Overcomplicated situation?

Charlieew

Hi all.. not a newbie bit I forgot my old details (oops!). Hope someone can help...

Basically fiance and I co-own a house. We have kids.. we have decided to separate. It is amicable so needs to be fair.

Our house is worth 220k.. we owe 90k.. we have unsecured debts of 18k that we would like to pay off (car and one for home improvements) .

We had decided to sell house and pay off debts and then split the extra, giving us about 45k each after costs. We would then use this to buy smaller places in cheaper areas.

Our eldest possibly has aspergers and does not cope well with change so ithat would be ideal if I could buy him out and we could stay here so he cold stay at same school etc.

I need a mortgage company that will accept tax credits and maintenance as part of my income as I am only part time. Barclays seem to and I have an agreement in principle for 143k which is not enough to buy him out for the full amount, pau the debts and cover the mortgage amount.

Is there any way I could give ex 45k, pay off some of the debts and have him retain a 4.5% share of the house so if a sold later he would get a lump sum?

If it's possible how would we go about it legally?

Or is there another way?

Thanks in advance!

AnotherJoe

If you need more than the £45k then you can't possibly have you ex take out £45k so he'll have to gift you something. Let's say you need £55k, so he's going to loan you £10k and take out just £35k of the equity. Otherwise you are looking to pull money out of thin air. Unless I suppose you don't pay the debts off but that seems to be leaving a nasty sword hanging over your heads, and a mess, because who owns the loans? Best to get shot.

That loan of £10k (using my example) could be done under an agreement whereby he then gets back some agreed amount when the house is sold. He could have a second charge on the house to guarantee you can't sell and run off with his money. The agreed amount could be for example a proportionate rise in the value of the house, if the house has gone up by 50% he gets £15k back. All agreed through a solicitor.

Your lender would need to be in agreement with this. Santander allow it, I don't know if Barclays do,

Thrugelmir

Are all the kids remaining with yourself?

Charlieew

Yes they are... I have done some sums and I think it's not going to be possible.. we really want the debts paid out of the house proceeds so we are both starting with a clean slate.. thanks for replying!

[Deleted User]

I think first of all, I would sit down and have a talk with the ex, show what mortgage you can get, and see if a compromise can be reached. Particularly in view of having a son with ASD (I have two). It might be worth him losing part of the 'profit' of the house to get shot of the mortgage.

Could he take the kids at regular times so you could increase your working hours? Pay for child care?