Seperated and need to remortgage - Total Beginner!

jc8711

I have a joint mortgage with my now ex partner and want to buy her share so I can own it in my sole name.

We originally purchased the flat for £132,000 under the government ran help to buy scheme which meant that we had a £7,000 deposit and the government put in £25,000 on top of our deposit.

The current balance of the mortgage is £92,000 and I should be able to get a mortgage in my sole name to cover that but here is where I don't know how things work. The flat is now worth £140,000 so I assume she is owed 50% of the increase in value as well as 50% of the amount we have paid off the mortgage, so in total £7,500? Also, how do I pay her this amount? Do I get a mortgage for the balance plus the amount she is owed and it gets paid to her out of that?

One other annoying thing is that my current lender won't lend me enough so I'll have to go elsewhere which means getting charge £3,800 by my current provider to leave...

Apologies for being a bit of a dunce in advance and thanks for any help!

kingstreet

If there's an HTB Equity Loan, your first place to start is here;-

http://www.myfirsthome.org.uk/

as you can't remortgage or do a transfer of equity without permission.

Dave_Ham

There is no right or wrong here, just something that work and gets the separation formalised.


Technically, I would imagine the Early Redemption Charge should also be split 50-50 if the perceived profit is being. Add in when valuing that if you sold, you would incur additional costs such as Estate Agents, Legals etc. and then come up with a figure that works.


If you do not have the extra, then salary allowing you would need to increase your mortgage.


Be careful and check in advance that the help to buy equity deposit is still achievable, as often they have a lower threshold on affordability than many lenders.

jc8711

Thanks Kingstreet, I checked it out and it doesn't look like it should pose a problem. I'll just need to send any mortgage offer to them first accompanied with a document signed by my ex and I to confirm the changes.

jc8711

So what should I do now? Should I speak to a mortgage broker first or go to a solicitor, accompanied by my ex, and figure out who is owed what?

Fortunately we have parted on good terms so it should make the whole process much easier.

Thrugelmir

jc8711 wrote: »

One other annoying thing is that my current lender won't lend me enough so I'll have to go elsewhere which means getting charge £3,800 by my current provider to leave...

If you don't meet the affordability requirements for the amount required then it may be wise to have a contingency plan in place. Unfortunately relationship breakdown throws up many curved balls. That require tough decisions to be made. As there aren't easy answers.

jc8711

The flat has been valued at £140,000 so an increase of £8000 in total.

I guess my next step is to speak to a mortgage adviser and figure out exactly how the money breaks down?

Obviously I will keep my ex informed of what's going on but until I have a mortgage offer I don't think there is any need to meet with her or a solicitor?