the complications are of remortgaging and removing myself from the deeds?

Id prefer not to go through solicitors unless i really have to and my partner agrees we both cant afford to rack up huge bills as we have no savings.

Thanks people

holly_hobby

Hi there,

So sorry for your situation ... but will try to help.

To have you taken off the deeds and mge with Halifax is called a Transfer of Equity - to which the lender will perform an affordability assessment on him, in order to determine that he can service the mge on his own, and permit your release.

If they don't consider his income sufficient, they won't release you - simple as that.

Assuming they do consider his income sufficient, he wishes to release some equity from the property to effectively buy you out - this is called a further advance (as it is with the same lender, or a remortgage when you are changing mge lender).

To which Halifax have said there isn't sufficient equity based on their figs.

Which means that he will have to source an alternative lender and effect a remortgage and sumultaneous transfer of equity - BUT if the property value and their max permitted lending, isn't sufficient to allow the redemption of the current mge and further equity to pay you off - then there is no merit in his moving (assuming that his income is sufficient, if not thats another issue !).

So that would bring him to the fact of having to sell up to make a clean break - unless you would be willing for the circs surronding the property to change sufficiently to permit the TOE to complete (for which you remain legally responsible for the mge until your removal), and/or further advance/equity release exercise to be agreed.

Hope this helps

Holly