Buying out ex Partner on a property with a mortgage

gettingitsorted1980

Hi there im paying her out £33,000 as she only only a 25% share, there is £262,000 left on the mortgage as well. will i really have to pay stamp duty to buy her out. thats seems crazy when I paid stamp duty when we moved in ?

When they do the affordability checks, what happens if they think I cant afford it, but i still make the payments every month on time, do they try to force a sale, that would seem crazy. ?

The reason im worried is my credit rating is not the best its ever been so did not want to have to go through a credit check that this moment in time ?

densol_2

gettingitsorted1980 wrote: »

Hi there im paying her out £33,000 as she only only a 25% share, there is £262,000 left on the mortgage as well. will i really have to pay stamp duty to buy her out. thats seems crazy when I paid stamp duty when we moved in ?

When they do the affordability checks, what happens if they think I cant afford it, but i still make the payments every month on time, do they try to force a sale, that would seem crazy. ?

The reason im worried is my credit rating is not the best its ever been so did not want to have to go through a credit check that this moment in time ?

No they won't force a sale - no reason to - payments are made on time but they just won't release her from the mortgage either - so you are both kinda stuck. It happens a lot sometimes selling is the only option.

And yes SD is paid again ! I had £230 k left on our mortgage and paid over £75k to ex to release him - so had to pay 1% stamp duty of £115+£75 k ..... I was gutted as like you would have already paid 3% to buy the thing.

densol_2

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

I don't think you can get an agreement with mortgage companies to pay 75/25% of the mortgage as you are both considered jointly / severally liable - so it's a 50/50 debt but do check that with the solicitor ( ie are you only releasing her from a 25% mortgage ) long shot ... But it sprang to mind

Batchy

worst comes to the worst, the fee will cost you 6k to do it now, give her a grand or so extra to keep her sweet, and you both win...?

gettingitsorted1980

when we purchased the house we brought in in unequal share of 75/25%.

I invested 75% for the deposit and her the 25% ive always paid 75% of the total mortgage and for the past 12 months have paid the mortgage in full on my own.

Im sure that if you are still making the monthly payments then there should not be a problem ?

densol_2

The only person who can tell you if it's a " problem" about you taking over the mortgage on your own and releasing her is the mortgage company when they do affordability checks and credit scores ! Everything else is just speculation !

Mrs_pbradley936

Why do you have to rush to do anything if you can manage the repayments? I would do nothing until it suited me.

gettingitsorted1980

yes you are right, I think i will just sit it out its not a major issue at the moment. I have access to some cash and can buy her out in full with out the need for a remortgage, if I can do that and she signs a deed of trust, do i just then contact the bank and tell them I have brought out her share in the property ? then there is no need for any extra lending ? I would hope that would then sort it out.

Batchy

I think you will find the contract is signed and it will only become a problem when your partner doesn't want to be financially associated with you, and needs a mortgage for her own place.

most mortgage companies will ask you to set up a mortgage in your own name, and prevailing rates even too. if rates are better then it should be ok. Affordability wise, the time is not good at the moment for this assessment as its difficult to get these through, although not unreasonably so.

Mrs_pbradley936

Once the deadline for paying back the £8000 has passed you can contact the mortgage provider and say that your personal circumstances have changed and you need to renegotiate the borrowing/ownership formalities. Then take it from there.