Joint mortgage (unmarried) and splitting up

brutal_deluxe

Hi All,

Bit of advice needed please!

I have a joint mortgage on a house with my girlfriend of which we are looking to split up 4 years after taking it out.

We both put an equal amount in for the deposit and have been sharing the repayments equally (it is a repayment mortgage).

It is looking likely that I will be moving out and she will continue to repay the mortgage on her own. She has enough savings to give me my part of the deposit back.

What in your opinion would be the fairest way to split the a) initial deposit, b) the equity built up over the past 4 years, but most importantly, the most pain free way to handle any transactions and solicitor involvement?

NB. It is totally mutual and free of animosity.

Much of this will sound obvious but I'm just looking for opinions right now. Please ask any questions. Any help is much appreciated.

BD

TrickyDicky101

What's the value of the house?

What's the outstanding mortgage?

Can your ex remortgage on her own (maybe not as easy as it sounds)?

kingstreet

Will she be able to demonstrate to the current or another lender that the mortgage will be affordable on her sole income?

If not, she won't be able to have you removed from the mortgage nor the ownership.

If she can, once the mortgage is approved, the matter will be passed to a solicitor for the transfer of equity to be finalised removing you from the ownership at the Land Registry.

Approximate cost for a ToE is £450 to £600.

Thrugelmir

The first thing your ex needs to establish is whether she can obtain a mortgage in her own right. As you need to come off the existing one as soon as possible in order to look after your own interests.

amnblog

On no account move out and rely on your ex to maintain mortgage payments on an account in your name.


Have her re-mortgage into her name - if she cannot afford this - sell.

brutal_deluxe

Thanks for the feedback!

Value of house = £215,000
Remaining mortgage = £142,000
Paid so far: Approx 12k
Initial deposit = 53k (26,500 each)

The current repayments are 670 per month and her salary is approx 40k. I don't know how lenders set their criteria in this respect?

How feasible does this sound for her to take on her own mortgage for the remaining amount?

Thanks

BD

kingstreet

Without her other outgoings, term etc it's difficult to say.

If the term is over 20 years and it's 4x income or less after credit commitments etc it should be feasible.

Thrugelmir

brutal_deluxe wrote: »

How feasible does this sound for her to take on her own mortgage for the remaining amount?

Certainly a possibility. However she's the one that will have to go through the correct channels to establish the fact. You won't get the answer on here.

brutal_deluxe

kingstreet wrote: »

Without her other outgoings, term etc it's difficult to say.

If the term is over 20 years and it's 4x income or less after credit commitments etc it should be feasible.

Yes 26 years remaining and I'm almost certain its less than 25% of her income.

She would also be able to 'buy-out' my deposit of 26.5k (for info)

So how would the dividing up of equity normally be calculated?

Thanks again for the rapid replies!

BD

kingstreet

There is no normal way. You have to figure it out between you if you didn't do a Deed Of Trust at the point of purchase.

brutal_deluxe

kingstreet wrote: »

There is no normal way. You have to figure it out between you if you didn't do a Deed Of Trust at the point of purchase.

OK so for instance would it be as simple as just looking at what we have paid off so far and divide by two? The mortgage statements aren't very clear about how much of it is interest etc so I want to get it right.

Thanks

BD