Buying out other Half - help

boxmilo

Hi
Can any one give me some advise re my situation. My husband and I are in the process of splitting up. We have a house worth 170k , with balance on the mortgage of 100k , debts value 16k. (We cant afford to clear the debts without releasing some equity in the house.)

If I wanted to take on the house and the mortgage how would this work?

Any suggestions - i am in fulltime work and have spoken to our current mortgage provider who say that they would be happy for me to have a mortgage in my own name etc .

Thanks

FBaby

Well you would need to provide 50% if the equity after debts repayment as a standard agreement. After that, there are different scenarios, depending on the type of ownership, who put what as a deposit, who paid the full or most of the mortgage etc....

In terms of how it works, you would need to go to a solicitor and re-mortgage in your sole name very much the same way you take on a new mortgage.

Caz3121

Will your husband be taking a share of the equity

If so (and assuming 50/50) then you would be looking for a mortgage of £143k if you are going to pay off the debt
house value - mortgage = £70k = £35k each
Debt = £8k each so left with £27k each...yours which would be the deposit
The mortgage provider would likely expect you to go through the application as if you were a new borrower,

boxmilo

Thanks. That's mainly what I thought everything's been equal in terms if payment of mortgage aNd deposit so it is 50/50. However I'm hoping that as I have the children he will allow me a higher proportion of the equity.
He will also be paying me an amount each month towards the children

Perhaps we may sell the house then it will be clearer. I just need to look at all the options

Many thanks for your replays

FBaby

What you need to focus on is for 1/ whether your mortgage lender will agree to lend you whatever you need to take him out of the mortgage and pay for his equity entitlement. If you can, then selling and buying elsewhere won't be necessary. 2/ before going that route, you need to be clear on what you agree as he will have to release himself from deeds and mortgage and clearly won't do that unless he is happy with what you offer him.

boxmilo

Think I will make an apt with the lender and get my figures worked out re monthly costs etc were tied into a fixed rate but they said on the phone that the charge would not count if I transferred the mortgage but I need to have those facts and figures in front of me to understand it all