Ex buying me out of our shared equity mortgage

YellowJellyBean

I know that I need to see my mortgage company and solicitor which I'm hopefully going to sort out today, but this has kept me up so wondered if anyone could help me out in the meantime.

My ex husband and I separated in February, not divorced yet. I stayed in our home and he moved back with his parents. We have two children who mainly live with me but go to him three nights a week.

We have a shared equity mortgage - we owe about £33k to our builder when we sell/remortgage and the balance of our mortgage is just under £100k, meaning that our 'equity' is about £17k if I've worked it out properly although that obviously doesn't count the amount owed to the builder.

I've paid every payment out of my wage and most of the household bills (gas/lec/life and home ins), he paid council tax and water. We never had a joint account. The £7k deposit was also funded by myself.

my ex now wants to have his name off the mortgage in order to buy his own place. I can't buy him out because of my wage (£9k) and that I'm self employed. Our only other option is for him to buy me out (I think the bank would fund as he earns more than 4 x what I do and is in full time employment).

My question is - if he were to buy me out, would I get any of my money back I've put into the house? How would the transfer take place and how long would it take?


ETA we don't want to sell the house as it needs some work doing, I think he would be happy to move back in as long as he had the mortgage however I need the deal financially to work for me as I will be going into rented

Kynthia

You are married therefore all your assets should be considered together and not just the house in isolation. Your car's, equity, savings, pensions, etc need splitting as a whole and then the children's housing situation also needs considering.

You need a solicitor's advice.

YellowJellyBean

Thank you I'm going to spend some time today finding a solicitor that I can afford. We have nothing in joint names though. No savings and he has a car but that's all. I understand that those things would be counted in the divorce but we are a year away from that yet, Would those things really have an effect on him taking over the mortgage?

pinkshoes

Some exact figures would be helpful...

How much did you pay for the house?
What is it worth now?

If your equity is only £17k and you owe £33k to the builder upon selling or remortgaging, then I do not see how it is feasible that either of you buy the other one out.

The £33k would need repaying should your husband buy you out, so that means surely you are in negative equity by £16k.

Just to remortgage he/you would need to clear this £16k shortfall, then he would need a 10% deposit to put down.

I'm assuming the house is worth about £115k from what you have put, so you would owe £8k each to clear the debt, then he would then need another £11.5k to put down as a deposit.

If the above is correct, then I would not waste time on a solicitor in the short term, as clearly your only option is staying as you are with the current mortgage, or selling up and both taking out a loan to cover the short fall.

ANY assets are shared, including his car.

TBagpuss

As others have said, you need to get some poper advice. While your huisband may want to be released that may not be possible, if you can't buy him out at presnet.

Can you afford to pay the mortgage and other outgoigns on the house on your own? What will your housing options be if the house is sold? It may be that it is reasonable for you to stay in the house with the children for the present even if that means tht he has to stay on the mortgage for now.

Equally, as you are married and considering divorce, the finacial assets will ned to b divided taking into account your respective needs, resources etc; it's not necessarily and equal aplit or one based on who paid what. It will also need to take into account hwat you will be doing regarding any pensions, maintenance, and other asets such as the car, savigns or investments.

It's sensible to speak to the mortgage advisr to see what you can take on in your own right, but don't pay any fees or commit yourself until you have see a matrimonail solicitor.