? Complicated remortgage?

debjay

I am hoping that someone can help me with this situation:

Currently divorcing my husband (have lived apart for nearly 4 years) and have a joint mortgage of £145000 on a property worth £255000.

I am living in the house with my new partner and want to remortgage with him when the early redemption penalties end in December 2007.

As there is over £100000 equity in the property we are planning to get separate mortgages owning the house in 1/3rds. I would own 2/3rds and he would own 1/3rd. I am releasing £20000 equity to my husband as part of the divorce. Therefore, I need a £75000 mortgage and my partner would need £85000 mortgage. We would then pay back the mortgage of £145000 with his mortgage and £55000 of mine leaving £20000 for my ex-husband.

My questions are:

1) In this situation is it better to be tenants in common rather than joint tenants?

2) I earn £22000. Would I have any difficulty borrowing £75000 with my share of the property being worth £170000?

3) Is this all going to be very complicated to arrange and will there be huge legal fees?


Thanks for any advice

silvercar

I don't understand most of those figures, do they all relate to the same house?

Basically any mortgage lender wants first charge on the property, so the idea of having two mortgages is a bit of a non-starter.

You need a joint mortgage and legal documents drawn up to say who owns what portion of the house. You then need an agreement with the new partner to say who pays what share of the mortgage and the household bills.

It would also be useful to update your wills at the same time.

debjay

Yes the figures relate to same house. I thought you could have 2 mortgages on same house like maybe friends sharing

AndrewSmith

Even friends sharing have one mortgage with each person named on it.

You cannot buy 1/3 of a house nor mortgage a proportion with another person also mortgaging a proportion.

Basically if you both want to be names on the deeds as 'owners' you will have no choice but to take a joint mortgage together. You will then be equal owners of the mortgaged portion of the house and, likewise, jointly and severably liable for the entire debt.

It is possible for you to draw up an agreement with a solicitor netween to 2 of you regarding the equity and who has what claim over it but there is little you can do about the mortgaged element.