Buying Out Help......

Rob_Mogs

Hi Folks,
I'll just write a short note with the hope of elaborating later as I'm currently at work.


My Partner and I have been together 4 years and last September bought our first house.


I think the relationship may be failing (suspect she may be playing away) and I'd like a little advice to see if what I'm thinking is feasible.




If a breakup happens, she cannot afford to run the house by herself.


I can afford to run the house and pay all bills and also have enough spare each month for any unexpected expense - so no issues there.


The main issue is that she has saved since she was 16 for a house and myself being a 'lad' had not, so she paid the initial 22k deposit and has recently made another 8k overpayment on the property, leaving me 30k behind.


I wouldn't want to lose the house as I moved to the area to be with her and would have nowhere else to go other than renting (dead money)


So would there be a process available to 're-mortgage' the property into my name, whereby she could have the majority of her money back? and I could possibly take out a loan for the rest? (which again I can afford)


We've made vast improvements to the property over the last year which has increased its value by about 6-7% at least.
(new boiler - large patio - garden landscaping - along with other things)


Any help (forgetting relationship advice for the purposes of this post) would be brilliant.


Cheers all.

Dird

How has she plowed in £8k since September but somehow can't afford the mortgage?
How much have you put in since September?

Unless you have savings you have no leg to stand on as you need £30k equity + 3-3.5% released from a remortgage, they're unlikely to remortgage from 90% LTV to 100% LTV...and you'll have ERCs on top

AnotherJoe

Rob_Mogs wrote: »

Hi Folks,
I'll just write a short note with the hope of elaborating later as I'm currently at work.

My Partner and I have been together 4 years and last September bought our first house.

I think the relationship may be failing (suspect she may be playing away) and I'd like a little advice to see if what I'm thinking is feasible

If a breakup happens, she cannot afford to run the house by herself.

I can afford to run the house and pay all bills and also have enough spare each month for any unexpected expense - so no issues there.

Being able to afford it and passing a new lenders affordability checks are two very different things

The main issue is that she has saved since she was 16 for a house and myself being a 'lad' had not, so she paid the initial 22k deposit and has recently made another 8k overpayment on the property, leaving me 30k behind.

So you owe her £30k plus half whatever equity is in the house?

I wouldn't want to lose the house as I moved to the area to be with her and would have nowhere else to go other than renting (dead money)


So would there be a process available to 're-mortgage' the property into my name, whereby she could have the majority of her money back? and I could possibly take out a loan for the rest? (which again I can afford)

Yes, if you have enough cash to pay off her £30k and put into a deposit and be abel to afford all that on the lenders checks, not your say so.
Have you used a mortgage affordability calculator and seen what it puts out?

We've made vast improvements to the property over the last year which has increased its value by about 6-7% at least.
(new boiler - large patio - garden landscaping - along with other things)

Frankly I very much doubt that. Especially the latter two.

Any help (forgetting relationship advice for the purposes of this post) would be brilliant.

Cheers all.

You need to start with the basic maths. How much is the house worth, how much money do you need to borrow overall, how much do you have for a deposit. Use an affordability calculator.

ACG

You may be able to do a transfer of equity which means putting the current mortgage in your name.
You mmay also be able to take out a further advance to repay her some of the deposit but I doubt there is enough equity to get your partners full deposit plus her cut of any increase. But she may be happy to come to some sort of agreement on that, ie you pay her £x month or as you say take out a loan for what you owe her.

It could be simple or difficult depending on whether you both work together to get a solution and also your finances (in the eyes f the lender).

Thrugelmir

Is your view of "affordability" based on the current low levels of interest rates. Lenders will use a more conservative measurement to reflect the fact that rates could rise over time.

Rob_Mogs

Dird wrote: »

How has she plowed in £8k since September but somehow can't afford the mortgage?
How much have you put in since September?

Unless you have savings you have no leg to stand on as you need £30k equity + 3-3.5% released from a remortgage, they're unlikely to remortgage from 90% LTV to 100% LTV...and you'll have ERCs on top

Since last September, not this one.

And we're not 90% ltv, more like 75.

In its simplest form she's put 30k into the house and I have not, that's in addition to the monthly payments

Rob_Mogs

Thrugelmir wrote: »

Is your view of "affordability" based on the current low levels of interest rates. Lenders will use a more conservative measurement to reflect the fact that rates could rise over time.

In truth it's based on my new current earnings, what the house actually costs us to run and all other day to day expenses and then the amount I have left over, which more than doubles what the house (and all other bills) would cost a month should I go it alone.

My only stumbling block is the deposit.

AnotherJoe

Rob_Mogs wrote: »

In truth it's based on my new current earnings, what the house actually costs us to run and all other day to day expenses and then the amount I have left over, which more than doubles what the house (and all other bills) would cost a month should I go it alone.

My only stumbling block is the deposit.

That could be more like a very tall brick wall :-(

Go to see a mortgage broker who can run the numbers.