Need some advise on family splitting up

t3rm3y

Pixie5740 wrote: »

If at the end of it you can't afford to buy somewhere then you'll just need to rent privately like millions of others do.

The thing that would really annoy me though is I would have a deposit. Ren rates are very high, much higher then mortgage - so if i could afford to rent + bills, then i would afford mortgage + bills, its whether the banks see that or not..

marliepanda

Cheeky_Monkey wrote: »

If you do want to buy don't forget that you will have to pay the extra 3% stamp duty as it will be your second property

Edit - sorry, forget that as you wouldn't have to pay stamp duty below £125k

You would. That doesn't apply on second properties. It would be 3% of the sale price regardless. So if under 125k, it's just 3%, not an 'extra' 3%

If he is bought out, that won't apply.

Does your ex HAVE 40k to buy you out?

Pixie5740

t3rm3y wrote: »

The thing that would really annoy me though is I would have a deposit. Ren rates are very high, much higher then mortgage - so if i could afford to rent + bills, then i would afford mortgage + bills, its whether the banks see that or not..

You need to sort out what's happening with the current house before you even start thinking about buying somewhere else. You need your share of the equity and you need to come off the mortgage or it will affect your affordability and you will be liable for an additional 3% SDLT.

If once you have your share of the equity and no longer have a joint mortgage with your ex go and see a mortgage broker. That will give you a good indication if buying somewhere is a realistic prospect but if it's not, then annoying or not, you will need to look at renting privately.

saajan_12

t3rm3y wrote: »

she would buy me out, Yes, provided she can get a mortgage alone that covers the outstanding mortgage balance + £40k to pay you. If not, you'll have to sell on the open market or wait (indefinitely) for your share of equity. so i would have that as a deposit, but if i have the thinking right this would only be around £40k.- which has to cover deposit, stamp duty, mortgage fees etc
I could afford a mortgage (based on what i pay for the house at the moment) and the bills on my salary as these would be slightyl less as less is used if just me. - I wouldn't bank on that.. a good portion of bills are standing charges, still heating the whole house, fixed costs for broadband/line rental/TV, still paying 75% of council tax.. the savings are slightly less electric usage and 25% of council tax, as well as any reduced costs due to a smaller property.. all small differences its whether a bank would loan me what is require to get a new house, with £40,000 deposit i would have a good start, but i earn £22k per annum, i seem to recall that when we fist looked at housing a single person would only get 4 x their salary , so i would only have about £120k ish to get new place - houses are not this low in essex and surrounding areas (need to stay faily local to see children and for work)

The limiting factor is how much you can afford to repay (according to the bank's affordability criteria). Given a budget of £120k, your options are
a) Find a smaller 1-2bed house / flat.. the kids can share when they are over - they won't need all their clothes etc
b) Find a cheaper area and commute (to job or to see children)
c) Rent and invest the deposit in a separate investment portfolio. The return from this may offset some of the rent you have to pay.