Releasing Equity in Family House After Separation

smnbin

Sadly my wife and I recently separated. We have two children and I need to find somewhere else to live so I can have the children half the time. We're fortunate enough to have no mortgage on our home and I'm wondering what options are available to me. I had initially considered renting, but it seems expensive. My other thought is whether it would be possible to release my share of the equity in our home so I can buy my own home with a smaller mortgage. This would be a lot more affordable, but I don't know much about it. Anyone able to help?

AnotherJoe

Your wife would need to be able to afford the mortgage on whatever you took out.

smnbin

I'm not sure I understand. So, if our current house is worth £300k (for example) and I release £150k to purchase a new house at £300k we would both have a mortgage of £150k?

kingstreet

If it's a jointly owned property, it usually has to have a joint mortgage.

AnotherJoe

smnbin wrote: »

I'm not sure I understand. So, if our current house is worth £300k (for example) and I release £150k to purchase a new house at £300k we would both have a mortgage of £150k?

Not really because you can do what you want with your share, and also the house would become hers. You would trade your wife a % of the equity for full ownership. So if 50/50, she now owns the house and has a £150k mortgage, and you get £150k cash and do whatever you want with it (she in effect has kept her £150k in the house).

You might buy a £200k flat and have a £50k mortgage for example.

smnbin

I see. Thanks for your responses.

Thrugelmir

The property will form part of the financial divorce settlement. Have you consulted a family law solicitor yet for advice.

If the intention is for you to share custody. Is downsizing an option for your ex. In order that part of the equity could be released to you.