Transfer of equity queries

tea_lover

I have some questions about transfer of equity and would appreciate some advice. Will try to keep this as short as possible, but include the relevant info.

House value - approx. £200k
Outstanding mortgage - £110k

Currently mortgage is joint with my OH but I wish to buy him out, he's fully in agreement with this. I put in £50k deposit, and he's happy with me giving him £20k to cover his share of the equity.

I'll be getting an inheritance of £50k shortly. So the mortgage I'll need to take on by myself is £60k.

So far so good.... problem is, when do I apply?

I'm currently employed in a FT, permanent role. Salary around £25k. The company I work for is being bought out. I'm not currently at risk, but it's likely that that will be on the cards when the new owners take over (sometime after April).

Am job-hunting and it seems I'll end up on a lower salary. Likely to be in the region of £20-25k.

I don't know whether to try and get an application through now, or wait until I have a new role secured.

I can see that there are benefits to getting it sorted quickly. My main worries about doing this are a) although I'm not officially at risk, I'm concerned that the imminent buy-out will damage my chances, b) I won't be able to change jobs while the application is in progress, c) until I have a new job I don't know what my salary will be.

Am going round in circles, can anyone help please? TIA.

Apologies for the length... wanted to get all relevant info in.

TrickyDicky101

Do you and your OH reside in the property currently? Does your OH intend to reside in it once the ToE has been completed? If so, I think you may find it causes issues for many lenders (for the same reason that this kind of situation gives problems to children needing a mortgage to purchase parents' property and for the parents to continue living there). Something to bear in mind.

tea_lover

We're both there for now, he's moving out shortly. He'll be renting initially then hopefully buying somewhere else once he's no longer on the joint mortgage.

Thrugelmir

How long before the inheritance is in your hands? Winding up estates can be a protracted process.

tea_lover

I can have the money whenever it's needed, it's ready to transfer today. It's currently with my parents - they can give it to me (or direct to Halifax) as soon as needed. We haven't done this so far as it affects the equity.

Thrugelmir

tea_lover wrote: »

We haven't done this so far as it affects the equity.

Then I would start the application process now. Even with a lower salary the mortgage appears to be affordable. Also making a break from your ex partner should be done now rather than later. Particularly if the financial arrangements were informal. Don't leave time for minds to be changed.

tea_lover

Thank you, will give it some more thought. My gut reaction is to wait until the job is sorted but I'm aware that I'm not basing that on any actual facts or reasoning. Always useful to see what the experts say!

lonestarfan

Are you sure you'll need a mortgage of £60k and not £80k? Or are you paying the £20k to your OH from some other fund?

Thrugelmir

tea_lover wrote: »

My gut reaction is to wait until the job is sorted but I'm aware that I'm not basing that on any actual facts or reasoning. Always useful to see what the experts say!

Is your ex aware of the inheritance monies?

tea_lover

lonestarfan wrote: »

Are you sure you'll need a mortgage of £60k and not £80k? Or are you paying the £20k to your OH from some other fund?

The 20k to him comes from my savings.

He's aware that there will be some inheritance, but not the final amount.