Buying out my ex

williams3d

Hi,

I split up with my ex six months ago and the house was put on the market but since then we've had no offers and very few people looking around (and as we still have to share the same house!) I have come to the decision to buy my ex out (as long as I can afford it). But I have a few questions before I actually start working out whether this is an option or not.

We bought the house for £105,000 and the house is currently worth £215,000, we have £91,000 left to pay and we have paid the mortgage equally so far so we theoretically have £62,000 in equity each(?). The mortgage has gone past the tie-in phase so we can leave without penalty.

To buy her out I am presuming I have to take out a mortgage for 91k+62k (=153k) and pay her the 62k. First of all, how does she get this money? Will the bank pay out a lump sum to her?

The next question is do I really have to pay her 62k? Seeing as she will be benefitting from no estate agent fees, legal fees, etc?

Do I remortgage with the same lender or find another lender? Is it a remortgage or is it a new mortgage? If it's a new mortgage am I able to get a first time buyer rate? Do these decisions affect how easy this process will be as I have to pay her share?

Is there anything else I haven't thought of?

Thanks in advance.

Andy

silvercar

To buy her out I am presuming I have to take out a mortgage for 91k+62k (=153k) and pay her the 62k. First of all, how does she get this money? Will the bank pay out a lump sum to her?

Your solicitor will sort it when he sorts out removing her name from the mortgage and deeds.

The next question is do I really have to pay her 62k? Seeing as she will be benefitting from no estate agent fees, legal fees, etc?

That's for you to negotiate.

Use any lender you like. Most lenders would consider it a remortgage with extra legal charges as you are taking a name off the deeds. Your not a FTB as you already have a home.

poppy10_2

You say the house is now worth £215k, but the fact that you have had no interest in it at this price suggests the value is too high. Get it revalued by a couple of other agents, you could save yourself a lot of money if they say the value of the property is less.

Also, it's reasonable to deduct her half of the estate agents fees etc.

Gorgeous_George

Make her an offer.

You could offer £40K - £50K rather than £62K. This would account for:

a. any difference in asking price vs offer price
b. Estate agent fees
c. Moving out costs
d. Solicitor fees

I told my ex-wife that she could either accept my offer or share any potential losses. In the end, she accepted my offer - and it was a lot less than £40K - £50K!



GG