Want to buy my husband out of the house

BarneyRumble

Sorry if this is in the wrong place.

Hubby and I are separating. Its been coming for a while. He wants to put the house up for sale, clear the mortgage and then take half of what's left to start again. I would like to stay in the house, but I'm really not sure how to go about buying his half. I work full time and I have looked at the figures on paper and I feel I can support myself and our youngest son.

We both want to do this amicably. House is worth around 100k (needs a bit of refurb doing to it) our mortgage is 90K, I earn 17k and have no savings.

lika_86

Talk to your mortgage lender, you will probably need to remortgage, in which case you will need to consider whether you will be able to borrow enough with only your salary, check a few mortgage calculators first maybe.

jwed2000

We recently got a new mortgage, there have been a few changes recently, it can take 10 weeks to get a mortgage interview over the phone with some banks now and the interview is a lot more in depth and can take up to 4 hours, so be fully prepared. I'd suggest an independent advisor, that way you only have the one interview but still shop around. Also I think the Bank of England is looking to cap some mortgages at 4.5 times salary, in your case, the maximum they will give is £77k mortgage.
Will you have any other regular agreed money (from the ex?) that will help boost your income?
As a last alternative, would hubby lend you £13k that you can pay back over time?
Good luck!

*edit I should add the 4.5 x salary cap is not agreed yet and willonly apply to a set %age of people, however please be careful, if you stretch yourself and interest rates go up ...

pleasedelete

not easy as you dont have 20% equity as a deposit- you have 5% at best.

LEJC

As I read it at he moment from your opening sentance both of you seem to have potentially unrealistic aspirations


firstly the figures are really tight over there be much if any equity lefy in the house if it is sold once fees are paid and simply your lack of savings and potential deposit would make it very difficult for you to achieve a mortgage even if you feel that you could support repayments.


have you had the house valued in order to consider selling and are properties selling well in your area...
You say that it needs some reburbishment...is that likely to bring down the price that a buyer would look to want to pay and even force you into the situation of either doing the work to achieve the price you need or actually selling at a loss.


Something to consider is the possibility of yourself and soon to be ex being reluctant Landlords on the property and renting it out until hopefully property prices or either of your circumstances improve...a decision which shouldnt be taken lightly by any means and something that will no doubt test your powers of communication but something to consider as for some it can be a short term solution.
Again I doubt that either of you will make large amounts of money from this type of set up but if managed correctly it could pay your joint mortgage on the property and help build up some equity in the property.

RAS

If you are separating, are you intending a divorce? If so you will need a financial settlement.

If you sell the house at present the best either of you can hope for is enough to pay for the deposit on a rental and perhaps the agent's fees, once EA and legal fees are paid off.

If this went to court it is likely that the courts would let you live in the house until the youngest is 18/ends their secondary education but you would need to pay the mortgage.

You would be getting CMS? And also be able to apply for Mortgage Interest Allowance, although this may be come less generous in the future.

BarneyRumble

Thanks for all the info. It has confirmed my suspicions. WE had the house valued for mortgage purposes a couple of years ago in its current state it was valued at 100k (the state of it hasn't changed!!), similar sized houses in our area go for 125k upwards. The bathroom was replaced 3 years ago but it does need new kitchen. A couple of walls need plastering and a coat of paint everywhere else.