Buying out ex's share of jointly mortgaged property

nattajack2

Hi, my husband and I split up 6 months ago. Myself and our 2 children (aged 14 and 12) still remain in the jointly mortgaged property and I pay the full mortgage and bills (my husband is renting privately and gives me a weekly maintenance payment). Our joint mortgage current deal is up for renewal in February 2015 and I would like some advice as to whether I can buy him out of the mortgage and if so how much I would have to pay him. The figures are as follows:
Mortgage owed £60,000 approx (8 years left to go)
Value of property £90,000 approx
Is it correct that I would have to offer him half of the equity in the property (ie. 90,000 less 60,000, less any solicitors fees etc - therefore paying him approx £13,000 being half of equity)?? IS MY UNDERSTANDING CORRECT??
I understand that I would have to find out from our mortgage company that they would actually lend me additional money on the mortgage to buy my husbands share and remove him from the mortgage and that my husband would have to agree with this. Thanks in advance for any advise given.

Upsidedown_Bear

Duplicate thread here:
https://forums.moneysavingexpert.com/discussion/comment/66732909#Comment_66732909

nattajack2

Yes it is but I was told my initial post was in the property section so that is why I reposted in the marriage and relationship section. Shall I remove my original post?:(

DUTR

nattajack2 wrote: »

Yes it is but I was told my initial post was in the property section so that is why I reposted in the marriage and relationship section. Shall I remove my original post?

No, there are two issues going on here, yes for one party to buy the other out, then they would have to offer the other party at least half of the equity or thereabouts, as you have children, then the resident parent often gets some 'advantage' if the house has to be sold, or if you remain then the non resident only has to fulfill the CM.
Irrespective of the morals of moving the children etc, all parties have to be homed that doesn't mean living in a card board box on the streets. The lenders will want the payments kept up to date and if they are not, they will seek repossesion irrespective of children in the house .

TBagpuss

if you divorce, the court has to try to be fair to you both but also to consider the needs of the children and of you and your husband.

The children's need for a home is a high priority.

I would suggest that you start by making some enquiries about your mortgage capacity -how much could you borrow, and could you afford the new repayments (bearing in mind a new mortgage could be for more than 8 years depending on your age)

Can you afford to borrow the £60K needed for the current mortgage, and if so, can you borrow any extra on top of that?

You would also need to look at the other assets - do either of you have any savings, investments or pensions?

What does each of you earn? Do you have similar incomes, or does one earn more than the other?

All of these are issues relevant to what will be a fair settlement. The *start* point wold be an equal split, but that is an equal split over all (so if your husband has a pension, you might split things so you get the house and he gets the pension, rather than each getting half of each, for example) Unless you earn more than he does, then if the children are with you, it is likely to be reasonable for you to have more than 50% over all as your needs will be higher, with the children.

If you cannot afford to buy your husband out at a figure you can both agree on, then another option is for the payment to be deferred -e.g. for you to have the house while you need it for the children, with a charge over the house for you to pay your husband a lump sum once the children leave school.

It would be sensible for you to talk to a solicitor who can give you some advice based on your specific situation.