Remortgage premarital property to fund divorce settlement?

igiiroko

Remortgage premarital property to fund divorce settlement?


Hi all,
I'd be grateful for your help and insight on this: Per the title above, I need to raise £55k for a clean-break financial settlement arrived at by "kitchen table agreement". I have about £200k in positive equity on my sole-ownership property. Can you advise about the pros and cons of raising the money by remortgage?

I have paid the mortgage down to £58k, and the property is now worth about £263k. I bought the property about eight years before marriage, the property has always been in my name only, and I have always made the mortgage payments alone. (We have a 9yo daughter, who will continue to live with me; my 14yo stepson and soon-to-be-ex have moved out and will continue to live together.)

I have (growing) long-term shares and investments that could be liquidated for perhaps £25k, but would need to supplement that sum - potentially by remortgaging. It is for that reason that I am considering taking the whole sum by remortgaging.

Many thanks in advance for your insight and advice,
igiiroko

dimbo61

If you can afford to borrow the extra money ( Income ) and get a contract drawn up by a solicitor this should be OK.
I would start with your current lender or speak to a mortgage broker to see if a new deal for the whole amount would work out cheaper.
So many things to take into account, age, income, savings, maintenance, long term plans

igiiroko

Thanks, @dimbo61. (I somehow missed this back in August.)